A bill introduced to Parliament on Tuesday August 27 will aim to increase social and affordable housing and make more properties available for long-term rentals.
The Short Stay Levy Bill 2024 is part of the Housing Statement, which was shaped by consultations with local councils, industry and tourism bodies.
If passed, it will set a 7.5 per cent levy from January 1 2025 on short stay accommodation bookings of over 28 days on platforms like Airbnb and Stayz.
The revenue raised is predicted to be $60 million and will go to Homes Victoria to build social and affordable housing.
Treasurer Tim Pallas said the dual purpose of the bill would create better outcomes for those in need of accommodation.
“We’re unlocking more homes for real rentals, and unlocking more funding for social housing.”
Housing Minister Harriet Shing said it would help tackle the housing crisis.
“The Victorian short stay levy will support the delivery of more social housing and encourage more people to use their properties for permanent rental accommodation across the state.”
Commercial accommodation like hotels and caravan parks are exempt.
The levy will not apply to bookings made prior to the implementation date.
Short stay rentals reduce the number of properties available for longer term accommodation for families who need a place to live. In Victoria, there are around 63,000 short stay accommodation places.
