The council, which covers holiday hotspots including Phillip Island, raised the fee earlier this year from $324 to $600, or $900 for properties with more than five bedrooms. Lisa, a Phillip Island holiday home owner who did not want her surname published, said she was caught off guard. "It seems a bit extortionate really," she said. She and her partner bought the home two years ago and rent it at about $220 per night on an online platform, hoping to share it until they move there permanently.
The council defends the increase as necessary to cope with additional costs created by the holiday accommodation industry. But tourism advocates warn that higher fees may deter owners from renting at all, leaving more homes empty for longer. The fee hike comes on top of a statewide levy of 7.5 per cent on short-stay bookings that came into effect in Victoria in 2025. While some councils like Warrnambool scrapped local fees after the levy was introduced, Bass Coast retained its registration process, which it has had since 2023, and now has the highest local fees in the state.
Some short-stay providers accuse governments of double-dipping. University of Sydney housing expert Nicole Gurran said the state booking levy was likely being paid partly by consumers. "It may be a bit of both: a bit of a provider absorbing the cost and a bit of them adding them on to the fee paid by the customer," she said.