Victorian Government Introduces New 7.5% Short Stay Levy Bill
On 27 August 2024, the State Government introduced the Short Stay Levy Bill 2024 (Vic) (Bill) into Victorian Parliament.
The Bill which is set to take effect from 1 January 2025 (Commencement Date), imposes a new levy of 7.5% of the total booking fee (inclusive of GST) on both short stay service platforms and other providers who offer direct bookings of short stay accommodation.
The new levy will apply to short-term accommodation of less than 28 days. However, of benefit to some businesses, commercial accommodations such as hotels, motels, and caravan parks appear to be exempt from the levy, as should homeowners renting out all or part of their primary residence.
Bookings that take place prior to the Commencement Date will not attract the new levy, regardless of whether the stay is for after this date.
Importantly, under the new levy Platforms (including off-line platforms) that offer short stay accommodation will be required to be registered and collect levies on behalf the providers.
If you have any questions or require advice, please contact:
Alasdair Woodford
Principal
T: 03 5225 5217| M: 0436 456 144
E: awoodford@ha.legal
Joseph Flanagan
Senior Associate
T: 03 5226 8504
E: jflanagan@ha.legal
Ben Smith
Lawyer
T: 03 5225 5262
E: bsmith@ha.legal
