Body Corps to Have the Power to Ban Airbnb, Stayz Under New Victorian Levy

The Victorian Parliament is scheduled to discuss the Short Stay Levy Bill 2024, which was presented on Aug. 27. This bill proposes a 7.5 percent levy on short-stay accommodation bookings, including those made through platforms like Airbnb and Stayz, starting on Jan. 1, 2025. The Allan Labor government argues that this measure will help alleviate the housing crisis by making more properties available for long-term rentals. According to a government statement, there are approximately 63,000 short-stay accommodation options in Victoria, with nearly half of them in regional areas. Of these, around 50,000 are whole homes that are not accessible for long-term rental. The revenue generated, estimated at $60 million annually, will be directed to Homes Victoria to support the construction and upkeep of social and affordable housing, with 25 percent of the funds allocated to regional Victoria. Treasurer Tim Pallas emphasized the importance of this initiative in increasing the availability of properties for long-term rental. The government clarified that the levy will not be applicable to homeowners renting out their primary residence for short stays. Additionally, the new legislation will empower owners’ corporations to prohibit short stays in their developments with the approval of 75 percent of owners. Local councils will also be granted authority to regulate short-stay accommodations through changes to the planning system. In response to the reform, Airbnb raised concerns about the 7.5 percent levy being too high and potentially deterring tourists from areas with limited traditional accommodations. However, they expressed support for sustainable regulation and emphasized the need for more affordable housing. Minister for Housing Harriet Shing highlighted the growing demand for housing in Australia and the role of the short-stay levy in promoting social housing and encouraging permanent rental accommodation. The legislation excludes commercial accommodations such as hotels, motels, and caravan parks, applying only to stays of less than 28 days. Transitional arrangements will be implemented, and the levy will not impact bookings made before Jan. 1, 2025.

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