Aussies in one state to be slugged with a new tax from New Year’s Day – what you need to know

A new tax coming into effect in 2025 will see Australians who own and stay in Airbnb hit a range of additional costs.

The controversial 7.5 percent tax on short-stay bookings, which the state government passed through Parliament in November, will come into effect on Wednesday.

About 50,000 properties offering short-term accommodation services will face additional cleaning and GST charges.

Some short-term accommodation providers get $26 or $182 per week for a property that charges tenants $350 per night.

Properties located in areas frequented by tourists, such as the Mornington Peninsula in southern Victoria, will be hit harder by the new tax.

Rentals that charge visitors up to $500 per night will be charged $37 or $262 per week.

The tax will be introduced on New Year’s Day as it also includes cleaning costs, GST, service and administration charges.

The new law only applies to short-term rentals where guests stay at the property for less than 28 days.

Local councils across Victoria will now be able to limit the number of days on which short-term accommodation can be made available to renters.

Homeowners who rent out their main home for short stays will not be hit with the tax.

The tax does not include amounts charged for using a particular payment method, such as credit card fees.

The levy has been heavily criticized by tourism officials, who claim the measure will deter visitors from coming to Victoria over the festive period.

Felicia Mariani, chief executive of the Victorian Tourism Industry Council, said the new law is confusing and will make booking short-term accommodation unaffordable.

“With just six weeks from the time the legislation was passed in mid-November to when the levy comes into effect, the industry has really struggled to get to grips with the complexity of the tax collection guidelines,” said Mariani to the newspaper. Herald Sun.

‘These guidelines have also revealed that it is not just a 7.5 percent tax on housing costs.’

Deputy Liberal leader and former tennis star Sam Groth said taxpayers will bear the brunt of the new tax amid a cost-of-living crisis.

“Every dollar spent on Labor’s Airbnb tax is one less dollar spent on Victoria’s tourism sector, which supports local jobs and communities across the state,” Groth said.

About 50,000 properties offering short-term accommodation in Victoria will be hit with the tax from New Year’s Day (pictured, Mornington Peninsula)

State government figures show the levy will generate $60 million in revenue annually.

The money will be handed over to Homes Victoria, the Victorian government’s social housing and homelessness agency.

A Victorian government spokesperson told Daily Mail Australia the tax would help increase housing supply by encouraging investors to place properties on the long-term rental market.

“This is an important step towards making more properties available for long-term rental – and giving Victorian families more opportunities to find a home,” the spokesperson said.

“Brad Battin and the Liberals don’t care about helping Victorian families find a home, and they don’t care about more money being made available for social housing.”