TRANSCRIPT
If you're thinking of holidaying in Victoria, you may see an unexpected cost added onto your Airbnb booking in just a couple of years.
The state has become the first in the country to introduce a levy on short-term rental accommodation in an effort to counterbalance impacts the sector has had on the housing crisis.
From the beginning of January 2025, users will be forced to pay a 7.5 per cent short-stay levy on top of their bookings as part of broader reforms by the Victorian government to address a lack of housing supply.
Premier Daniel Andrews says funds generated from this levy will help fund social and affordable housing.
"We think it's only fair that a modest charge on that that type of housing contributes to properties that are available for the long-term rental market. That's $7.50 per $100 you pay every single cent will go to Homes Victoria to build more houses and maintain houses."
The levy is expected to raise $70 million a year from 2025 onwards.
The initiative is intended as a financial disincentive for landlords and investors from keeping their properties off the long-term rental market.
It’s also seen as a way to use the success of these platforms to fund social and affordable housing.
Mr Andrews says there are more than 36,000 short-stay accommodation places in Victoria with almost half of these in regional Victoria.
He says platforms like Airbnb and Stayz have had a positive impact on the tourism industry and it's important to strike the right balance when regulating the platforms.
"Now, I don't expect this to be universally popular. Some people will say it's too high. Some people will say it's not high enough. Some people want Airbnb and these sorts of platforms banned or some limit of 90 nights a year and stuff like that. Ultimately, there's a place for short-stay. It's very important. A lot of people use it and like it."
Eacham Curry is the director of government and corporate affairs for Stayz.
He claims by targeting platforms like Stayz directly, the reform opens a loophole for property owners to avoid the levy by renting privately instead.
"To sum it up, it's ill-conceived. It's not going to achieve what the government hopes it will, because it's targeting only the short-term sector and only the platforms on that sector. All that it's going to take for people to avoid having to collect and pay this will be to take themselves off platforms. That means that it won't collect any money and the government will have missed an opportunity"
But the C-E-O of Victoria's Council to Homeless Persons Deborah Di Natale says the levy could be instrumental for increasing social housing stocks and believes other states and territories should adopt the initiative.
"We absolutely welcome the levy which is a very modest levy for people who are staying in short-term stays. And we would congratulate the government for taking the lead and encourage every other jurisdiction to follow this particular policy position, which means there is more money for social housing to come to every state."
Whilst this 7.5 per cent levy is the first of its kind in Australia, it's not the first jurisdiction to challenge the effect short-term rental platforms are having on local communities.
The Byron Shire local government area in the New South Wales' Northern Rivers region has been battling to reduce the number of days short-term accommodation can be made available for rent from 180 days a year down to 60.
Mayor of the Byron Shire, Michael Lyon, says his community is in crisis due to short-term rental providers like Airbnb giving landlords a financial incentive to reserve their properties for the short-term holiday rental market.
"We've been in crisis for over two-and-a-half years now. And we declared a housing emergency back in March, 2021. And conditions haven't really eased since in fact, for a lot of people, it's gotten worse. We have the highest rough sleeping count in the state in raw numbers, higher than the City of Sydney at the last count, so that's why we need a solution that has those day caps as well."
The Byron Shire is awaiting approval for their proposed reform from the New South Wales planning minister, Paul Scully, who is expected to hand down a final ruling in coming months.
Mr Lyon says he's encouraged by the Victorian government's levy reform but believes it doesn't address one of the core problems with these platforms.
"It doesn't do anything to stop investors buying up properties that are long term and then putting them into short-term letting. So look, I think as part of a broader solution I think it's a good move. I like the way that they are ring-fencing all the funding and putting it into social and affordable housing. But for areas certainly like Byron Shire, it's not going to be enough. It's not going to do anything to create a disincentive for investors to buy up properties and put them in into short-term."
Premier Andrews also announced that the Victorian government will build 800,000 new homes in the next decade with an ultimate goal to have 2.2 million homes built by 2051.
New analysis forecasts Victoria's population to hit 10.3 million by 2051, an increase of 3.5 million.
Ms Di Natale from the Council to Homeless Persons says the efforts to increase the number of homes is an important one, but she says there needs to be more investment in surrounding support systems to ensure people stay housed and break the cycle of disadvantage.
"Housing is one part of the picture. And the other part is we need people who are experiencing vulnerability to be supported in those homes. And that can be a range of supports, whether it's parenting support, whether it's support to keep children in education or whether it's support to get people back in employment and being really great included members in their community."
