Short-stay holidays are about to get more expensive in Victoria.
From today, the short-stay levy will apply to short stays in Victorian properties, including properties listed on sites like Airbnb and Stayz.
This means anyone intending to stay at a property for less than 28 consecutive days will have to pay the levy.
The levy flat is 7.5% of the total booking fees paid including fees and charges like cleaning fees and GST, where applicable.
For properties that cost about A$500 a night, holidaymakers will be charged an additional $40 a day or more than $260 for the week.
The levy will apply to all short stay properties that are not someone’s principal place of residence (PPR).
In September 2024 Treasurer Tim Pallas said revenue collected from the levy will fund Homes Victoria, with 25% of the funds being invested into regional Victoria.
‘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,” he said.
“When residential properties are used for short stay accommodation they cannot be made available as longer-term accommodation.”
Owners or tenants that accept short stay bookings without a booking platform can register for the short stay levy through an online portal.