Victorian Tourism Industry Council boss slams Government’s proposed 7.5% ‘Short-Stay Levy’

Victorian Tourism Industry Council boss slams Government’s proposed 7.5% ‘Short-Stay Levy’
By Zach Havard


New research from the forthcoming ‘Short-Term Rental Perceptions’ report has raised concerns about the Victorian Government’s proposed 7.5 per cent Short-Stay Levy.

The levy, introduced as a measure to ease the state’s housing crisis, is predicted to have little effect on shifting properties from short-term to long-term rentals, according to the findings.

The survey which studied both property owners and consumers, found that only 1 to 6 per cent of short-stay property owners would likely switch their rentals to the long-term market once the levy is implemented.

Consumer behaviour is also expected to change significantly, with 51 per cent of respondents indicating they would reduce travel and spending, and 55 per cent planning to shorten their stays.

Coastal and regional areas are likely to be hit the hardest by this shift in tourism behaviour.

Felicia Mariani, CEO of the Victoria Tourism Industry Council (VTIC), believes the research confirms the tourism industry’s warnings about the unintended consequences of the proposed levy.

“Short-stay accommodation is critical to Victoria’s accommodation supply, especially in regional areas where traditional options are scarce,” Mariani said.

“While VTIC supports regulating short-stay accommodation to address the housing crisis, she insists that the levy will fail to meet its intended goal of increasing long-term rental availability.”

The research highlights the diverse use of short-stay accommodation, noting that 20 per cent of users rely on these rentals during challenging life events such as relocation, medical treatments, domestic violence, and natural disasters.

“This proposed levy may deliver unintended consequences to those who rely on short-stay accommodation in times of crisis,” Mariani continued.

The Government’s objective will not be achieved by this levy. Instead, we risk stifling an industry that plays a vital role in regional Victoria’s economy.”

The report also indicates that the levy could threaten a $39 billion industry that employs over 257,500 people across Victoria, with 118,700 of those jobs based in regional areas.

VTIC is urging the government to work closely with industry sectors to develop more comprehensive solutions to the housing crisis without harming the state’s tourism and short-stay accommodation sectors.

The ‘Short-Term Rental Perceptions’ report by New Focus Research was commissioned by the Australian and NZ Short Term Rentals Accommodation Association (ASTRA) and the Victoria Tourism Industry Council (VTIC).

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