A court has heard a former Tasmanian mayor rented out her short term accommodation to two council employees because there was a lack of appropriate accommodation on the state's east coast.
Debbie Wisby is facing two counts of improper use of information and misuse of office.
She has pleaded not guilty to the charges.
Ms Wisby was mayor at the Glamorgan Spring Bay Council on Tasmania's east coast for around two and a half years, before she resigned in July 2020.
The Hobart Magistrates Court heard Ms Wisby rented out her Airbnb accommodation in Triabunna to two of the council's acting general managers between May and August 2019 at a cost of $3,300, which council paid for.
The prosecution alleges Ms Wisby was a mayor and councillor during a period of time when Ian Pearce and Harry Galea were appointed acting general managers, and she was privy to information that they needed accommodation.
Prosecution lawyer Emily Bill has alleged Ms Wisby used the information to her advantage, in the form of income for her accommodation services.
Mr Pearce told the hearing he had a discussion with Ms Wisby about the cost of her short stay accommodation and was told it was $600 a week, which he was not prepared to pay because he knew the council was in financial debt.
He said Ms Wisby gave a discount because she recognised he, Mr Pearce, was there helping the council.
The defence has argued there was no financial advantage obtained because Ms Wisby rented her short-term accommodation for $300 a week when she would usually charge $140 per night.
Mr Galea told the hearing he had a conversation with Ms Wisby before he began his employment at Glamorgan Spring Bay Council and was told there were not many accommodation options available.
Mr Galea said he did not seek any alternative accommodation options because he only had a week-and-a-half to find accommodation that met his requirements, and thought the rate of Ms Wisby's place was reasonable.
Mr Pearce also told the court his wife had looked for accommodation prior to moving into Ms Wisby's Airbnb, but there were none that met his requirements, which included being within walking distance of the council chambers.
He said he remembered some accommodation providers closed or were blocked out during the winter months.
The matter will return to court on June 29.
