JANE AGIRTAN INDEPENDENT

Victoria’s new “Airbnb tax” only benefits Airbnb, and once again unit owners lose out. Let’s not mince words here – the new tax does nothing to curb the popularity of Airbnb, nor does it do anything to improve the liveability of neighbours and owners’ corporations (OCs) that have a desperate problem with the noise and disruption of amenity that short-term stays bring with them.

The new 7.5 per cent tax will be passed on to guests staying in the accommodation. The tax is modest enough to not be too expensive to dissuade customers. Airbnb know this, as do the hosts. As does the Labor government. It will simply be business as usual.

Labor’s Short Stay Levy Bill will apply to all bookings made from 1 January 2025, increasing the cost of every short stay accommodation booking.

The Bill is also set to allow local councils to ban short stay accommodation completely and set the number of days a property can be listed on short-term accommodation sites.

Just five months out from the start of the tax, the Allan Labor Government is yet to confirm how it will operate, causing massive uncertainty for the tourism sector.

Fresh off approaching a $188 billion debt ($26 million in taxpayer-funded interest payments per day) – and having already slogged rental providers and renters, as well as small business owners and employees – the Allan Labor Government is pressing ahead to slug short-stay accommodation providers and people booking, such as via AirBnb or Stayz, with a 7.5 per cent tax on bookings.

This tax will do nothing to address Victoria’s housing affordability crisis and won’t result in more homes getting built.

Under Labor, Victoria has the highest property taxes in Australia, which is driving away the investment needed to get more homes, more rentals and more accommodation options.

This tax will particularly impact the tourism economy, particularly in in South East, Bayside, Mornington Peninsula and Philip Island. This in turn will impact local businesses and jobs.

The Allan Labor Government also hasn’t communicated properly with the tourism sector, people booking accommodation and providers about this new tax.

Again, Labor cannot manage money and Victorians are paying the price.