The Victorian Government is moving forward with its controversial decision to impose a 7.5 per cent tax on short-stay accommodation bookings, affecting popular platforms such as Airbnb and potentially impacting holiday costs.
The Short Stay Levy Bill, scheduled to come into effect from January 1, 2025, will raise the cost of all short-stay accommodation bookings across Victoria, with the government asserting it will help fund new housing initiatives.
Furthermore, the bill grants local councils the authority to prohibit short-stay accommodation entirely and regulate the duration for which properties can be listed on short-term rental platforms.
With just five months remaining until the tax’s implementation, the government has yet to provide crucial operational details, leaving the tourism sector in a state of uncertainty and scrambling to prepare for potential impacts.
State Member for Euroa Annabelle Cleeland said the tax would fail to address the fundamental causes of Victoria’s housing-affordability crisis.
“This tax is doing nothing to ensure more homes are being built in areas that need it most and instead punishes regional communities reliant on tourism,” she said.
“Under Labor, Victoria already has the highest property taxes in the nation, which are driving away the investment needed to get more homes built.
“Now they are hell-bent on increasing the cost of short-term rentals in regional tourist spots.
“Instead of helping the issue, this tax is all about bailing out Labor’s Homes Victoria agency, which is $185.6 million in the red.”
In response to these criticisms, a government spokesperson defended its housing policy, emphasising its track record of delivering new social and affordable homes across the state.
“We’ve delivered thousands of new social and affordable homes across Victoria with thousands more in the pipeline,” the spokesperson said.
“The Liberal-National Coalition cut millions of dollars in social housing funding last time they were in government and continue to try to block new homes.”
Ms Cleeland highlighted the inadequate housing progress in specific regions. She noted that despite high demand, the Benalla district had added only 32 new social houses since 2018, when it was listed in 398 priority access applications.
Similarly, Mitchell Shire has seen just 30 new properties, despite Seymour and Broadford districts featuring in over 800 priority access applications combined.
“Despite millions of dollars being thrown around as part of Labor’s so-called ‘big build’, areas like Benalla and the Mitchell Shire have seen inconsequential improvements when it comes to housing stock,” she said.
“For areas without Big Build projects like the Strathbogie Shire, there are even less properties available than there were in 2018.
“Labor cannot manage money and Victorians are paying the price.”
In response to these criticisms, a government spokesperson said significant investments were being made in regional housing.
They highlighted a $58.5 million commitment to social and affordable housing in the Benalla and Mitchell Shire areas alone, with 154 homes already completed or under construction.
“Regional and rural Victorians know all too well how tough it is to find a rental home, and this shortage is making it tougher for businesses, schools, hospitals and childcare centres to recruit the workforce they need to meet demand,” the spokesperson said.
“The short-stay levy is an important way to fund new housing, including across rural and regional Victoria, and will also encourage property owners to consider providing year-round rental accommodation to locals rather than short-stay arrangements.”