Legislation for its nation-first levy – which some have dubbed the “Airbnb tax” – that will begin on 1 January 2025.
In September 2023, The Victorian Government announced the 7.5% short stay levy as part of its Housing Statement, to apply from 1 January 2025. The planned levy would apply to short stay accommodation platforms’ total booking revenue. The government has not yet introduced legislation into parliament, meaning the exact policy specifications are uncertain.
The Housing Statement specified that :
- revenue from the short stay levy would be paid to Homes Victoria, with 25% of funds to be invested in regional Victoria.
- local council charges on short stay accommodation would be removed.
In short, local councils and owners’ corporations will be given the power to limit or outright forbid short-term rental accommodation like Airbnb and Stayz under a new government bill.Property owners leasing out their own primary residences will be exempt from the levy and restrictions. Other exemptions include hotels, motels and caravan parks.
What’s Next?
The new powers will come into effect which includes a proposed 7.5 per cent levy, set to be introduced on January 1 2025.