How Your Favorite Airbnb Getaways Could Disappear Overnight: The Surprising New Powers Your Local Council Just Received

As we all know, the charm of a local getaway has been revolutionized by platforms like Airbnb, offering unique and personal alternatives to traditional accommodation. However, a recent development in Victoria could see some of these beloved short-term rentals vanish from our travel plans. The Victorian government has introduced a new tax Bill that, if passed, will grant local councils the power to ban Airbnbs and similar short-term accommodations.

This move is part of a broader effort to address the affordable housing crisis, with the government aiming to encourage property investors to shift their focus back to the long-term rental market. The proposed Short Stay Levy Bill includes a 7.5 per cent tax on short-stay investments, both in metropolitan and rural areas, set to take effect on January 1, 2025.


Treasurer Tim Pallas has emphasized that this Bill will allow councils to make 'area specific decisions,' which could include imposing additional charges and limiting the number of days a property can be listed as a short-term rental. This is a significant pivot from previous plans that would have seen council charges scrapped, meaning Airbnb operators could now face a double whammy of council and state government levy fees.


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Under a new tax bill, Victorian local councils may gain new powers to ban or regulate short-term rentals like Airbnb. Credit: Shutterstock


The Victorian Tourism Industry Council (VTIC) has expressed serious concerns about the potential repercussions of this Bill. VTIC chief executive Felicia Mariani highlighted the lack of engagement with the tourism industry and the need for consultation to avoid crippling an industry that is still recovering from the impacts of the pandemic.


The industry is now in a precarious position, with the possibility of local councils imposing their own tax on top of the state government levy. This could result in a tax burden of 15 to 20 per cent or more, which would undoubtedly have a significant impact on the viability of short-term rentals.

This isn't just happening in Victoria. In Brisbane, a new permit system was introduced this year for the city’s 4,430 active listings. This came after a taskforce examined the effects of the short-stay market, with the goal of increasing accountability among property owners.

The Queensland government has also called for the creation of a register of all short-term rentals, while the NSW government's review found that thousands of homes were sitting empty for most of the year. In response, local councils, such as Byron Bay, are introducing caps on stays, with a 60-day limit set to commence on September 26.


For our readers who enjoy the convenience and charm of short-term rentals, these changes could have a significant impact on your travel plans. It's a complex issue, balancing the need for affordable housing with the benefits that short-term rentals bring to the tourism industry and local economies.
Key Takeaways

  • Victorian local councils may soon be given new powers to ban or regulate short-term rentals such as Airbnb under a new tax Bill.
  • A proposed 7.5 per cent Short Stay Levy is intended to encourage investors to put their properties back on the long-term rental market and is set to take effect on 1 January 2025.
  • The Victorian Tourism Industry Council (VTIC) has expressed concern over the impact of the Bill and the added tax burden on the tourism industry, urging for more industry consultation.
  • In response to housing shortages and the impacts of short-stays, Brisbane has implemented a new permit system, while other Australian states and councils review or introduce regulations for short-term accommodations.
We'd love to hear your thoughts on this matter. Have you had memorable experiences at an Airbnb that you'd hate to see disappear? Or do you believe that the housing market should take precedence over short-term rentals? Share your opinions in the comments below, and let's discuss the future of our local getaways.
 
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This is bad, and I don't see how it helps the people who sleep rough.. they can't afford accommodation...so how does that help a lot if people who can't afford this..I believe long turn rent is something like $850 dollars a week..which is totally unrealistic....
 
So typical of useless politicians that can't forward plan and then expect the ordinary people to bail the morons out.
The greatest debacle is the total disregard in replacing the current power stations before their use by date or usable economic life.
Now all the country is paying for their indicision and total lack of duty. They get in, cruise for 4 years and expect taxes to pay for their comfy retirement for the rest of their lives.
 
Having been a superhost with AirBnB and as live in hosts, this type of accommodation for holidaymakers and travellers is often more affordable and more homelike which makes it a popular choice. We have also been guests using AirBnB and enjoyed this type of accommodation instead of sterile motel rooms. Looks like people will be in danger of losing that freedom of choice because of inadequacy of our governments maintaining a supply of affordable public housing. I started married life in public rental housing. Most of it got sold off in the 80's/90's. Big mistake!!
 
When this new taxis implemented, will the owners of the properties affected be able to claim the tax on their tax returns claiming additional costs for running a business ?

To me it appears it could well be a legitimate claim of costs. "?"

Is it a disguise to raise more money for the "Broke" Vic., state government treasury to raise much needed funds ?

Will these "?" be answered, &, by whom ? It just creates another "?"

Sorry about that. "?"
 
This is bad, and I don't see how it helps the people who sleep rough.. they can't afford accommodation...so how does that help a lot if people who can't afford this..I believe long turn rent is something like $850 dollars a week..which is totally unrealistic....
$85o a week is my old rent, new rent $900.00
 

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