Report on Victoria Short-Stay Tax!

The Short Term Accommodation Association Australia (STAAA) is committed to keeping our members informed about the latest developments affecting our industry.

Recently, a report has been released which examines the implications of implementing a short-stay tax/levy in Victoria.

The report provides an analysis of the potential impacts of such a tax/levy on both the short-stay accommodation market and the broader Victorian economy. It explores various scenarios and models to understand how the levy could influence market dynamics, pricing, and the competitive landscape.

Some key findings from the report include:

1. Market Impact: The introduction of a levy will lead to increased costs for short-stay operators, potentially affecting pricing strategies and demand.
2. Economic Considerations: The report underscores the importance of understanding the broader economic context, including potential impacts on tourism, hospitality, and visitor economy. It suggests that while the levy could provide financial benefits, it is crucial to assess its effects on the overall economic ecosystem.

Background

In September 2023, the Victorian Government announced the 7.5% short stay levy as part of its Housing Statement, to apply from 1 January 2025. The planned levy would apply to short stay accommodation platforms’ total booking revenue. The government has not yet introduced legislation into parliament, meaning the exact policy specifications are uncertain.

STAAA’s Response and Next Steps

At the Short Term Accommodation Association Australia (STAAA), we recognise the importance of staying informed about such developments and their potential implications for our members. We are committed to advocating for fair and balanced policies that support the growth and sustainability of the Australian short-term accommodation industry.

We oppose any discriminatory levies or taxes targeting our industry exclusively, and we do not support nightly caps, as there is insufficient evidence that they benefit any parties. We advocate for a fair and equitable approach that takes into account the interests of all stakeholders.

We support statewide short-term rental accommodation (STRA) legislation, regulations, and a statewide registration scheme similar to what has recently been introduced in Western Australia together with a code of conduct and safety measure as those currently in place in NSW. Such measures ensure consistent standards and practices across the industry, benefiting both operators, guests, communities and local government areas.

Without a statewide registration scheme, only assumptions can be made regarding the number of STRA properties. Accurate data on the number of STRA properties and their impacts must be the first step in introducing any new regulations.

We encourage our members to review the full report mentioned above which is available via our members portal here: https://staaa.org.au/members/educational-resources/#reports Please ensure you are signed in to access the report which is located in our Members – Educational Resources – Reports page.

As always, the Short Term Accommodation Association Australia (STAAA) will continue to engage with policymakers and stakeholders to represent the interests of our members and ensure that any new regulations or taxes/levies are implemented in a way that supports the vitality of our industry and the greater ecosystem which includes the tourism industry and our visitor economy.

Together, let's stay informed and proactive in shaping the future of short-term accommodation in Australia.

If you are not already a member of the Short Term Accommodation Association Australia (STAAA) you can join here: https://staaa.org.au/sign-up/

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