New powers for councils to cap short-term accommodation as Victoria moves to 7.5% ‘Airbnb tax’

State treasurer says levy will help in getting the balance right' for mix of housing and prioritising long-term rentals

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The Victorian government will grant local councils new powers to limit short-stay accommodation as it moves to introduce a 7.5% levy on properties listed on platforms like Airbnb and Stayz.

The Allan government will on Tuesday introduce legislation for its nation-first levy - which some have dubbed the Airbnb tax" - that will begin on 1 January 2025. Properties that are the owner's primary residence will be exempt from the short-stay levy, as well as hotels, motels and caravan parks.

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