Short stay accommodation to be taxed and regulated

The Short Stay Levy Bill 2024 introduces a 7.5 per cent levy from 1 January 2025 on short stay accommodation bookings, including bookings made through platforms such as Airbnb and Stayz.  
  
In his second reading speech the Treasurer Tim Pallas said revenue collected from the levy will go to Homes Victoria with 25 per cent of those funds to be invested in regional Victoria.  
  
‘The short stay levy will fund Homes Victoria to support their important work in building and maintaining social and affordable housing across the state,’ he said.  
  
‘While short stay accommodation has become a popular feature of Victoria’s visitor economy, it has reduced the ability for many properties to be used for longer-term accommodation. When residential properties are used for short stay accommodation they cannot be made available as longer-term accommodation,’ he said.

“ ‘The short stay levy will fund Homes Victoria to support their important work in building and maintaining social and affordable housing across the state.’ ”

Tim Pallas, Treasurer

Shadow Treasurer Brad Rowswell said the opposition would vote against the bill.  

‘This tax will not solve the housing crisis in Victoria,’ he said.

‘Victoria’s rental vacancy rate is currently at a historic low, estimated to be between 1 and 2 per cent. There is no evidence to support that a tax on short-stays will actually boost the supply of long-term rentals.’

He moved an amendment to the bill calling on the Legislative Assembly to refuse to read the bill until the government had completed a number of measures, including consulting with a range of sectors affected by the changes and releasing modelling to show the impact of the changes on the rental market and the tourism industry.

“ There is no evidence to support that a tax on short-stays will actually boost the supply of long-term rentals.’   ”

Brad Rowswell, Shadow Treasurer

Member for Frankston Paul Edbrooke said there are around 63,000 short-stay accommodation places in Victoria, with almost half in the regions and the new regime would help make more homes available for people to live in.  
  
‘We have had to, as a government, look at how we provide housing for our communities, and it is not all about how many houses we are going to build; it is about how we free up accommodation that is sitting there right now and is vacant,’ he said.  

“ 'Many of my constituents have been forced to move repeatedly as their rental apartments are being turned into Airbnbs.’ ”

Gabrielle de Vietri, Member for Richmond

Member for Lowan Emma Kealy said the levy would impact the tourist economy in regional Victoria.  
  
‘This will affect the rural and regional Victorians who are the hosts of these businesses, but also the people who own the local coffee shops and restaurants or have little boutiques – they might have a homewares shop – all of those little quirky places we have got in our communities,’ she said.    
  
Daniela De Martino, Member for Monbulk said short stay accomodation was contributing to labour shortages in parts of Victoria.

'I know there is an issue for me in outer parts of my electorate where businesses are struggling with workforce to try and attract people because they cannot stay there. There is nowhere for them to rent long term. This is a problem, but there is a slew of Airbnbs. So it is actually having a deleterious impact on businesses as well,’ she said.  
  
Member for Nepean Sam Groth said the tax would be paid mainly by Victorians.

‘Eighty per cent of travellers to regional Victoria are Victorians. They are people travelling within our own state, and they are the people who are going to be paying an extra cost on everything they do every time they go to stay in regional Victoria in short-stay accommodation,’ he said.  
  
Member for Richmond Gabrielle de Vietri said short-stay accommodation distorts the housing market.  
  
'In the middle of a housing crisis it is just not right that that there are 48,000 homes, entire homes, on Airbnb alone. This locks out renters from having a home, it keeps first home buyers out of the property market and it drives up the price of property for everyone,’ she said.  
  
'Many of my constituents have been forced to move repeatedly as their rental apartments are being turned into Airbnbs,’ she said.  
  
The bill also authorises owners corporations to make rules to prohibit the use of lots as short stay accommodation. 

The full debate is available to read in the Hansard of September 11 in the morning session, afternoon session, and evening session.