The Victorian Government has announced that it will introduce a levy to properties listed on short-stay rental platforms such as Airbnb and Stayz, in an attempt to assist with the lack of long-term housing options in Victoria.
The 7.5% levy will likely apply to revenue from these short-stay rentals from 1 January 2025. Former Victorian Premier Daniel Andrews has explained that the proceeds would go towards Homes Victoria, to help fund the construction of social and affordable housing.
Justification for the Levy
Mr Andrews has stated that the 7.5% levy is “modest”, and “every single dollar” would be spent to help maintain and build affordable housing for Victorians.
The government have also released a plan to demolish and rebuild all of Melbourne’s high-rise public housing buildings by 2051.
How will the Levy Impact You?
As the proposed levy has only just been announced, all of the details are not yet finalised. The exact details will be set out in the proposed bill, which should be released shortly.
At this stage, it isn’t clear:
- Whether the 7.5% levy can be passed on to consumers in short-stay accommodation pricing;
- Whether the levy will apply throughout the whole of Victoria, including tourist destinations such as Phillip Island and the Mornington Peninsula;
- Whether it will be charged for private bed and breakfasts or those not using the platforms of Airbnb and Stayz;
- Whether the levy will apply equally to property owned by corporations and individuals; and
- Whether the levy will apply in both residential and commercially zoned areas.
If you are concerned about the levy’s impact on you, you can follow the announcements by the Government and read the draft bill when it is available. It is also helpful to obtain advice on the draft bill to ensure that you can take proactive steps to set yourself up before the levy takes effect.
If you are concerned about the levy, please contact us to join our mailing list, which will notify you of further developments and the draft bill. Our Property Law Experts can also be contacted on (03) 9481 2000 or info@tauruslawyers.com.au