Starting January 1, 2025, Victoria has introduced a new rule called the "short stay levy”. This means if you rent out a property in Victoria for less than 28 days and charge a fee, you might need to pay this levy. The levy is a flat 7.5% of the total booking fees paid, including fees and charges such as cleaning fees and GST, where applicable but excluding credit card fees.
The levy does not apply to a short stay in someone’s principal place of residence (PPR), whether they own or rent the property. It also doesn't apply to stays in hotels, motels, or similar accommodations.
The levy does apply to short stays in places like entire homes or apartments, private rooms (if the house isn’t your primary residence), granny flats, separate residences on the same property, and even tiny homes parked on land.
What do I need to do?
If you use a booking platform, they’ll likely handle the levy for you. If you manage bookings yourself, you must register with the State Revenue Office (SRO) and pay the levy either quarterly or annually.
The money collected from this levy will go towards funding Homes Victoria, with 25% specifically allocated to regional areas.
For more detailed information, including how to register and pay the levy, visit the State Revenue Office's website, SRO Victoria.
