Short stay levy applies from 1 January 2025

Published on 29 October 2024

From 1 January 2025, the short stay levy will apply to short stays in Victorian properties where a fee is charged, after the Short Stay Levy Act 2024 received Royal Assent on 29 October 2024.

A short stay means a stay in property for a continuous period of less than 28 days.

The levy is a flat 7.5% of the total booking fees paid, including fees and charges such as cleaning fees and GST where applicable. The total booking fee does not include credit card fees.

The levy will not apply to a short stay in a property that is someone’s principal place of residence (PPR), whether they own or rent the property. For example, if you list your property for short stay bookings while you’re away on holidays, any short stays that guests book and complete in your home are not liable for the levy.

The levy will apply to a short stay in accommodation such as an entire house and apartment, a private room in a house (where the house is not a person’s principal place of residence), a granny flat or other separate residence (even if located on the same land as a person’s principal place of residence) and a tiny home parked on land. It will not apply to a stay in a hotel, motel or similar.

The levy must be paid by:

• the booking platform where the booking is made via the platform, or
• the property owner or tenant, where the booking is accepted without a platform.

Revenue raised by the short stay levy will fund Homes Victoria, with 25% of funds to be invested in regional Victoria.

For more information, including upcoming webinars about the levy and the obligations of those who take bookings, visit our website.