Starting in 2025, a new 7.5% Short Stay Levy will apply to certain types of short stay bookings in Victoria. This levy will be imposed on all accommodation bookings through platforms like Airbnb, Booking.com, and others, and will affect both property owners and accommodation providers.

We would like to outline what these changes mean for you and what actions are required to ensure compliance.

What You Need to Know:

1. Levy Overview: The levy is set at 7.5% of the total booking fee for short stay accommodation. This includes the base price of the accommodation as well as any additional charges such as cleaning fees, service fees, and optional add-ons (e.g., transportation or activity fees). The levy will not apply to other charges like damage repair fees or optional services that are not included in the accommodation booking.
2. Exemptions: Not all properties are subject to the levy. Key exemptions include:
   • Properties used as principal places of residence (PPR).
   • Properties such as hotels, motels, student accommodation, and temporary crisis accommodation.
   • Short stays booked in secondary residences on the same land as a PPR are subject to the levy.
3. When Does the Levy Apply?: The levy will apply to all bookings made and completed from 1 January 2025 onward. If a booking is made before this date but completed in 2025, the levy will not apply.
4. Who Is Responsible for Payment?: The levy will typically be calculated and collected by the booking platform (e.g., Airbnb, Booking.com). If you list your property on one of these platforms, you may not need to take any direct action regarding the levy as it will be automatically included in your booking fees.
5. Declaration Requirement: If you believe your property is exempt from the levy (e.g., if it is your principal place of residence), you will need to complete a declaration form. This form should be submitted to the booking platform, which will retain it for verification purposes. If your declaration is incorrect, both you and the platform will be responsible for any shortfall in levy payments.
6. Short Stay Levy on Bundles/Packages: If your property is part of a bundled package (e.g., accommodation and flights), the levy will only apply to the accommodation portion of the booking, not the entire package price.

What You Need to Do:

1. Review Your Property’s Status: Determine whether your property is exempt from the levy. If your property is your principal place of residence, you may be exempt, but you will need to provide a declaration to confirm this.
2. Complete the Exemption Declaration (If Applicable): If your property is exempt, please fill out the declaration form and provide it to your booking platform. If you are unsure whether your property qualifies for an exemption, feel free to reach out for clarification.
3. Ensure Platform Compliance: If you are using a booking platform, please check with the platform to ensure they are correctly collecting and remitting the levy. Most platforms will automatically include the levy in your booking fees, but it’s always good to confirm.
4. Keep Accurate Records: Make sure you keep detailed records of all short stay bookings, including the booking fee, any additional charges, and any exemptions that apply to your property. This will help you ensure compliance and handle any potential issues in the future.

We understand that these changes may require some adjustments, and we are here to assist you in any way possible. If you have any questions about the new levy, how it affects your property, or need assistance with the exemption process, please don’t hesitate to reach out.

Thank you for your attention to this important matter. We look forward to continuing to support your business under the new regulations.