The Victorian Government is taking significant steps to regulate short stay accommodation with the introduction of new reforms aimed at curbing the impact of platforms like Airbnb and Stayz on the housing market. Set to come into effect from 1 January 2025, the 7.5% short stay levy is part of a broader plan to address the strain short-term rentals are placing on housing availability for long-term residents. 

What does the Short Stay Levy mean for hosts?

If you are renting out accommodation in Victoria for less than 28 consecutive days and charging a fee, you may be liable to pay the 7.5% levy on total booking fees. This includes any additional charges such as cleaning fees and GST (where applicable).  

The levy will not apply when: 

• Bookings are of 28 days or more  
• owners are leasing out their own primary residences. 

Registration and lodgement requirements 

Hosts subject to the levy will be required to register and lodge their levy payments either quarterly or annually, depending on their short stay booking turnover from the previous year. The Victorian Government is currently developing a system for these registrations and lodgements, which is expected to be available in early 2025, before the first lodgements are due. 

New powers for local councils and owners corporations 

The 7.5% levy will replace local council charges on short stay accommodation. 

Under these new reforms, local councils and owners corporations will be empowered to restrict or even ban short stay rentals in their areas. This gives councils the ability to control the number of short stay properties, the duration they can be listed for, or enforce an outright ban if necessary.  

Similarly, owners corporations will be able to ban short-term rentals within their developments if 75% of owners agree. 

Looking ahead 

As the short stay market continues to grow, these reforms represent a significant change for hosts and tourist heavy communities. If you’re operating a short stay property in Victoria, it’s important to familiarise yourself with the new rules and ensure you’re ready for the changes coming in 2025. 

For more information on the short stay levy and upcoming registration systems, keep an eye on government updates as the Victorian Government finalises the details ahead of the rollout.  

We will provide updates as the Victorian Government is set to pass this legislation late 2024.