Victoria's Airbnb Tax Is Live—But Listings Keep Rising

Victoria's 7.5% short-stay levy kicked in on 1 January 2025. It was meant to push properties back into the long-term rental market. So far? It's not working.

Author

STRA Insights
January 11, 2026

What's the levy?

The Short Stay Levy Act 2024 introduced a 7.5% tax on all short-term accommodation bookings under 28 days. It applies to platforms like Airbnb and Stayz, and covers the total booking fee—including cleaning fees and GST.

Booking platforms collect the levy and pass it on to the State Revenue Office. Revenue goes to Homes Victoria to fund social and affordable housing, with 25% earmarked for regional Victoria.

The numbers so far

Despite the levy, short-term rental listings in Victoria grew 6.6% year-on-year to April 2025—up from around 70,000 to nearly 78,000 properties. The government estimated there are around 63,000 short-stay properties statewide, with almost 50,000 being entire homes unavailable to long-term renters.

The levy is expected to raise around $70–75 million annually. Whether it actually shifts properties to long-term rental remains unclear.

What hosts need to know

  • The levy applies to all bookings under 28 consecutive days

  • Platforms like Airbnb collect it automatically—hosts don't need to do anything unless their property is exempt

  • Exempt properties include hotels, motels, hosted accommodation (where the owner lives on-site), and commercial residential premises

  • Owners corporations can now vote to ban short-term rentals in their buildings with 75% approval

  • Local councils have new powers to regulate or restrict short-stay accommodation in their areas

The political backdrop

The Victorian Liberal opposition has pledged to repeal the levy if it wins the 2026 state election, calling it unfair and a cost-of-living hit on regional tourism.

Industry groups argue the levy won't meaningfully boost long-term rental supply. A University of South Australia study found that strict short-term rental regulations—including in New York City—have failed to increase housing availability or reduce rents.

Bottom line: Victoria's Airbnb tax is now part of doing business. But early data suggests it's raising revenue, not returning homes to the rental market.