Mount Alexander Shire has removed the need for a permit for people to camp on private property where there is an existing dwelling in a 'first step' to fight homelessness in the region.
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Council voted unanimously in favour of dropping the need for a permit at its ordinary council meeting on June 20 following overwhelming public support for the move.
In moving the motion, Cr Bill Maltby spoke on the housing crisis which he believed would be an ongoing problem the council would face.
Cr Maltby said the community strongly supported helping some of the most vulnerable members across the region.
"Changing the law to allow this type of accommodation on properties will help assist (combating homelessness)," he said.
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The camping arrangement must be limited to one tiny house on wheels, caravan, tent or something similar.
"To get 1600 submissions is a very poignant point and we continue in the council ... (to) keep looking into the housing crisis," Cr Maltby said.
"This is a good start."
The proposed amendment was publicly exhibited online for 28 days where it garnered a total of 1616 submissions from the public where 91 percent were in favour of the decision.
Of the total number of respondents, 375 contributors cited housing as a major concern for residents, particularly around the high cost of rent.
In Castlemaine the median price of a rental is $420 per week, while the average buying price for a house is $750,000.
Deputy mayor Matthew Driscoll spoke in favour of the motion, saying it was "the best" the council could do at a local level to assist those facing insecure housing situations.
He said until the state laws around homelessness were changed, everything a local council could do to help would continue to be explored.
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"What we have here, in my opinion, is in this case the state law trumps local law," Cr Driscoll said.
"I have done a fair bit of homework on this speaking to our planners and I know this is putting our best foot forward.
"I don't think it goes far enough but I don't think we can change that at this stage.
"Until the state changes their own thinking in terms of how we help homelessness ... this is the best we can do."
Cr Maltby said the move was just the beginning of the work council would do to help people facing homelessness in the shire.
"Everybody is in favour of starting this process of helping the housing crisis and that is the first step," he said.
"There is no doubt we will continue to look at the issue and try find other alternative ways of tackling the housing crisis."
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