A new tax set to come into effect in 2025 will see Aussies who own and stay in Airbnbs hit with a series of extra charges.
The state government’s controversial 7.5 per cent tax on short stay bookings, which passed parliament in November, will come into effect on Wednesday.
Around 50,000 properties that provide short-term accommodation services will be hit with the additional cleaning and GST charges.
Some short-term accommodation providers will be slugged $26 or $182 a week for a property that charges renters $350 per night.
Properties located in areas frequented by tourists such as the Mornington Peninsula in Victoria’s south will be hit harder by the new tax.
Rentals that charge visitors up to $500 a night will be charged $37 or $262 a week.
The tax will be rolled out on New Year’s Day because the levy also includes the cost of cleaning, GST, service and admin fees.
The new law will only apply to short-stay rentals where guests reside in the properties for less than 28 days.
Airbnb owners in Victoria will be hit with a new tax in the New Year making the cost of going on holidays more expensive for Aussies (stock image)
Local councils across Victoria will now be able to limit the number of days a short-term accommodation can be made available to renters.
Homeowners, who lease their primary residence as a short-term stay, will not be hit with the tax.
The tax will not include amounts charged for using a particular payment method such as credit card surcharge fees.
The levy has been slammed by tourism officials, who argue the move will deter visitors from coming to Victoria during the holiday season.
Victorian Tourism Industry Council Chief Executive Felicia Mariani said the new law is confusing and will make short term accommodation bookings unaffordable.
‘With only six weeks from the time the legislation was passed in mid-November to when the levy comes into effect, the industry has really struggled to come to grips with the complexities of the guidelines for collecting the tax,’ Ms Mariani told the Herald Sun.
‘It has also come to light through these guidelines that this is not merely a 7.5 per cent tax on the cost of the accommodation.’
Deputy Liberal leader and former tennis star Sam Groth said taxpayers will cop the brunt of the new tax during a cost of living crisis.
‘Every dollar spent on Labor’s Airbnb tax is one fewer going into Victoria’s tourism sector, which supports local jobs and communities across the state,’ Mr Groth said.
Around 50,000 properties that provide short-term accommodation services in Victoria will be hit with the tax from New Year’s Day (pictured, the Mornington Peninsula)
Figures by the state government revealed the levy will help generate $60million in revenue each year.
The funds are set to be handed to Homes Victoria, which is the Victorian government’s social housing and homelessness agency.
A Victorian government spokesman told Daily Mail Australia the the tax would help increase the supply of housing by encouraging investors to list properties in the long-term rental market.
‘This is an important step towards making more properties available for long-term rental – and giving Victorian families more opportunities to find a home,’ the spokesman said.
‘Brad Battin and the Liberals don’t care about helping Victorian families find a home, and they don’t care about delivering more funding for social housing.’
