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Victoria Introduces Short Stay Accommodation Levy

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This article applies to organisations providing short stay accommodation.

Short Stay Levy Bill 2024 (Vic)

On 17 October 2024, the Short Stay Levy Bill (Vic) (the Bill) passed Victorian Parliament and is currently awaiting assent. The Bill will commence on 1 January 2025 and will apply to short stay bookings after that date.

Operationally Significant Changes

The Bill creates the Short Stay Levy Act 2024 (Vic). The most significant changes (from an operational perspective) include:

  • the imposition of a short stay levy in relation to the provision of short stay accommodation;
  • registration and notification requirements for those required to pay the short stay levy.

Further Information

Short stay accommodation refers to any premises (being the whole or part of any building or other structure or a caravan or any other vehicle) which can accommodate a person and is occupied for a continuous period of less than 28 days. Any booking of short stay accommodation made on or after 1 January 2025, will be subject to the short stay levy fee which is charged at the rate of 7.5% of the total booking fee (inclusive of GST, but excluding credit card fees and payment surcharges).

Liability for payment of the levy is imposed on providers of a booking platform (being a person who carries on a business that facilitates and accepts bookings for short stays, regardless of whether that platform facilitates payment), or on owners or renters who accept direct bookings for short stay accommodation. The Bill also requires licensees or other exclusive occupants of a premises who provide short stay accommodation through direct bookings to pay the short stay levy to the owner of the premises.

Providers must apply to the Commissioner of State Revenue (the Commissioner) to register their short stay accommodation as well as lodge returns for all bookings made within the return period. For those receiving total booking fees above $75,000 annually, the return period is every three months commencing 1 January, whereas for those receiving less than $75,000 per annum, returns must be lodged annually. The short stay levy is payable 30 days after the return period ends.

Exemptions

The Bill specifies exemptions to the short stay levy, with the primary exemption being where the premises is occupied as a primary place of residence. The Bill also states that short stay accommodation does not include commercial residential properties (such as hotels, motels and resorts), student accommodation provided by a higher education provider within the meaning of section 16-1 of the Higher Education Support Act 2003 (Cth), other accommodation such as residential care facilities within the meaning of the Land Tax Act 2005 (Vic), supported residential services within the meaning of the Supported Residential Services (Community Visitors) Act 2010 (Vic), and registered rooming houses and temporary crisis accommodation within the meaning of the Residential Tenancies Act 1997 (Vic). Accommodation provided by or in connection with a facility to accommodate any person who has a connection to the facility, including a contractor or employee or a person who is a client of the facility is also exempt from the levy.

In circumstances where a premises is not short stay accommodation and the premises are available for short stay bookings facilitated by a booking platform, the owner or renter must provide the booking platform provider with a declaration to that effect in accordance with section 21 of the Bill.

Please click here to access the full Bill.

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