The City of Mount Gambier's council originally proposed a significant increase in council rates for short-stay rental properties, which would have affected platforms like Airbnb. The plan sought to classify these rentals as commercial entities, subjecting them to higher rates that could have reached 270% of residential rates. This intention came amid growing concerns over housing shortages, where the council believed that adjusting rates could bolster housing availability for local residents.

However, in a surprising turn of events, elected officials voted against the rate rise, citing the importance of supporting tourism in the region. With Mount Gambier being a key tourist destination on South Australia's Limestone Coast, the council's reversal is seen as a move to protect local tourism businesses that rely on short-stay rentals. Property owners expressed relief at this decision, seeing it as a win for local hospitality amidst broader economic challenges.

Housing advocates are urging that attention should pivot towards increasing housing supply rather than imposing penalties on short-stay rental operators. This stance highlights the ongoing debate in Australia about the balance between tourism development and housing availability, emphasizing that active measures are needed to address the country's housing crisis without undermining sectors that contribute to local economies like tourism.