VICTORIA is proposing a country-first levy as high as 7.5% on short-term accommodation, which is due to come before state cabinet in the coming week.
The levy on short-stay accommodation, such as Airbnb, is set to de discussed by state cabinet today and would reportedly present new costs fronted by consumers.
According Inside Airbnb, based on average rate this could add around $17 per night to the average price of stays in metropolitan Melbourne, $29 a night extra on the Surf Coast and $42 for stays on the Mornington Peninsula.
“Airbnb supports policies that would help boost housing construction across the country, however, a 7.5 per cent levy that applies only to short term rental accommodation is too high, and would give hotels a free kick and create an uneven playing field,” said Michael Crosby, head of public policy for Airbnb Australia and New Zealand.
“A rate that high could have a negative impact on the appeal of the state as a tourism destination, also penalising everyday Victorians at the wrong time.
“We believe a levy somewhere between 3-5 per cent which is in line with international policies, would be appropriate.”
Back in June 2022, the Australian Competition and Consumer Commission filed proceedings against Airbnb for allegedly misleading its Australian consumers.
“We allege that Airbnb’s misleading conduct meant that consumers were deprived of the opportunity to make an informed choice about whether, and at what price, to book their holiday accommodation on the Airbnb platform,” said Gina Cass-Gottlieb, chair of the ACCC.
The Council to Homeless Persons (CHP) welcomed the levy and has called for the proceeds derived from it to be used to fund public and community housing.
“A levy like this would be an important step in injecting more fairness into Victoria’s housing system which is in dire need of major reform. That money should provide desperately needed accommodation for our most vulnerable people,” said Deborah Di Natale, CEO at CHP.
“A levy on bookings through platforms like Airbnb has the potential to raise more than $30 million a year to house people without homes, but ending the housing crisis will require billions, not millions, in new investment.”
Di Natale added that the levy needs to be rolled out in addition to a commitment to build at lease 60,000 public and community homes over the next decade.
The latest data from Council to Homeless Persons recently revealed Victoria has the lowest social housing stock in Australia.
“The Housing Statement gives Victoria a once-in-a-generation chance to end homelessness, if done right. The State Government must not let this chance slip through its fingers,” said Di Natale.
“We know the Government is aware of how serious the situation is. Now we urge them to take decisive action to fix the housing crisis.”
