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 1st January 2025.
The Short Stay Levy Bill 2024 was introduced into Parliament on 27th August 2024, and introduces a 7.5% levy on all short stay accommodation bookings made from 1st January 2025.
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 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
