A local council on the NSW South Coast is investigating whether it can charge holiday home owners additional rates, and use the money to build an affordable housing fund.
Shoalhaven Council has commissioned a report to determine whether it could apply for a special rate variation for people who own multiple properties, do not live in the region and rent their property short term.
Mayor Amanda Findley said the money would go directly towards addressing the region's housing crisis.
"The money could be used to support housing providers working in the space by providing affordable housing in the Shoalhaven," Ms Findley said.
"If people turned around and said, 'I'm going to put my home up as a long-term rental', they would not pay additional money into the fund," she said.
Housing crisis at emergency status
A report released earlier this year by the University of NSW and the Australian Council of Social Service showed 70 per cent of people in the federal electorate of Gilmore, which takes in the Shoalhaven and Eurobodalla local government areas, are in rental stress.
Census data from 2021 showed more than 12,000 homes in the Shoalhaven were sitting empty, with many used as holiday rentals.
Peter Dover from Salt Ministries, a charity providing support for the homeless, has welcomed the prospect of more council funding to address the issue.
"Everyone has got to see this problem is bigger than council and the residents," Mr Dover said.
"The housing crisis has gone to emergency status, we need to do something now.
"I applaud the council because they're trying to do what they can."
Tax on holiday home owners won't help
The chairperson of Australia's peak body for short-term rental property owners said while he understood the need for action in the affordable housing space, additional taxes would not make a dent.
"I can see the initiative has value and it's showing [the Shoalhaven mayor] taking action and trying to be proactive, but in the scheme of things, those funds will do barely anything," Rob Jeffress said.
"I don't think the solution is to be targeting one group and saying, 'look we're not really comfortable with what you're doing and we're going to put the cost on you to provide an initiative that actually requires millions upon millions of dollars'," he said.
Ms Findley said council was in the process of investigating whether it could apply for the special rate variation to be put toward an affordable housing fund, but she conceded it may not be possible.
"I'm not sure the state's legislation will be open enough to allow for this to actually happen," she said.
Council will also look at other measures such as re-zoning land for more housing and encouraging holiday home owners to rent their homes to long-term tenants.
