Approved Company Response - September 2023
The Stay Hub is aware of the recent decision by the Supreme Court to allow Auckland Council to reapply the Accommodation Provider Tax Rate (APTR) to all accommodation business operators from the 2024/2025 Annual Budget which becomes operational from 1 July 2024.
Before this time, the APTR will remain suspended. It is important to note that this ruling does not mean that the APTR will be reintroduced, nor will it necessarily be in its previous form. It simply means that it is now legal for it to become a funding option for Auckland Council as part of their 2024 Long Term Plan (2024-2034).
This will be implemented across the accommodation industry, and therefore it is likely that the industry will raise guest prices to compensate for the tax. So the industry as a whole will see an uplift in pricing, from short-term rentals, right through to high-end Hotels.
Further information can be found here.
ADDITIONAL INFORMATION
There are many businesses and organisations that are opposed to the APTR who will be vocal when consultation begins, if it is included within the next Mayoral proposal, including ourselves. It is widely regarded as a system that does not work. So while this ruling may have come as a surprise, it is not a current cause for concern.
Dec 2022: Mayoral proposal released
Jan/Feb 2023: Governing Body discussed mayoral proposal and developed proposed annual budget.
Feb-end March 2023: Public consultation on proposed annual budget open
April-June: Governing Body feedback consideration
End June: Final Annual 2023/2024 Budget approval
1 July: Final Annual 2023/2024 Budget becomes operational
PURPOSE OF THE APTR
Its intention is to boost the level of spend available to the Council’s tourism unit, Auckland Tourism, Events and Economic Development Limited (ATEED). So even if it were reinstated, there would be upside to its reintroduction for the short term rental industry.
An accommodation sector group, including C P Group, Millennium & Copthorne Hotels New Zealand, MLC Scenic, and Katalyma Hotels & Hospitality (formerly T & T Clarry’s Holdings), challenged the introduction of the rate, claiming it was unreasonable.
It argued the Act required local authorities when determining sources of funding to consider in relation to financing each activity “the distribution of benefits between the community as a whole, any identifiable part of the community, and individuals”.
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