Open letter to our hosts in Victoria

Dear Victorian hosts,

We understand the recent news of major changes to the short-stay sector in Victoria may have left you with a number of questions.

The Victorian Government has announced a new levy of 7.5% which will ultimately be paid for by the guest at the time of booking. The Government has indicated that revenue collected will be used for new social housing projects. 

Unfortunately, the Government’s announcement deviates significantly from previous commitments outlined in the Victorian Housing Strategy, which pledged to create one simple set of rules for the short-stay sector in Victoria. Airbnb was not appropriately consulted on the changes and we share your disappointment in the Government’s backflip. 

The announcement has created confusion and we want to reassure you we are continuing to engage with the Government as the legislation moves through Parliament to advocate for sensible and evidence-based changes to the draft legislation. We will continue to closely monitor the situation and our priority is to make this as seamless and easy as possible for you, our valued hosts.

What’s happened?

• Starting from January 1, 2025, a 7.5% levy will be imposed on short stay accommodation across Victoria increasing costs for guests and impacting tourism. This levy will apply to all bookings, unless your listing is your principal place of residence. This levy will be collected by Airbnb from the guest at the time of booking, and remitted to the Government. 

• Owners corporations will have the power to prohibit listings in a strata scheme on a three-quarter majority vote, as long as it is not your principal place of residence. We understand that this may raise concerns for hosts who operate in such schemes.

• Local governments will have the authority to regulate short-stay accommodation separately, potentially introducing permits and restrictions on rental nights. This could lead to up to 79 different sets of regulations imposed by local councils, resulting in more bureaucracy and uncertainty.

At Airbnb, we have always supported sustainable and evidence-based regulation. The Government’s announcement contradicts its pledge to create a unified framework for short-stay accommodation, putting the significant economic benefits that short-term rentals bring to Victoria at risk. It also poses a long-term threat to the tourism industry.

If restrictions or caps are considered by local governments, this has the potential to reduce choice and affordability of accommodation options in the tourism sector. There is no evidence to suggest that these measures improve rental availability or affordability.

With 79 councils around Victoria, we don’t know yet how each one will regulate the short-stay sector in their local area. However, we will aim to share what further information we can on local schemes as they come to hand. 

We are here to support you and will work tirelessly to champion your needs and interests.

Thank you for being a part of the Airbnb community.

Warm regards,

The Airbnb Team