The Allan Labor Government’s controversial 7.5 per cent Holiday and Tourism Tax took a major step forward in the Legislative Assembly, pushing the tax closer to becoming a reality.
Under the Short Stay Levy Bill, short stay accommodation bookings made from 1 January 2025 will see a significant price hike, impacting vital accommodation options for regional tourists, from farmhouse stays to Airbnb rentals.
In addition, the Bill grants local councils the authority to ban short stay accommodation altogether or restrict the number of days properties can be listed on short-term rental platforms.
The Nationals’ Member for Mildura, Jade Benham, condemned the Government’s move, emphasising its detrimental impact on regional communities heavily reliant on tourism.
“This tax is an assault on regional Victoria’s tourism industry and families needing a break. It will drive up costs for holidaymakers, hurt local businesses, and further erode investor confidence at a time when we need more investment, not less,” Ms Benham said.
Ms Benham highlighted the fact that 65% of Victorian hosts are women and 76% of Victorian hosts say hosting helps them meet the rising cost-of-living.
“This tax does nothing to solve the housing crisis, especially in regions crying out for more homes. Instead, it punishes regional tourism businesses and visitors,” Ms Benham said.
“Victoria already endures the highest property taxes in Australia, driving away the very investment needed to build new homes.
“The reality is this tax is about bailing out Labor’s mismanaged Homes Victoria agency, which is $185.6 million in debt. Once again, Labor’s poor financial management is hitting Victorians hard.”
“Labor cannot manage money, and Victorian families are paying the price.”
