Short Stay Levy
In August 2024, the Victorian State Government announced that the Short Stay Levy, introduced in The Victorian Housing Statement in September 2023, is planned to come into effect from 1 January 2025.
The Short Stay Levy Bill 2024 was introduced into Parliament on 27 August 2024, and introduces a 7.5% levy on all short stay accommodation bookings made from 1 January 2025.
The Parliament of Victoria passed this legislation on 17 October 2024. Read more.
Q. What is it?
A. The Short Stay Levy is a new and additional tax, charged at a rate of 7.5% of the total booking fee, on short stay accommodation.
Q. What kind of property is subject to the levy?
A. Premises in Victoria that are used for short stay rentals (stays less than 28 days) are subject to the levy. Principal places of residence and commercial accommodation such as hotels, motels and caravan parks are exempt.
Q. The 7.5% will be charged on a total booking fee. What is a ‘total booking fee’?
A.The total booking fee is the booking rate, plus any cleaning fee and booking fee associated with using a commercial booking platform (i.e. AirBnB), and GST. The total booking fee does not include credit card fees.
[Ref: Page 8, Short Stay Levy Bill, Explanatory Memorandum]
Q. My business is built on selling short stay accommodation using privately owned homes. Will the levy apply on the stock I manage?
A. The short stay levy will apply to any dwelling that is privately owned, meaning not registered as a commercial accommodation, and used for short stay accommodation, noting that principle places of residence are exempt.
Looking for more information?
- CLICK HERE for the Premier’s Press Release
- CLICK HERE for the Short Stay Levy Bill | Explanatory Memorandum
- CLICK HERE for the Short Stay Levy Bill
- CLICK HERE to watch a short video from the State Revenue Office Victoria
More Information
From 1 January 2025, the short stay levy will apply to short stays in Victorian property.
To help you understand what you will need to do, the Victorian Government have published updated content on their website, including:
- more detailed FAQs and examples
- an overview video
- a form to provide to a booking platform declaring your property is excluded from the short stay levy, if applicable.
Join a webinar
Free online education sessions will be hosted into the new year:
- Thursday 9 January, 8:30am
- Friday 10 January, 9am
Click here to register for a short stay levy webinar.
What has Yarra Ranges Tourism been doing about this new tax on behalf of industry?
Since the initial announcement by the Premier, Yarra Ranges Tourism has been advocating for a fairer approach to this tax through ongoing representations to the Department of Treasury and the Parliamentary Secretary to the Treasurer.
The key issue that Yarra Ranges Tourism and other regional tourism bodies have raised is the fact that short-stay accommodation has helped regions meet the demand for beds in areas that have not had the levels of commercial accommodation required to meet visitor demand.
The second issue is that this tax, as was proposed and that has now passed through Parliament, takes money from regions and directs it to a housing strategy.
We firmly believe that money taxed from a region's tourists should stay in the region to support the renewal and maintenance of local and state infrastructure used by visitors such as civic amenities, roads, national parks and waterways. The direction of this tax to the Housing Strategy does not guarantee that any money will be spent in regions where it is collected to support affordable housing for the community or workers so crucial to the health of our visitor economy.
Despite these efforts to advocate for a change to the Tax, it has passed through Parliament. The State Opposition has, however, indicated that they would repeal this tax if they are returned to the Government.
The State Revenue Office will collect the tax for all booking platforms, whether individual (direct bookings) or collective platforms, and all enquiries should be directed to them.
The State Revenue Office is offering a series of information webinars for Short Stay Accommodation Operators to be informed about the new tax.
These sessions will focus on administration matters, providing information about:
• registration requirements – what you need to provide
• lodgement – what returns will require
• payment – how payments can be made
• calculations – how the levy will apply
• important dates.
Short Stay Accommodation operators can register for a session here.