Short Stay Accommodation Levy

If you Airbnb or short term (holiday) let your property, you may need to pay the short stay levy if you accept bookings for short stays in your Victorian property.

From 1 January 2025, you may have to pay the short stay levy if you accept bookings for a stay in Victorian accommodation that is less than 28 consecutive days, and charge a fee for the stay.

The levy is a flat 7.5% of the total booking fees paid, including fees and charges such as cleaning fees and GST, where applicable. The total booking fee does not include credit card fees.

The levy will not apply to a short stay in a property that is someone’s principal place of residence (PPR), whether they own or rent the property. For example, if you list your home for short stay bookings while you’re away on holidays, any short stays that guests book and complete in your home are not liable for the levy.

The levy will apply to a short stay in accommodation such as an entire house and apartment, a private room in a house (where the house is not a person’s PPR), a granny flat or other separate residence (even if located on the same land as a person’s PPR) and a tiny home parked on land. It will not apply to a stay in a hotel, motel or similar.

The levy must be paid by the booking platform where the booking is made via the platform, or by the property owner or tenant where the booking is accepted without a platform. The levy will not apply to bookings made prior to 1 January 2025.

Revenue raised by the short stay levy will fund Homes Victoria, with 25% of funds to be invested in regional Victoria.

If you have any questions about this Short Stay Levy or any other tax don’t hesitate to contact us at STS Accounting.