Opinion piece featured in the Herald Sun: Taxing times for those in short-stay rental sector
The Victorian Government recently passed the Short Stay Levy Bill 2024, introducing a 7.5% tax on short-term rental revenue. While intended to address the housing crisis, this new tax has sparked concern among small business owners who rely on short-term rentals for income. Many of these operators are not large property investors but regular Australians supporting local economies through affordable lodging. The legislation also grants local councils authority to impose additional regulations and fees, creating further uncertainty for the sector.
ASTRA warns that the levy could harm the tourism industry, particularly in regions like the Mornington Peninsula, already struggling due to economic challenges. Short-term rentals play a crucial role beyond tourism, offering essential housing for workers and patients. ASTRA has advocated for reasonable amendments, such as excluding essential workers and disabled travelers from the tax, but the Bill passed without changes. With the levy set to take effect on January 1, operators fear the rushed timeline will disrupt peak tourism operations, and ASTRA is calling for a six-month delay to ensure proper implementation.
