Short stay levy

What is the short stay levy?

From 1 January 2025, the short stay levy will apply to short stays in Victorian property.

You may have to pay the short stay levy if you accept bookings for a stay in Victorian accommodation that is less than 28 consecutive days, and charge a fee for the stay.

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 home 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 PPR), a granny flat or other separate residence (even if located on the same land as a person’s PPR) 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 by 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.

Frequently asked questions

What is a short stay?

A short stay is any stay less than 28 consecutive days.

If you accept a booking for 28 consecutive days or more, this is not considered a short stay and you don’t have to pay the levy.

What do I need to do?

Booking platforms or owners and tenants that accept short stay bookings without a booking platform need to register with us.

Booking platforms, owners and tenants that collect booking fees greater than $75,000 per year must lodge and pay the levy quarterly.

Booking platforms, owners and tenants that collect booking fees of $75,000 or less per year must lodge and pay annually (period ending 31 December).

Where owners and tenants only accept bookings through a booking platform, the booking platform will be responsible for registering, lodging and paying the levy.

If you have a levy liability, you must register for the short stay levy by the due date for your first return.

You will be able to register, lodge returns and pay the levy via our website. More information about this process, including educational materials, will be available on this page soon.

What properties are not included in the levy?

The levy will not apply to a property that is someone’s PPR, whether they own or rent the property. However, it does apply to short stays in secondary residences and dwellings located on the same property as someone’s PPR, such as granny flats, caravans and tiny homes.

The levy will also not apply to a hotel, motel, hostel or similar accommodation.

Other properties not included are:

• accommodation within a broader facility provided for the use of employees, contractors or other occupants of the facility, such as employee accommodation offered by schools and healthcare facilities or farm worker accommodation
• rooming houses, retirement villages, residential care facilities and supported residential services
• student accommodation provided in connection with an educational institution, such as university colleges
• temporary crisis accommodation provided on a non-profit basis by an agency that receives homelessness support funding from the Victorian Government as defined in the Public Health and Wellbeing Act 2008.

Transitional arrangements

The short stay levy will only apply to bookings made and completed on or after 1 January 2025.

The levy will not apply to bookings made before this date, even if the stay is completed on or after 1 January 2025.