Short-term rental providers – did you know you might be getting a new tax?
Who and what?
Under the Victorian Government’s proposed amendments to the Short Stay Levy Bill (SSL Bill), property investors with short-term rentals on platforms like Airbnb will face a new 7.5% tax starting 1 January 2025.
Owner’s corporations can also ban short-term rentals if 75% of members agree.
Additionally, councils will be allowed to regulate or ban short-term rentals and impose registration fees.
The levy will not apply:
- To a homeowner leasing out all or part of their principal place of residence (for example, leasing the property for a short stay when they go away on holiday).
- Commercial accommodation such as hotels, motels and caravan parks; and residentialhousing such as student accommodation and retirement villages.
When?
The levy will be applied to each booking for a stay of less than 28 days made on or after 1 January 2025.
How?
The Commissioner and the State Revenue Office (SRO) will administer the levy.
Why?
To encourage property owners to shift from short-term to long-term rentals. This aims to lower rental prices, reduce vacancy rates, and improve the availability and affordability of rental housing across Victoria.
More details will be available once the Victorian Government passes legislation in late 2024 so watch this space!
This is general advice only and has not been prepared with your situation and needs in mind. For individual and personalised advice, we highly recommend that you seek out proper professional advice from your lawyer.
