The Allan Labor Government’s controversial 7.5 per cent Holiday and Tourism Tax was passed in the Legislative Assembly this week, making the proposed tax one step closer to becoming a reality.
The Short Stay Levy Bill will apply to all bookings made from 1 January 2025, increasing the cost of every short stay accommodation booking, including farmhouse stays, Airbnb rentals, and other crucial accommodation options for tourists in regional Victoria.
In addition, the Bill is also set to allow local councils to ban short stay accommodation completely and set the number of days a property can be listed on short-term accommodation sites.
The Nationals’ Member for Euroa, Annabelle Cleeland, said it was a disappointing outcome for all Victorians.
“The Liberals and Nationals oppose this tax and will continue to fight against it in the Legislative Council,” Ms Cleeland said.
“We stand with holiday makers and Victoria’s tourism industry who have warned that this tax will decimate Victorian tourism, do further damage to investor confidence and cost all Victorians more.”
Earlier in the week, the State Opposition invited Ashlee Morton, General Manager of Accessible Accommodation, to speak about the consequences of Labor’s tax on Victorians with disabilities.
In Ashlee’s words, “Accessible short-term rental properties are essential for ensuring that people with disabilities can travel comfortably and enjoy the same opportunities as others.”
“Few hotels cater to higher physical needs, and a short-stay property gives us flexibility to save money with self-contained cooking facilities. This new tax poses a serious threat to the availability and affordability of accessible accommodations.”
While the Victorian Liberals and Nationals oppose this bill in full, they are urging the Government to consider introducing exemptions for Victorians like Ashlee who rely on short stay accommodation.
“This tax is doing nothing to ensure more homes are being built in areas that need it most and instead punishes regional communities reliant on tourism,” Ms Cleeland said.
“Under Labor, Victoria already has the highest property taxes in the nation, which are driving away the investment needed to get more homes built.
“Now they are hell-bent on increasing the cost of short-term rentals in regional tourist spots.
“Instead of helping the issue, this tax is all about bailing out Labor’s Homes Victoria agency, which is $185.6 million in the red.
“Labor cannot manage money, and Victorians are paying the price.”
