THE Short Stay Levy Bill has been introduced into Victorian Parliament and there has been a mixed response to its potential outcomes.<\/p>\n
The legislation will introduce a 7.5 per cent levy on accommodation bookings of less than 28 days, including those made through platforms such as Airbnb and Stayz, from January 1, 2025.<\/p>\n
The levy will not apply to a homeowner leasing out all or part of their principal place of residence for a short stay.<\/p>\n
When a homeowner goes on holiday and someone else stays there temporarily, the levy does not apply.<\/p>\n
Commercial accommodation such as hotels, motels and caravan parks are also exempt.<\/p>\n
Minister for Housing Harriet Shing said the demand for housing statewide had never been greater, sparking the need for action.<\/p>\n
“The Victorian short stay levy will support the delivery of more social housing and encourage more people to use their properties for permanent rental accommodation across the state.”<\/p>\n
As a holiday destination, the Surf Coast Shire has a relatively high proportion of houses used as short-term rentals.<\/p>\n
About 10 per cent of the municipality’s total private dwellings are listed on Airbnb, with the proportion rising to as high as 24 per cent in Lorne.<\/p>\n
The Surf Coast Shire has welcomed the new bill, stating the short-term stay market was tearing at the social fabric and economic prosperity of the municipality’s communities.<\/p>\n
“All revenue will go to building and maintaining much needed social and affordable homes,” shire mayor Liz<\/p>\n
Pattison said.<\/p>\n
“The announcement aligns with our Council Plan strategy to improve access to affordable residential accommodation and also responds to our advocacy work in this space.<\/p>\n
“We look forward to receiving further details on councils having power to regulate short stay accommodation, and exploring how any proposed changes might be introduced.”<\/p>\n
However, there are fears the change will have adverse effects on tourism and accommodation, particularly on the Great Ocean Road.<\/p>\n
Surf Coast Rentals owner Daniel Aitken said the new tax was a “huge concern” and another hurdle for regional businesses.<\/p>\n
“After the Commonwealth Games fiasco, and then this, everything the government seems to be doing is making things a lot harder for regional businesses.<\/p>\n
“Especially in a place like Torquay, with the lack of commercial accommodation, we are so dependent on holiday houses.<\/p>\n
“It has a real potential to negatively affect the tourism industry.<\/p>\n
“If you overprice, no one comes and when they do, they won’t spend it the same way to support other businesses.”<\/p>\n
Tourism Greater Geelong & The Bellarine executive director Tracey Carter echoed this sentiment.<\/p>\n
“Generally, the tourism sector is concerned that the tax will be passed on to consumers, ultimately making regions in Victoria less competitive,” she said.<\/p>\n
“And in many coastal areas where commercial accommodation stock is low, short stay options are an important part of the accommodation mix.”<\/p>\n
Polwarth Liberal MP Richard Riordan said the new levy would mean the cost of accommodation would surge well above the inflation rate.<\/p>\n
“The state government has given no guarantees that our coastal communities will see any benefit from this big new holiday tax.<\/p>\n
“A new tax on accommodation and holidays will never solve a problem, it will only create an incentive for holiday makers to cross the border and go elsewhere.<\/p>\n
“Increased land tax and now short-term holiday taxes only serve to scare people from the Great Ocean Road and supercharge low-value day visits over multi day stay tourism.”<\/p>\n
Transitional arrangements will be in place, and the levy will not apply to bookings made before January 1, 2025.<\/p>\n
More details on how the changes will apply are expected to be announced soon.<\/p>\n","protected":false},"excerpt":{"rendered":"
THE Short Stay Levy Bill has been introduced into Victorian Parliament and there has been a mixed response to its potential outcomes. The legislation will introduce a 7.5 per cent levy on accommodation bookings of less than 28 days, including those made through platforms such as Airbnb and Stayz, from January 1, 2025. The levy […]<\/p>\n