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Airbnb hits out at Victorian government over ‘damaging’ new short-term rental levy

3 September, 2024

Airbnb has hit out against the Victorian government’s recently introduced tax on short-term rental accommodation providers.

Treasurer Tim Pallas pushed forward with the levy last week, which imposes an additional 7.5 per cent charge on trips booked via Airbnb and Stayz from next year.

In response, Airbnb placed a full-page advertisement in metropolitan newspapers today, arguing that the levy would “damage tourism and increase costs” for Victorians.

Under the changes imposed by the government, councils will also be given new powers to limit or ban short-stay property owners in a policy backflip.

The policy is designed to free up housing by encouraging investors to change some of the estimated 50,000 short-stay properties in Victoria into long-term rentals.

Airbnb said the “new triple tax” would result in higher holiday costs, fewer accommodation choices, and less income for local businesses. 

“Our hosts are ordinary mum and dad Victorians who are just trying to make some extra income,” Airbnb head of policy Michael Crosby told 9News last week.

Speaking at a press conference today, Health Minister Mary-Anne Thomas said she didn’t accept that the levy would damage the industry.

“After a lot of consultation with local government, tourism operators, and industry, we’re looking to implement a 7.5 per cent levy on short stay accommodation,” she said.

“Victorians know right now it’s really hard to find an affordable rental. We think this strikes a right balance in ensuring we have accommodation available for workers, including those in destination towns.”

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