Victoria will begin taxing short-stay rental platforms such as Airbnb and Stayz from 2025, as part of a raft of housing measures announced by the state government.
Premier Daniel Andrews also announced sweeping reforms to wrest planning approvals from local government and rebuild the state’s ageing social housing blocks.
Mr Andrews made the announcements as part of Victoria’s housing statement, a policy document aimed at boosting housing supply.
The document notes that short-stay rental sites have become a “popular feature” of Victoria’s visitor economy, but they have reduced the availability of properties for longer-term use.
“In Victoria, there are more than 36,000 short-stay accommodation places — with almost half of these in regional Victoria. More than 29,000 of those places are entire homes,” the document states.
“These are places that cannot be used for longer-term accommodation or rented out on fixed-term agreements — so it makes sense that they should provide some benefit toward the places that can.”
The 7.5 per cent levy will apply to revenue from the platforms from January 1, 2025.
Mr Andrews said income from the levy would go towards Homes Victoria, to fund the construction of social and affordable housing.
The statewide levy on short-stay accommodation is the first in Australia, opening the possibility of other states following suit.
Airbnb Australia and New Zealand public policy head Michael Crosby said while his company welcomed a policy to boost housing construction, the rate of 7.5 per cent was “too high” and would give hotels a “free kick”.
Victoria Tourism Industry Council chief executive Felicia Mariani said the tax would be “disastrous” and a “significant impost” that would be worn by those travelling across regional Victoria.
“Let’s use an example of $400 per night, on an average day of three nights,” she said.
“Well that’s $1,200, a 7.5 per cent tax on that is a $90 fee. That is not an insignificant fee that we’re asking visitors to the state to pay.”
(ABC)
