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Victoria to build 800,000 homes, add short-stay levy

September 20, 2023 BY

Victoria must find housing for more than 3 million extra people predicted to be living in the state by 2051. (Joel Carrett/AAP PHOTOS)

VICTORIA has committed to building 800,000 homes in the next decade while holiday-makers will be slugged with a short-stay accommodation levy to address the state’s housing crisis.

Premier Daniel Andrews unveiled reforms as part of his government’s long-waited housing statement on Wednesday.

The changes are headlined by an Australian-first 7.5 per cent consumer levy on short-term accommodation bookings with platforms such as Airbnb and Stayz.

Under the housing statement, under-used and surplus government land will be rezoned to build an estimated 9000 homes across 45 sites in both metropolitan Melbourne and Victoria’s regions.

Apartment design standards will be bolstered under the scheme.

Victoria becoming a signatory to an “affordable housing investment partnership” will mean developers who prioritise affordable housing will have low interest loans and government guarantees.

The state’s planning system will undergo reform fewer decisions made by councils, which the government said would make approvals timeframes more transparent and faster.

The Andrews government expects its housing statement will lead to the construction of up to 800,00 new homes in the next decade, including 152,000 in regional and rural Victoria.

Victoria will also outlaw rent bidding, increase the minimum notice to vacate time from 60 to 90 days, and ban landlords from raising rents for a year after asking the previous tenant to vacate.

A new agency will be set up to resolve disputes between landlords and tenants.

Mr Andrews said the government’s housing agenda would deliver much-needed housing stock to improve affordability across the state.

“The status quo is not an option, and admiring the problem will only make it worse. Unless we take bold and decisive action now, Victorians will be paying the price for generations to come.

“Whether you’re buying your first place, upsizing or downsizing as life changes, or renting – the work we’re doing will mean there’ll be a place you can afford, and that you can call home.”

Airbnb Australia and New Zealand’s public policy head Michael Crosby has previously backed a levy but suggested a 7.5 per cent rate will impact tourism and should be lower.

Stayz government and corporate affairs senior director Eacham Curry has described the levy as ill-conceived and said the sector should not be painted as the cause of or solution to Victoria’s housing crisis.

– with AAP

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