Legislation for Victoria’s Nation-First Levy – which some have dubbed the “Airbnb tax”, will begin on 1st January 2025.
The Victorian Government’s 7.5% short stay levy was announced in September 2023 as part of its Housing Statement which will apply from 1st January 2025.
The planned levy would apply to short stay accommodation platforms’ total booking revenue. The government has yet to introduce the legislation into parliament, meaning the exact policy specifications are uncertain at the present time.
The Housing Statement specified that :
- revenue from the short stay levy would be paid to Homes Victoria with 25% of funds to be invested in regional Victoria.
- local council charges on short stay accommodation would be removed.
In short, local councils and Owners Corporations will be given the power to limit or outright forbid short-term rental accommodation like Airbnb and Stayz under a new government bill. Property owners leasing out their own primary residences will be exempt from the levy and restrictions, as well as hotels, motels and caravan parks.