Alright, let’s talk about Victoria’s new Airbnb tax (or Short Stay Levy – in government legal speak)
Look, no one wakes up thinking, “Oh boy, I can’t wait to read about levies today!” But if you’ve got a short-term rental in Victoria, this one’s for you.
So, grab a cuppa, and let’s break it down.
🏡What’s the Short Stay Levy?
Imagine you’re running an Airbnb, renting out your granny flat, or listing your beach shack for quick stays. From 1 January 2025, the Victorian Government is bringing in a 7.5% levy on short stays (less than 28 consecutive days).
It’s calculated on the total booking fee, including cleaning fees and GST, but excluding credit card fees (because, of course, we need to keep at least one fee off the list!).
💰Who’s Paying This Thing?
- If you use a booking platform (e.g. Airbnb, Stayz, etc.), they handle it for you. No sweat!
- If you take direct bookings (like if a mate of a mate books with you via Facebook or email), you’re responsible for coughing up the levy.
🏖️Who’s Off the Hook?
Good news! You’re exempt if your property is your Principal Place of Residence (PPR). So, if you rent out your home while you’re on holiday, you don’t pay the levy. Other exemptions include hotels, motels, hostels, student accommodation, employee housing, and crisis accommodation.
- So, What Do You Actually Need to Do?
If you use a booking platform:
- Sit back, relax. They handle it all.
If you take direct bookings:
- Register for the levy via the State Revenue Office Victoria (SRO) website.
- Track your booking fees.
- If your total booking fees are more than $75,000 per year, lodge a return with the SRO, and pay the levy quarterly.
- If they’re $75,000 or less, lodge a return with the SRO, and pay the levy annually.
If you think your property is exempt:
- Fill out an exemption declaration and send it to the booking platform (if applicable).
When Does This Actually Start?
- The new levy only applies to bookings made AND completed on or after 1 January 2025.
- If a guest had booked in 2024 for a stay in 2025, no levy applies.
How’s the Levy Calculated?
- 7.5% of the total booking fee (so, if your guest pays $1,000, the levy is $75).
- Includes cleaning fees and GST, but NOT credit card fees.
- The levy doesn’t apply to refunded or cancelled bookings (phew!).
💡Final Thought:
No one loves a new tax, but at least now you know the drill! Make sure you’re across your obligations, and if you’re unsure, check the State Revenue Office Victoria website for updates or reach out to our team who will be happy to help.
More info here: https://www.sro.vic.gov.au/short-stay-levy
– The team at PAL
Disclaimer: This article is here to give you general info, not advice for your unique situation. We can’t take responsibility for decisions based on it, so be sure to chat with your accountant or advisor first!
Have a question or comment?
If you have any questions or comments relating to this article (or any other accounting matter) please get in touch with us at [email protected] and we’ll be happy to assist you.