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 Act 2024 received Royal Assent on 29 October 2024.
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, including bookings made through platforms.
You may have to pay the short stay levy if you accept a booking for a stay in Victorian accommodation that is less than 28 consecutive days, and charge a fee for the stay.
The levy applies only to short stay bookings in Victorian accommodation made on or after 1 January 2025.
Some Handy Links
Find out more about the short stay levy via the State Revenue Office’s website.
Or, click here to learn about the Goods and Services Tax Ruling.
How to obtain a private ruling – sro.vic.gov.au/request-private-ruling
How to join SRO subscriber email list – Become a subscriber | State Revenue Office
GST ruling – GSTR 2012/6 | Legal database
FAQ’s
Q. What is the Short Stay Levy?
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. From 1 January 2025, the short stay levy will apply to short stays in Victorian property. You may have to pay the short stay levy if you accept a booking for a stay in Victorian accomodation that is shorter than 28 consecutive days, and charge a fee for the stay.
Q. What is a short stay?
A. A short stay is a booking for a stay in Victorian accommodation that is shorter than 28 consecutive days, where a fee is charged for the stay. A booking for 28 days or more is not a short stay and not subject to the short stay levy.
Q. When does the Short Stay Levy start?
A. The levy applies only to short stay bookings in Victorian accommodation made on or after 1 January 2025.
Q. How much is the Short Stay Levy?
A. The levy will be a flat 7.5% of total booking fees paid, including fees and charges such as cleaning fees and GST (where applicable).
Q. Who pays the Short Stay Levy?
A. For a booking made through a booking platform, the booking platform pays the levy on the total fees for that booking. For a booking made directly with the owner or renter of a property, the owner/renter pays the levy on the total fees for the booking.
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.
Q. Are there exemptions for the Short Stay Levy?
A. The levy does not apply to:
- property that is someone’s principal place of residence, whether they own or rent that property
- commercial residential premises, such as a hotel, motel or similar accommodation
- certain specialist accommodation, such as rooming houses, retirement villages and certain student accommodation
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
