Login
iscover
The Short Term Accommodation Association of Australia (STAAA) has started a petition in response to the Victorian government’s 7.5 per cent levy on Airbnb-style rentals.
Sponsored by Libertarian MP David Limbrick, the petition claims that the proposed bill could “[threaten] the livelihood of thousands of short-term rental accommodation (STRA) owners and operators, and the broader tourism industry”.
If passed, the Short Stay Levy Bill would introduce a 7.5 per cent tax on all short-stay accommodation bookings, which have proliferated through sites like Airbnb and Stayz.
Commercial accommodation providers like hotels and motels will be exempt from the levy, as will home owners who rent out part or all of their principal place of residence for a short stay.
Furthermore, the bill seeks to permit owners’ corporations to ban short stays in their building if 75 per cent of owners approve the decision. It would also give local governments the power to create their own short-stay regulations.
The changes would take effect from 1 January 2025, and 100 per cent of revenue would be given to Homes Victoria for the construction and maintenance of affordable housing.
In its petition, the STAAA raised four primary concerns with the proposed bill:
- Changes introduced without sufficient public consultation, and represented a surprise departure from the government’s initial announcement in September 2023.
- The 7.5 per cent levy will increase costs for travellers and burden property owners “already paying substantial taxes”.
- Inconsistent regulations across Victoria will grant “excessive powers” to local governments and owners’ corporations.
- Local businesses and jobs will suffer under the new legislation.
The petition comes in the wake of a public statement by Airbnb expressing “disappointment” at the bill and calling for a reduction to the levy.
Keiran Craig-Jones, executive director of STAAA, stated: “The Short Stay Levy Bill 2024 represents a misguided approach that overlooks the real impact on our industry, the local economy, the Victorian visitor economy and overall broader Victorian tourism industry.”
“The proposed tax and restrictions could have severe consequences for thousands of STRA operators, particularly individuals such as retirees who depend on this industry. Furthermore, it threatens to harm local communities by potentially causing job losses and reducing local spending,” Craig-Jones said.
Seiko Ma, managing director of Bodhi Tree Group, warned that the new bill would increase operational costs for STRA providers and prevent the sector from competing with other accommodation types.
“This bill poses a direct threat to the stability of Victorian short-term industry,” she said.
“It is vital for the Victorian members of Parliament to recognise the potential harm and engage with stakeholders to find a more balanced solution.”
You are not authorised to post comments.
Comments will undergo moderation before they get published.