New Victorian Levy Grants Body Corps Power to Ban Airbnb and Stayz

The Victorian Parliament is set to debate the Short Stay Levy Bill 2024, which was introduced on Aug. 27.

The legislation proposes a 7.5 percent levy on short-stay accommodation bookings, including those made through platforms such as Airbnb and Stayz, effective Jan. 1, 2025.

The Allan Labor government contends that this move will help address the housing crisis.

“Short-stay rentals reduce the number of properties available for longer-term accommodation for families who need a place to live. There are around 63,000 short-stay accommodation places in Victoria, with nearly half of these in regional Victoria. Almost 50,000 of those places are entire homes that are not available for long-term rental,” claimed a statement released by the government.

Expected to raise around $60 million a year, all revenue will go to Homes Victoria to support the building and maintenance of social and affordable housing. Twenty-five percent of the funds will be invested in regional Victoria.

“This is an important step towards making more properties available for long-term rental, and we’ve consulted with the sector to ensure we’ve got the balance right,” said Treasurer Tim Pallas.

The government also clarified that the levy will not apply to homeowners leasing out all or part of their principal place of residence for a short stay.

“When a homeowner goes on holiday and someone else stays there temporarily, the levy does not apply,” the government said.

In addition, the new legislation will allow owners’ corporations to ban short stays in their developments if 75 percent of owners approve. Changes to the planning system will also give local councils the power to regulate short-stay accommodation.

Airbnb’s Response

Reacting to the reform, Michael Crosby, head of Public Policy at Airbnb Australia and New Zealand, said 7.5 percent was too high.

“It will jeopardise Victoria’s ability to attract tourists to areas lacking traditional accommodation and penalize families looking to travel as cost of living pressures continue to bite,” he told The Epoch Times in a statement.

He also said that while Airbnb supports sustainable and evidence-based regulation, the government’s announcement contradicts its clear pledge to create a straightforward framework for the short-stay accommodation sector.

“Airbnb has long advocated for a small levy, paid for by the guest at the time of booking, that goes into affordable housing. We need to build more houses, and this is a way to raise much-needed funds to do that.”

However, he supported the introduction of statewide frameworks rather than a council-by-council approach.

“The Victorian government is best placed to manage the sector rather than 79 Local Government Areas around Victoria coming up with their own approach.”

Minister for Housing Harriet Shing said, “The demand for housing has never been greater around Australia, and 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.”

The legislation exempts commercial accommodation such as hotels, motels, and caravan parks. The levy will only apply to stays of less than 28 days.

Transitional arrangements will be in place, and the levy will not apply to bookings made before January 1, 2025.