Victorian Government Unveils New Amendments To Short-Stay Levy Legislation

Under a new government bill, local councils and owners' corporations will gain the authority to limit or completely ban short-term rentals like those offered on Airbnb and Stayz. However, property owners who rent their primary residences will not be subject to the levy or these new restrictions.

These new powers will be introduced alongside a proposed 7.5% levy, which is expected to take effect on January 1.

The Victorian government's short-stay levy bill will empower local councils and owners' corporations to prevent residents from using platforms like Airbnb for short-term rentals. These reforms, supported by the Victorian Greens, will allow councils to impose restrictions ranging from limiting the number of short-term rental accommodations in their area to imposing a complete ban. Additionally, owners' corporations can prohibit short-term rentals within their developments if 75% of owners agree.

Shadow Treasurer Brad Rowswell expressed doubts about the effectiveness of the new short-stay rental policies, arguing that increased taxation won't solve housing issues and may drive people out of the property market, making homes even less affordable. He pledged that the opposition would repeal the policy if elected. While government estimates count over 36,000 short-term rental properties in Victoria, a report commissioned by Airbnb claims nearly 50,000 and argues that short-term rentals don't consistently affect housing affordability despite local complaints in tourist areas.

Tourist towns in Victoria, including popular destinations like Melbourne's inner suburbs and the Mornington Peninsula, are experiencing a surge in short-term rentals. This trend has significantly impacted the availability of Melbourne long-term rental properties, with a high percentage of homes being dedicated to platforms like Airbnb. The increased focus on short-term rentals has fueled concerns over the scarcity of affordable housing for locals. This has sparked a debate about balancing support for tourism with ensuring sufficient long-term housing options.

Victorian Greens spokesperson Gabrielle de Vietri told ABC Radio Melbourne that new housing changes result from lengthy negotiations with the government. She explained that these changes aim to prevent property investors from hoarding homes for profit and buying homes to make money. Currently, 125,000 people are waiting for public housing, and we are facing a severe housing crisis.

The tourism and short-stay rental industry have criticized these changes. Stayz spokesperson Eacham Curry argued that the new regulations would not help the government's housing goals and might create unnecessary complexity that could hurt tourism. He noted that short-term rentals are not the root cause of housing issues and that the new rules might negatively impact local communities and economies.

Victoria Tourism Industry Council chief executive Felicia Mariani expressed concerns about the industry's lack of consultation and the limited time to implement the new regulations. She stressed the need for more detailed information and better collaboration to implement the new tax effectively and fairly.