A new tax coming into effect in 2025 will impose a series of additional charges on Australians who own and stay on Airbnb.
The state government’s controversial 7.5 per cent tax on short-stay bookings, which was passed by parliament in November, will come into force on Wednesday.
Around 50,000 properties providing short-term accommodation services will be hit by additional cleaning and GST charges.
Some short-term accommodation providers will be charged $26 or $182 per week for a property that charges renters $350 per night.
Properties located in areas frequented by tourists such as the Mornington Peninsula in southern Victoria will be most affected by the new tax.
Rentals that charge visitors up to $500 per night will be charged $37 or $262 per week.
The tax will be implemented on New Year’s Day because the tax also includes the cost of cleaning, GST, service and administration fees.
The new law will only apply to short-term rentals where guests reside in the properties for less than 28 days.
Airbnb owners in Victoria will be hit by a new tax in the New Year that will make the cost of holidays more expensive for Australians (file image)
Victorian councils will now be able to limit the number of days short-term accommodation can be available to tenants.
Homeowners who rent out their primary residence for a short-term stay will not be affected by the tax.
The tax will not include amounts charged for the use of a particular payment method, such as credit card surcharges.
The tax has been criticized by tourism officials, who argue the measure will deter visitors from coming to Victoria during the Christmas season.
Tourism Industry Council of Victoria chief executive Felicia Mariani said the new law is confusing and will make short-term accommodation bookings unaffordable.
“With only six weeks from the time the legislation was passed in mid-November to the tax coming into force, the industry has really struggled to understand the complexities of the guidelines for collecting the tax,” Ms Mariani told the Herald of the sun.
“Through these guidelines it is also clear that this is not simply a 7.5 per cent tax on the cost of accommodation.”
Liberal deputy chairman and former tennis star Sam Groth said taxpayers will be hardest hit by the new tax during a cost of living crisis.
“Every dollar spent on Labor’s Airbnb tax is one less dollar spent on Victoria’s tourism sector, which supports local jobs and communities across the state,” Mr Groth said.
Around 50,000 properties offering short-term accommodation services in Victoria will be affected by the tax from New Year’s Day (pictured, Mornington Peninsula)
State Government figures revealed the tax will help generate $60 million in revenue each year.
The funds will be given to Homes Victoria, which is the Victorian Government’s social housing and homelessness agency.
A Victorian government spokesperson told Daily Mail Australia the tax would help increase housing supply by encouraging investors to list properties on the long-term rental market.
“This is an important step towards making more properties available for long-term rental and giving Victorian families more opportunities to find a home,” the spokesperson said.
“Brad Battin and the Liberals don’t care about helping Victorian families find a home, and they don’t care about providing more funding for social housing.”