VICTORIAN holiday-makers will become the first in Australia to pay a tax on short stays booked with online platforms under a new plan to build eight hundred thousand homes over the next decade.<\/p>\n
Premier Daniel Andrews unveiled a raft of landmark reforms last week as part of his Government’s long-awaited housing statement.<\/p>\n
The changes were headlined by an Australian-first statewide consumer levy on short-term accommodation bookings with platforms like Airbnb and Stayz.<\/p>\n
The Premier conceded the 7.5 per cent levy would not be universally popular but insisted it was modest.<\/p>\n
“Some people will say it’s too high, some people will say it’s not high enough,” he said. “Ultimately, there is a place for short-stay.”<\/p>\n
The consumer levy, to be imposed from 1 January 2025 once legislated, is expected to raise $70 million a year, with the extra cash funnelled into Homes Victoria to build and maintain social housing.<\/p>\n
It will end the ability of local councils to set their own fees on short-stay providers, which boast more than 36,000 places across Victoria.<\/p>\n
Airbnb Australia and New Zealand public policy head Michael Crosby hit out at the scope of the levy, declaring it has been set too high and will give hotels a free kick.<\/p>\n
“A rate this high could have a negative impact on the appeal of Victoria as a tourism destination,” he said.<\/p>\n
Stayz government and corporate affairs senior director Eacham Curry warned property owners could potentially circumvent it, leaving the government with nothing.<\/p>\n
“The 7.5 per cent increase means owners need only remove themselves from listing on platforms to avoid paying the levy,” he said.<\/p>\n
Under the 41-page housing statement, Melbourne’s 44 high-rise public housing towers will all be demolished and redeveloped by 2051.<\/p>\n
The Premier described the towers, built between the 1950s and 1970s, as crumbling and out of date.<\/p>\n
Construction timelines and costs have not been outlined, nor how tower residents will be housed during the redevelopments.<\/p>\n
The project is expected to lift the number of residents across the sites from 10,000 to 30,000 and boost its social homes by 10 per cent.<\/p>\n
As well, the Government plans to rezone surplus public land to build an estimated 9000 homes across 45 sites, with a target for 10 per cent of those to become affordable housing.<\/p>\n
To cut application time frames from more than 12 months to four, developments worth more than $50 million in Melbourne and $15 million in regional Victoria will be assessed by the planning minister instead of municipalities.<\/p>\n
The only condition is developers will have to set aside at least 10 per cent of the total homes as affordable housing to be eligible.<\/p>\n
Developers who prioritise affordable housing will similarly be able to access low-interest loans and government guarantees under an investment partnership scheme.<\/p>\n
Apartment design standards will be bolstered and penalties boosted for agents caught underquoting, including powers to strip commissions.<\/p>\n
Victoria will outlaw prospective tenants from rent bidding, increase the minimum notice to vacate from 60 to 90 days’ time, and ban landlords from raising rents for a year after asking the previous tenant to vacate.<\/p>\n
A new agency will be set up to resolve disputes between landlords and tenants, and limits placed on the information agents and landlords can keep on file and for how long.<\/p>\n
The housing statement sets out a target to build up to 800,000 new homes over the next decade as Victoria grows towards a predicted population of 10.3 million by 2051, an increase of 3.5 million.<\/p>\n
State Opposition Leader John Pesutto welcomed the cutting of red tape but branded the statement a “shameless con” on aspirational Victorians after nine years of inaction from the Andrews Government.<\/p>\n