State Member for Euroa Annabelle Cleeland has criticised the tax as “unfair”, claiming it will impact regional businesses and burden families looking for affordable holiday options.
“Tourism is particularly important across the region, with people coming from all over the world to visit the best of what our towns have to offer,” she said.
“Short-stay rentals enable families to find suitable places to stay while in our towns, whether it be farm stays, small homes, or shared spaces.
“Our smaller towns are not set up with commercial tourism infrastructure and instead rely on these short-term stay options.”
The Nationals announced their position following the recent passage of the Victorian Government’s Short Stay Levy Bill 2024.
This bill introduces a 7.5 per cent levy on short-stay accommodation bookings, including those made through platforms such as Airbnb and Stayz.
It will take effect on January 1, 2025.
Currently, Victoria has about 63,000 short-stay accommodation places, with nearly half of these in regional Victoria.
Almost 50,000 of those properties are entire homes that are not available for long-term rental.
During the bill’s second reading, Treasurer Tim Pallas stated that revenue from the levy would support Homes Victoria in building social and affordable housing, with 25 per cent of funds allocated to regional Victoria.
Yet Ms Cleeland claims that the new tax does little to foster new housing developments.
“This tax is doing nothing to ensure more homes are being built in areas that need it most and instead punishes regional communities reliant on tourism,” she said.
Ms Cleeland said the tax was a “blatant attack” on small business operators and renters relying on short-stay accommodations for medical needs, short-term work, or women fleeing domestic violence.
“Many of our region’s most vulnerable people rely on short-stay accommodation to best service their needs, whether for work, finding a safe space, or being closer to crucial medical services,” she said.
“On top of this, more visitors will result in more support for our local hospitality businesses and our retail sector, many of which are struggling to keep their doors open due to Labor’s increasing taxes and the growing costs of doing business in Victoria.”
Anticipating the state election in November 2026, Ms Cleeland promised that a Victorian Liberal and Nationals government would abolish this tax in the first parliamentary sitting week after the election.
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