Airbnb properties that are the owner’s primary place of residence will not be hit with Victoria’s 7.5 per cent short-stay levy when it comes into effect in January.
The Allan government’s short-stay levy bill, which will be introduced to parliament on Tuesday, will also give owners’ corporations and local governments stronger powers to limit or ban short-stays. But the industry fears property owners could now be double-hit with council taxes.
Victoria’s statewide Airbnb levy will come into effect on January 1 next year. Credit: Joe Armao
The government announced the levy in last September’s housing statement to respond to a shortage of housing supply and an affordability crisis.
On Tuesday, Treasurer Tim Pallas announced that principal places of residence would not be liable for the 7.5 per cent levy when it comes into effect on January 1, 2025.
So long as a tourist books the accommodation before New Year’s Day, their trip will not be caught by the levy. The property owner, not the tourist, is charged. However, this cost is likely to be passed onto holidaymakers.
The government said there were around 63,000 short-stay properties in Victoria, almost half of which were in the regions. Almost 50,000 of those places were entire homes that could be on the long-term rental market instead.
Pallas said the purpose was to bring more housing onto the long-term rental market, but he could not say how many properties were expected to shift. Hotels will be exempt.
Revenue from the levy, expected to raise about $60 million a year, will go to Homes Victoria to support the building and maintenance of social and affordable housing.
“So it’s not like the pricing mechanism is going to be destructive of the industry, but it is important that we recognise and that we give a signal to the market that our priority is to get people into homes, and long term secure rental accommodation is important,” Pallas said.