Victoria’s Short Stay Levy: Changes for Owners Corp

The Victorian Government has introduced a new short-stay accommodation levy under the Short-Stay Levy Act 2024 (Vic). The levy applies to short-stay bookings made on or after 1 January 2025, and forms part of a broader housing affordability initiative.

The levy is set at 7.5% of the total accommodation fee and is payable on short-stay accommodation of less than 28 consecutive days. This includes most bookings made via platforms such as Airbnb, Stayz and Booking.com, as well as stays arranged privately.

Revenue raised through the levy will contribute to funding social and affordable housing across Victoria, including initiatives in regional areas.

Which Properties Are Affected?

The levy applies to residential properties used for short-stay accommodation that are not the owner’s or tenant’s Principal Place of Residence (PPR).

This includes:

investment properties;
holiday homes;
apartments or units let out for short stays; and/or
any property used for short-term accommodation of less than 28 consecutive days.

Short-stay accommodation in a property that is the owner’s or tenant’s registered PPR is generally exempt.

How Will the Levy Be Collected?

If a booking is made through a digital platform (such as Airbnb or Stayz), the platform is responsible for collecting and remitting the levy to the State Revenue Office (SRO).
For direct bookings, the accommodation provider must collect the levy from guests and remit it to the SRO.

New Powers for Owners Corporations

Reforms introduced alongside the levy give Owners Corporations (OCs) greater ability to regulate short-stay accommodation within apartment and townhouse complexes.

OCs may:

adopt rules restricting or prohibiting short-stay accommodation
enforce those rules through the usual Owners Corporation mechanisms
act even where there has not been nuisance or disturbance, provided the rules are validly adopted

Any restrictions must be made by special resolution and comply with existing strata-law requirements to be enforceable.

What Property Owners Should Consider

Property owners who offer, or are considering offering, short-stay accommodation should:

Confirm whether their property qualifies as a PPR.
Determine whether bookings will fall under the ‘less than 28 consecutive days’ definition.
Understand how the levy will be collected (platform vs direct bookings).
Review any Owners Corporation rules that may restrict short-stay use.
Consider updating listing information and pricing to account for levy obligations.

Key Points to Remember

Levy rate: 7.5% of the total accommodation fee.
Applies to: stays less than 28 consecutive days.
Effective date: applies to bookings from 1 January 2025.
Exemptions: generally applies only to properties that are not the operator’s Principal Place of Residence.
Collection: via digital platforms, or directly by the accommodation provider.

For tailored advice on these changes, please get in touch with to your Aintree Group Legal advisor.

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.