LEVY ON SHORT STAY ACCOMMODATION BEGINS IN VICTORIA

The Victorian government has announced that its new short stay levy will apply to relevant Victorian properties from 1 January 2025.

A short stay is defined as a person or persons staying in a property for a continuous period of less than 28 days, for a fee.

The levy will be a flat 7.5 per cent of the total booking fees paid, including charges covering items such as cleaning, and GST where applicable. It does not include credit card fees.

The levy will not apply to hotels, motels or similar.

It will also not apply to properties designated someone’s principal place of residence (PPR), whether they own the property or not. The SRO offers the example of someone listing their home for short stay bookings while away on holidays as permitted.

The levy will apply to accommodation such as a house or apartment, private rooms, granny flats or other separate residences, even if located on the same land as a person’s principal place of residence.

The levy is to be paid by either the booking platform, such as Stayz or AirBnb, or by the person letting out the property.

The Short Stay Levy Act 2024 policy comes into effect having received Royal Assent on 29 October.

Revenue raised by the levy will fund Homes Victoria, with 25 per cent of monies to be invested specifically in regional Victoria.

See the State Revenue Office Victoria for more information.

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