TAX DOUBT: Claim ‘Airbnb levy’ won’t fix Lorne housing crisis

A LORNE community leader is skeptical about whether a coming levy on Victorian short-stay accommodation properties will impact the town’s long-running housing problem.

Committee for Lorne chairman John Higgins has questioned whether the proposed toll on bookings will free up desperately needed rental housing stock in the Surf Coast town, and if money raised through the charge will be spent in Lorne.

The new levy was one of the most-publicised initiatives in Victoria’s Housing Statement that the state government released last week – which proved to be the last major policy of departed Premier Daniel Andrews’ tenure.

The Short Stay Levy will recoup 7.5 per cent of revenue from platforms such as Airbnb and Stayz to state government agency Housing Victoria, which builds and maintains social housing properties across the state.

The government has committed to spending a quarter of the revenue in regional Victoria.

But Mr Higgins labelled the levy as a “band-aid” solution that was unlikely to free up a significant number of homes for long-term renting, and that revenue raised from Lorne properties should be committed back to the town.

“It will make short stay less attractive, but the question is where is the money going? Because if the money goes back into consolidated revenue, it doesn’t help our problem,” he said.

“A 7.5 per cent levy is not enough to change the dynamics.

“What we’re looking for is to really redress the imbalance between short- and long-term rentals so that people have to have a serious think about whether they’re going to rent a property long term, or whether they’re going to do short stay.

“That requires more of a shift than what we’re seeing here to free up those houses.”

Just two properties were listed as available for rent this week in Lorne with the cheapest being $750 a week.

Mr Higgins said the lack of availability and pricing meant living in Lorne was out of reach for people like teachers, health staff and hospitality workers needed for the town to thrive.

The Committee for Lorne has made housing stress a priority issue for more than a decade due to surging property values and declining rental stock.

It released its own housing report, Accommodating Lorne’s Future earlier this year, and is midway through a series of webinars aimed at brainstorming potential solutions to its housing crisis.

Meanwhile, the new levy drew criticism from tourism advocates.

Victoria Tourism Industry Council CEO Felicia Mariani said the policy would be “disastrous for the sector”.

Opposition tourism spokesperson Sam Groth said the levy would “punish Victorians”, and “make Victoria a less attractive destination for international and interstate visitors”.