SHORT STAY LEVY
What is the short stay levy?
From 1 January 2025, the short stay levy applies to short stays in Victorian property. This means that if you accept bookings for a stay in Victorian accommodation that is less than 28 consecutive days and charge a fee for the stay you may be liable to pay the short stay levy.
The short stay levy applies to bookings made and completed on or after 1 January 2025.
The levy is 7.5% of the total booking fees paid including:
1. Cleaning fees;
2. GST;
3. Late checkout fees (if applicable);
4. Guest service fees; and
5. Accommodation (including room and upgrades).
The total booking fee does not include credit card fees.
What property is excluded?
The levy does not apply to property that is:
6. Principal place of residence (PPR) owned or rented;
7. Any property defined as commercial residential property within section 195-1 of the GST Act;
8. Accommodation within a broader facility provided for the use of employees accommodation;
9. Rooming houses, retirement villages, residential care facilities and supported residential services;
10. Student accommodation; or
11. Temporary crisis accommodation.
How to pay the levy?
Booking platforms, owners and tenants that collect booking fees of $75,000 or more per year must lodge and pay the levy quarterly.
Booking platforms, owners and tenants that collect booking fees less than $75,000 per year must lodge and pay annually (period ending 31 December).
If a booking platform is used, the booking platform is responsible for registering, lodging and paying the levy.
If a property owner or tenant takes bookings directly and does not use a booking platform, the property owner or tenant is responsible for registering, lodging and paying the levy.
If you have a levy liability, you must register for the levy by the due date for your first return.
You will be able to register, lodge returns and pay the levy via the SRO website.