Property experts have welcomed the new taxes imposed on Airbnb and Stayz homeowners in Victoria, likening the short-stay accommodation industry to the “Wild West”.

Investors who put their properties onto short-stay accommodation platforms will have to cough up an extra 7.5 per cent tax as of January 1, 2025, known as the Allan government’s Short Stay Levy Bill.

Body corporations will also have the power to ban short stays in their developments, providing 75 per cent of owners are in favour.

The bill will allow councils to apply to government to ban short-stay accommodation in their jurisdictions as well.

Tenants Victoria director of community engagement Farah Farouque said short-stay rental platforms had been acting like the “wild west” for years in Victoria.

“It’s good to see these reforms go beyond the financial levy proposed in last year’s Housing Statement,” Ms Farouque said.

“Airbnb has been a factor in reducing much needed supply of long-term rentals in inner-city areas and some holiday locations.

“These new measures won’t solve the ongoing rental crisis, but it represents welcome change to alleviate some of the stressors in the system.”

Revenue raised through the levy could be as large as $60m a year, which will go to Homes Victoria to support creating and maintaining social and affordable housing, with 25 per cent of funding to be invested in regional Victoria.

Real Estate Institute of Victoria president Jacob Caine said in the midst of a rental crisis, any policy designed to and could deliver more rental homes back into the market was welcomed.

“Over the course of the past decade, thousands and thousands of long-term rental homes have been lost to Airbnb,” Mr Caine said.

“While we understand that it’s critical for the mix when it comes to tourism in Victoria and across the country, recapturing some of those properties for renters amid a housing crisis will ease some of the pressure … our growing rental population is experiencing.”

However, he added that he was “wary” of the state government investing too much power in councils, particularly given recent debates around “Nimbys” and “Yimbys”.

“This is a nuanced debate that needs to balance between the housing needs of the Victorian community and the important tourism sector, which contributes significantly to our local economy,” he said.

But Property Investment Professionals of Australia chair Nicola McDougall said anything investors saw as a financial impost when they’re already struggling with higher mortgage repayments wasn’t good.

“It’s another attack on investors, but this time, it is a very small pool of investors that it will impact,” Ms McDougall said.

“It is the minority of investors who actually opt to put their properties in short-term rental situations, because most investors recognise the stability of having a long-term tenant in their property over a long time.

“They like to have that regular income coming in from weekly rent.”

Originally Published: Sarah Petty | News.com.au | 28 August 2024

https://www.news.com.au/national/victoria/short-stay-levy-bill-new-tax-on-airbnb-stayz-homeowners-welcomed-by-victorias-property-industry-leaders/news-story/ae637860ccddfd68446d1ee2467051c5?btr=70138786dfcb5a45f027881ca75f3323

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