Understanding the short stay levy

Description

If you accept a booking on or after 1 January 2025 for a short stay in Victoria, you may need to pay the short stay levy.

Transcript

If you accept a booking for a short stay in Victoria, you may need to pay the short stay levy. 

A short stay is any stay lasting less than 28 consecutive days. If a stay lasts 28 days or longer, you do not have to pay the levy. 

The levy is a flat 7.5% of total booking fees paid for the short stay, including fees and charges such as cleaning fees and GST where applicable. 

If a booking is made through a booking platform, the booking platform pays the levy. 

If a booking is made directly with you – without a booking platform – you pay the levy. 

The levy doesn’t apply if the property is your principal place of residence, whether you own or rent the property. 

However, it does apply to short stays in secondary residences and dwellings located on the same property as your principal place of residence, such as granny flats.

The levy does not apply to accommodation like hotels, motels or hostels, and certain specialist accommodation, such as rooming houses, retirement villages and certain student accommodation. 

If your total annual booking fees are $75,000 or less, you need to complete an annual return. 

If your total annual booking fees are more than $75,000, you need to lodge quarterly returns. The quarterly periods begin on the first of January, April, July and October each year. You must lodge and pay within 30 days of the end of each period. 

You can register for the levy – and lodge and pay returns – through a portal on the SRO website. 

For more information about the short stay levy, including how to pay, visit our website: sro.vic.gov.au/shortstay