Tasmania's 5% Airbnb Levy Coming July 2026—Have Your Say

What's being proposed?

The Draft Short Stay Levy Bill 2025 introduces a 5% levy on short-term accommodation bookings under 28 consecutive days. It applies to platforms like Airbnb and Stayz.

The levy is calculated on the total booking fee—including accommodation, cleaning fees, and GST.

Hotels, motels, pubs, bed and breakfasts, and caravan parks are excluded. Only short-stay rentals typically listed on booking platforms are captured.

Who pays?

The government says guests will pay the levy, not property owners. Treasurer Eric Abetz pointed out that an estimated 83% of Tasmanian short-stays are used by interstate or overseas travellers—meaning most of the cost falls on visitors, not locals.

Booking platforms will collect the levy and remit it to the State Revenue Office. For direct bookings, the property owner is responsible for collecting and paying.

Where does the money go?

This is where Tasmania differs from other states. The government has committed that 100% of levy revenue will go directly to first home buyer assistance programs.

The levy is expected to raise approximately $11 million annually. This will fund initiatives like stamp duty relief on homes up to $750,000 and the tripled $30,000 First Home Owner Grant.

The timeline

• Now: Draft legislation released for public consultation

• 25 February 2026: Consultation closes

• Autumn 2026: Final Bill expected to be introduced to Parliament

• 1 July 2026: Levy commences

• 30 June 2027: Deadline for platforms and hosts to register with State Revenue Office

• 30 July 2027: First annual lodgement and payment due for 2025-26 levy

Bookings made before 1 July 2026 won't attract the levy, even if the stay occurs after that date.

Industry pushback

The Short Term Accommodation Association Australia has slammed the proposal, warning the real cost to travellers will be closer to 10% once platform commissions, service fees, and tax compounding are factored in.

The industry group also criticised Tasmania for being the only state not signed up to the federal Help to Buy scheme, questioning the government's commitment to housing affordability.

Tourism bodies have raised concerns about the levy's impact on visitor numbers, particularly in regional areas heavily dependent on tourism. With record occupancy rates and over 1.35 million visitors in the year to June 2025, they argue now isn't the time for new costs.

What you can do

Public consultation is open until 5pm on Wednesday 25 February 2026. The draft Bill and Discussion Paper are available on the Treasury Tasmania website.

If you're a short-stay operator, tourism business, or concerned resident, now is the time to have your say before the legislation is finalised.

Bottom line: Tasmania's levy is smaller than Victoria's 7.5%, but it's coming. The silver lining—if you support first home buyers—is that every cent goes to getting Tasmanians into homes, not general revenue.