On 27 August 2024, the Short Stay Levy Bill 2024 (Vic) was introduced into Victorian Parliament.

The bill imposes a new levy or tax of 7.5% of the booking fee (including GST) on both short stay service platforms and others who offer direct bookings of short stay accommodation.

The levy applies to stays less than 28 days but excludes a homeowner’s principal place of residence or commercial residential premises (i.e. a hotel, motel etc).

The new levy will take effect from 1 January 2025 for bookings made on or after that date.

Bookings taken before 1 January 2025 will not be subject to the levy – even if the stay is after that date.

Short stays in a natural person owner or renter’s principal place of residence should be exempt from the levy. Likewise commercial residential premises will also be exempt.

Platforms (including off-line platforms) that offer short stay accommodation will require to be registered and collect the levy on behalf of property owners.

However, if a property owner directly offers short stays, it will need to register and make annual or quarterly returns of the levy.

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Please contact us with assistance with advice on the new tax or any other State Tax issues.

Phil Broderick
Principal
T +61 3 9611 0163 l M +61 419 512 801
E pbroderick@sladen.com.au

Nicholas Clifton
Principal Lawyer
T +61 3 9611 0154 | M +61 401 150 955
E nclifton@sladen.com.au

Meera Pillai
Associate
T +61 3 9611 0179
E mpillai@sladen.com.au