The Short Stay Levy now applies in Victoria. If you are an accommodation booking platform or an owner or tenant who provides short stay accommodation without the use of a booking platform (i.e. taking direct bookings), you will need to register for the levy with the State Revenue Office by the end of the first period in which you are liable for the levy. This may fall on 30 April 2025 if you collect booking fees of at least $75,000.00 per year.

Register here: Register for the short stay levy | State Revenue Office

The Levy
From 1 January 2025, a short stay levy applies to short stay accommodations in Victorian residential properties under the Short Stay Levy Act 2024. The levy is set at 7.5% of the total booking fees paid (inclusive of fees and charges such as GST and cleaning charges but excluding credit card fees) and applies to bookings of less than 28 consecutive days. The 28-day consecutive period starts from the date of permission to occupy and ends at the date of requirement to vacate.

Any stay longer than 28 consecutive days will not be considered a short stay and will not be subject to the short stay levy.

Exemptions
 The following types of properties are exempt from the short stay levy:

  • premises used as a Principal Place of Residence by the owner or renter
  • commercial residential premises (i.e. hotels, motels, hospitals)
  • other specified premises (i.e. residential care, retirement villages, student accommodation

The short stay levy applies to booking platform providers where bookings are made via the platform and property owners and renters who accept direct bookings. If you fall within one of these categories, you must register for the short stay levy with the Commissioner and lodge returns regularly to pay the levy at the link provided above.

If you have any queries regarding any of the matters discussed above, please do not hesitate to contact NextGen Legal on (03) 9039 2142 or info@nextgenlegal.com.au