The Victorian State Parliament has passed the contentious ‘AirBnB Tax’ law to impose a 7.5 per cent levy on short-stay accommodation platforms. The Act was passed in the Upper House on Thursday 17 October and the levy will apply to bookings made and completed on or after 1 January 2025. The levy applies to Victorian providers who offer accommodation for less than 28 consecutive days. The levy is a flat 7.5 per cent of the total booking fees paid, including fees and charges such as cleaning fees and GST.
The Short Stay Levy is a feature of the Victorian Government’s ‘Housing Statement,’ which aims to tackle housing supply and affordability in Victoria. The revenue raised from the Short Stay Levy will go to Homes Victoria, which manages social housing in the state, with 25 per cent of funds to be invested in regional Victoria. The Housing Statement also says: “other local council charges on short stay accommodation will be removed.”
Michele Waddington, owner of Fairbank House holiday home rental, believes the levy will have an impact on local accommodation providers and beyond: “The legislation, which taken with other recent taxes, has significantly impacted Maldon’s economic recovery,” she told the TT.
Michele points also to Council requirements for holiday houses to be registered and rated as a commercial property and attract land tax at a commercial rate (which is 30 per cent more than residential properties). She says that the short-stay levy creates financial stress for what she calls ‘Investor Supporters’ of Maldon’s tourism and events such as: “…residents and second-home owners (who) joined the highly competitive short stay rental market” as well as “Maldon homeowners who capitalised a granny flat or annex into a short stay money earner.”
The State Revenue Office is delivering an education program about the Short Stay Levy, with on-line sessions for property owners, renters, booking platforms, tourism associations, real estate agents and local councils. A series of webinars are happening in November to further explain the levy and obligations for those who take bookings. Visit tinyurl.com/2ajbmnnt.
This article appeared in the Tarrangower Times, 22 November 2024.
