Calculate the short stay levy
Details on what the levy applies to and how it is calculated.
Key information
The short stay levy is 7.5% of the total booking fee (the total amount paid for the stay).
The total booking fee:
- includes charges such as cleaning fees and GST payable for any part of the booking
- does not include charges for using a particular payment method, such as credit card surcharge fees.
Where one all-inclusive fee is charged to a guest, the short stay levy is calculated on that fee.
Where the fee charged to the guest is itemised (such as a separate cleaning fee, booking fee, GST for any part of the booking, and the short stay levy), the short stay levy is calculated on the sum of the itemised amounts.
Importantly, this includes any amount attributed to the levy. This ensures the levy amount that must be lodged and paid to us is the same for an itemised invoice and a non-itemised invoice.
The levy amount must be rounded down to the nearest multiple of 5 cents. For example, if the levy amount is $220.39, it must be rounded down to $220.35.
Examples
What the levy does and doesn’t apply to
GST
The short stay levy applies to any GST amounts included in the total booking fee.
GST on the levy
GST is collected by the ATO according to Commonwealth law, so we cannot advise whether GST applies to the levy in your particular circumstances.
Broadly, GST does not apply to state taxes. You can find more information on the GST treatment of taxes, fees and charges on the ATO website.
Late checkout fees
The short stay levy applies to any fees charged for a late checkout included in the total booking fee.
No fee paid for the booking
The short stay levy applies to the total booking fee payable for a short stay. If nothing is paid for the stay (e.g. the owner of a holiday home allows a friend to stay for free), then the stay is not subject to the levy.
However, if the guest has to pay anything for the stay, it is considered a booking fee and the levy applies. This includes the owner of a holiday home asking their friend to reimburse them for costs such as cleaning or utilities.
Example
David lets his cousin stay at his beachfront holiday home for 2 weeks over the summer. David does not charge his cousin to use the accommodation.
However, David regularly uses a cleaner to clean the home after people stay there. The cleaner charges $200 per clean.
If David asks his cousin to reimburse him for the cleaning fee, this is considered a booking fee and a levy of $15 is payable for the stay ($200 × 7.5%).
Promotions and gifts
The short stay levy applies to the total booking fee payable for a short stay. If there is no fee payable because the stay is part of a promotion or a voucher gifted by the controller of the accommodation, then the stay is not subject to the levy.
However, if a voucher is purchased and then gifted to another person who uses the voucher to pay for a short stay, the amount paid through the voucher is part of the booking fee and the levy applies.
Example
Bill’s Bed and Breakfast in Red Hill gifts 3 midweek stays to a charitable organisation. Bill receives no fee for the vouchers.
One of these vouchers is donated to Dana, who uses it to book a stay at Bill’s Bed and Breakfast.
Bill does not charge any extra fees for the stay. The levy does not apply to the stay.
Vouchers
The liability for the levy arises when a guest completes their short stay. That means the purchase of a voucher is not subject to the levy.
However, when a voucher is used to pay a booking fee for a short stay, this forms part of the total booking fee and the levy applies.
Damage by guests
The levy applies to the total booking fee for a short stay. If a guest is charged a fee for damage caused to the property, this is not a fee charged for the stay, but a fee charged to repair/restore the property to its original condition.
Such amounts are not considered part of the total booking fee and therefore are not subject to the levy.
Add-ons
The levy does not apply to extra services if guests can choose not to pay for them. If a service does not relate to the use of the property – and the guest can choose to add it to their bill or not – then the levy does not apply.
If an extra service is optional, you can exclude it from the total booking fee and the levy does not apply. For example, transport from the airport.
If an extra service is part of the stay and guests cannot remove it for a cheaper rate, you must include it in the total booking fee and the levy applies. For example, a boat or bike that comes with the property.
Package/bundle deals
Sometimes, guests book short stay accommodation as part of a bundle or package with other items that are not connected to the accommodation, such as flights, a spa treatment or restaurant experience.
In this case, the levy only applies to the cost of the accommodation part of the booking.
This is the total amount paid for the accommodation by the bundle provider, or if this is not possible, a calculation of what the accommodation would have cost without the other items.