Understanding the Impacts of a Potential Victorian Airbnb Levy.
With the growing popularity of short-stay accommodation providers like Airbnb, the Victorian government is considering a tax that would impact the state’s rental market. The proposed statewide Airbnb levy has been a point of debate for industry players, lawmakers, and homeowners alike, with various opinions on its feasibility and impact.
As a homeowner, it’s essential to stay abreast of the changes in the law that could affect your property and income. In this blog, we’ll discuss what the statewide Airbnb levy is, how it works, and its potential impact on homeowners.
What is a Statewide Airbnb Levy?
The Airbnb levy is a proposed state tax on short-term accommodation rentals, including platforms like Airbnb, Stayz, and others. The tax aims to impose a charge on holiday rentals to stabilize the property market and provide more affordable long-term accommodation options.
The proposed levy would be calculated as a percentage of the rental costs, with a potential cap of 8%. The rate of the levy is yet to be established, but various stakeholders suggest different percentages that may impact homeowners’ income.
What would be the impact on Homeowners?
The effect of the Airbnb levy on homeowners would depend on various factors, including occupancy rates, rental income, and expenses. While some homeowners may not feel the pinch as they’ve acquired their properties as an investment, the proposed levy could hurt those who have entered the market by buying a second home.
On the other hand, the levy could incentivize homeowners to return their holiday homes to the long-term rental market, improving the supply of affordable housing. However, some homeowners may prefer to let their properties sit empty instead of paying the additional levy, exacerbating the housing crisis.
The proposed Airbnb levy has garnered mixed feedback from various stakeholders. The short-stay industry supports the levy but calls for it to be kept below 5% to avoid hurting tourism. Advocates for public and community housing welcome the levy and encourage the proceeds to be used to fund affordable homes.
However, opposition leader John Pesutto opposes any tax on tourism, regardless of the percentage. Real estate agent Michael Leaney suggests a flat rate per night as a simpler alternative to the levy.
In summary, the statewide Airbnb levy is a proposed tax on short-term accommodation rentals aimed at stabilizing the property market and providing affordable long-term rental options. The levy’s impact on homeowners would depend on various factors, including occupancy rates, rental income, and expenses.
If you have any questions around your investment property, you can contact our experienced team today for a chat.