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Tourism industry slams short-stay tax

September 21, 2023 8:23 am in by
Daniel Andrews has announced a 7.5% levy on short-term rental providers. (File image).

The local tourism industry has slammed the state government’s decision to tax short-term accommodation services such as Airbnb.

Victorian Premier Daniel Andrews announced a 7.5% levy on short-term rentals as part of raft of measures in a bid to help unlock housing supply.

Great Ocean Road Regional Tourism Industry Development Manager Jo Birley, said the tax could negatively impact visitor numbers across the Surf Coast.

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“An increase in accommodation prices will negatively impact our industry,” she said.

“We’re already experiencing a slump in spend with less people at the moment in a position to spend money on attractions and dining experiences around the region.”

The Premier said the new levy will be paid for by booking booking platforms diverted to a dedicated social housing fund, but Ms. Birley is concerned that cost will be passed down to holiday-makers

“We’d like to see the government explore alternative policies that mitigate the impact of the short-term accommodation market on long-term accommodation,” she said.

“And we don’t feel a tax on consumers will necessarily impact owners listing their homes on the short-term market.”

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The housing reform comes as data released by the state government suggests the Victorian population will hit 10.3 million by 2051 – and regional Victoria will be home to more than 2.3 million.

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