New Short Stay Levy in Victoria

Effective from 1 January 2025, Victoria will introduce a Short Stay Levy on short-term rental properties to support local housing development. Below are the key points of this new policy:

Scope of Application

· Levy rate:

A fixed rate of 7.5% will apply to short stays of less than 28 days, based on the total booking amount (including cleaning fees and GST but excluding credit card surcharges).

· Exemptions:

o The primary residence of the property owner (e.g., when the owner rents out their home while on holiday).

o Hotels, motels, and similar accommodations.

o Specific accommodations for students, employees, or vulnerable groups.

Tax Obligations

· Platform Bookings: Booking platforms will be responsible for registration, reporting, and paying the levy.

· Direct Bookings: Owners or tenants must self-register and fulfill payment obligations.

Reporting and Payment Deadlines

· Businesses with annual revenue exceeding $75,000 will report quarterly, while others will report annually (by 31 December each year).

· Registration and levy payment processes will be managed through the State Revenue Office (SRO) website, with detailed guidance to follow.

Transition Arrangements

The levy applies only to bookings completed on or after 1 January 2025. Bookings completed before this date are exempt.

If you require further information or assistance with registration, please feel free to contact our office.