The Hon. Wendy Lovell, Liberal Member for Northern Victoria, Media Release, 3 September 2025

Liberal Member for Northern Victoria Wendy Lovell has urged Treasurer Jaclyn Symes to repeal Labor’s Holiday Tax that is harming Victorian tourism businesses.

Recently released data from the Australian Bureau of Statistics show that international visitors are choosing other states over Victoria, as the Allan Labor Government’s Holiday Tax has made taking a holiday in Victoria more expensive than ever.

Victoria saw a drop of over 2,000 short term visitor arrivals in June 2025, compared to the same month last year, even while all other states recorded an increase in the number of tourists.

Visitor arrivals to Victoria are still 10.6 per cent lower than pre-Covid levels in June 2019, and Labor’s Holiday Tax is slowing the recovery of Victoria’s tourism sector.

The state Labor government passed legislation at the end of 2024 to impose a 7.5 per cent levy on short stay accommodation available through online platforms such as Airbnb or Stayz, and the levy came into effect on 1 January 2025.

Ms Lovell warned about the effects of the levy on Victorian tourism during the debate on the legislation, and now accommodation providers across northern Victoria are complaining about the negative impact of Labor’s Holiday Tax.

One chief executive of a large property management company said that bookings in Victoria have dropped, while bookings in other states are growing.

The president of the Macedon Ranges Accommodation Association has said that the levy targets many small operators who are struggling with onerous reporting burdens, and a lack of clarity on how the rules apply.

Ms Lovell spoke in parliament last week to urge the Treasurer to repeal the burdensome tax.

Comments attributable to Liberal Member for Northern Victoria Wendy Lovell:

“The Allan Labor Government’s Holiday Tax on short stay providers is a greedy tax grab that is harming Victorian tourism businesses, totally failing to achieve its objectives, and must be repealed.

“A Battin Liberal Government will scrap the Holiday Tax, restore confidence in the tourism sector, and bring visitors back to Victoria where they can enjoy all that our wonderful state has to offer.”