The Victorian Government’s recent Housing Statement
announced Australia’s first short-stay property tax.
The additional tax, which is scheduled to come into effect from 1 January 2025, is expected to generate $70 million
plus annually. The Short Stay Levy will be set at 7.5% of the short stay accommodation platforms’ revenue – so, a few days in
Melbourne at $850 will cost an extra $63.75 taking the stay to $913.75.
Airbnb’s ANZ Country Manager Susan Wheeldon however says that “short-term rentals in Victoria make up less
than one percent of total housing stock. Acute housing issues existed long before the founding of Airbnb, and targeting these properties is
not a long term solution.”
For Victorian investment property owners this comes after a temporary land
tax surcharge
from the 2024 land tax year and for those keeping a property vacant, an increase to the absentee owner surcharge rate from 2% to 4%
including a reduction in the tax-free threshold from $300,000 to $50,000 (for non-trust absentee owners).
Some Councils already impose a surcharge on short stay accommodation.
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We’ve all seen it: slick social media reels, perfectly filtered property gurus, and bold AI influencers promising fast wealth. But in Australia’s regulated finance and property landscape, chasing that hype can lead to more heartbreak than haul.
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