Understanding the short stay levy

Key information

The short stay levy applies to short stay accommodation in Victoria from 1 January 2025. A short stay is a stay of less than 28 consecutive days in the same property, not counting the checkout day.

The levy is paid by:

• the booking platform, if the booking is made through a platform
• the property owner or tenant, if the booking is accepted directly without using a platform.

Revenue raised funds social and affordable housing, with 25% invested in regional Victoria.

Properties included

The levy applies to stays in accommodation such as:

• an entire house or apartment
• a private room in a house (where the house is not the principal place of residence of the owner or renter)
• a granny flat or other separate residence (such as a tiny home or caravan), even if on the same land as the main residence, if it can be occupied separately.

Unless excluded, the levy applies to any premises that can accommodate a person, even if used for another purpose or if permanent, temporary, fixed or mobile.

For mobile premises such as caravans, the levy only applies if the stay is at one site for the entire booking. Hiring a caravan to travel from site to site is not subject to the levy.

Exclusions and exemptions

Exclusions

These properties are not considered short stay accommodation. Common exclusions include:

• a short stay in a property that is the principal place of residence of the owner or renter
• properties that cannot be occupied separately from the main residence (such as sharing an entrance, kitchen or bathroom)
• commercial residential accommodation such as hotels, motels and hostels.

See the ATO GST ruling for examples and characteristics of commercial residential premises. If you are still unsure, you can request a private ruling.

For owners or renters who arrange short stays without a booking platform, you do not need to lodge a return for short stays at a property that is excluded.

If your property is excluded, tell the booking platforms that accept bookings on your behalf, so they do not apply the levy. Some booking platforms have the declaration form on their website. If not, download and submit this declaration form.

Exemptions

The following types of accommodation are exempt and do not require an application or declaration:

• accommodation within a broader facility provided for employees, contractors or other occupants, such as staff housing at schools, healthcare facilities or farms
• rooming houses, retirement villages, residential care facilities and supported residential services
• student accommodation provided in connection with an educational institution, such as university colleges
• temporary crisis accommodation provided on a non-profit basis by an agency that receives homelessness support funding from the Victorian Government, as defined in the Residential Tenancies Act 1997.

Rates and calculations

The short stay levy is 7.5% of the total booking fee for each short stay.

The booking fee includes:

• nightly rate
• cleaning fees
• Goods and Services Tax (GST)
• late checkout fee (if applicable).

The booking fee does not include:

• credit card fees
• other payment processing charges
• charges for damage caused to the property.

If one all-inclusive fee is charged, calculate the levy on that fee. Round down to the nearest 5 cents if the levy is not a multiple of 5 cents.

Registering

If you have a levy liability, you must register before lodging your first return.

You can register as:

• an owner (the owner of the property)
• a booking platform (a platform accepting bookings on behalf of others)
• a tenant (the person to whom property is let under a residential rental agreement).

Property owners or tenants

Owners or tenants who accept bookings without using a platform must register for the short stay levy. Registration is not required if all bookings are made through a platform.

Accommodation platforms

Platforms that accept short stay bookings, such as Airbnb, Stayz and Booking.com, must register for the short stay levy. They are responsible for:

• collecting the levy on all bookings made through their platform
• lodging and paying the levy
• reporting booking details as required.

Platforms do not need to register individual properties.

Register for the short stay levy

Lodging returns

For both property owners and platforms, lodgement and payment frequency depends on the total booking fees for the property:

If you start lodging annually and later exceed $75,000 in total booking fees, you must switch to quarterly lodgement for the remainder of the year.

Follow the steps to lodge your short stay levy return.

Payment options

When you lodge a short stay levy return via the online portal, you can pay by:

• credit card
• one-off direct debit.

If you have received a short stay levy assessment, you can pay by BPAY or credit card.

Learn more about payment options.

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