It's a tourist hot spot where happy families gawk at penguins, frolic on the beach and enjoy motor racing. But a rebellion is brewing on Phillip Island over what residents say is decades of neglect and council's favourable treatment of the mainland town of Wonthaggi.

Disgruntled residents packed into a room at Pino's Trattoria in Cowes on Wednesday to plot a campaign to secede from Bass Coast Shire Council.

Phillip Island residents are keen to breakaway from Bass Coast Shire. Credit:Simon Schluter

Tensions have been festering since 1994, when Phillip Island was forced to amalgamate to form Bass Coast Shire under the Kennett government.

''Since then nothing of any substance has been done on Phillip Island,'' former Phillip Island Shire councillor Stephen Fullarton said. ''Very little money has been spent here. For the rates we pay, we simply don't get the return.''