The government of Victoria has proposed the Short Stay Levy Bill 2024 in the state parliament.
This bill aims to implement a 7.5% tax on short-term accommodation bookings (less than 28 days), effective from 1 January 2025.
A short stay in short stay accommodation is completed on the date on which a person is required under the terms of the short stay booking to vacate the short stay accommodation, regardless of whether the person:
(a) Vacates the short stay accommodation on that date or on an earlier date; or
(b) Occupies the short stay accommodation during the period of the short stay booking.
However, a short stay in short stay 20 accommodation is not completed if the short stay booking is cancelled and the total booking fee is waived, credited, or refunded.
If a short-stay booking is made through a booking platform, the booking platform provider is liable to pay the levy imposed on the five short stays.
The levy would apply to reservations made through online platforms. However, commercial accommodations such as hotels, motels, and caravan parks, along with homeowners renting out part or all of their primary residence, would be exempt from this tax.
