Victorian accommodation just got more expensive with the short stay levy

When does the short stay levy apply?

From 1 January 2025, the 7.5% short stay levy applies to Victorian accommodation bookings where the stay is for less than 28 consecutive days. The short stay levy is charged on the total booking fee including:

• GST;
• cleaning charges; and
• other fees and charges (excluding credit card surcharges).

Exclusions from the levy

Certain properties are excluded from the levy including motels, hotels and hostels and other types of commercial residential accommodation within the meaning of the GST legislation. Principal places of residence (PPR) are also excluded, unless the accommodation relates to secondary residences and dwellings located on the same property as the PPR such as granny flats, caravans, and tiny homes.

Who is responsible for paying the levy?

The responsibility for paying the short stay levy depends on how the booking is made:

• Direct Bookings: If the property owner directly accepts bookings, they are responsible for paying the levy.
• Through Booking Platforms: If a booking is made through an online platform, e.g., Airbnb or Stayz, the platform is responsible for collecting and paying the levy.
• Tenant Subletting: If a tenant rents a property under a residential rental agreement and subsequently sublets it for short stays, the tenant is responsible for the levy unless they use a booking platform.

What needs to be done?

Annual returns are required if the total booking fees are $75,000 or less per annum, otherwise returns must be lodged quarterly. The returns must be lodged along with payment of the levy within 30 days of the end of the relevant period.

Registration, lodgement and payment are to be done via the SRO’s online portal with the SRO now accepting registrations. For further information, visit the SRO website at https://www.sro.vic.gov.au/short-stay-levy

If you have any questions regarding the above, please contact your MGIDC advisor.