The Victorian Government is planning to put a 7.5% levy on all short-stay accommodation.
👉 Background: Since Airbnb launched in Australia back in 2012, it has had over 350,000 Australian properties listed for short stays... including 36,000 in Victoria right now. And that means these places are not available to rent for Victorian residents.
👉 What happened: So now, the Victorian Government has announced a major reform. The plan is to put a 7.5% levy on all short-stay accommodation from 2025 to reduce the number of short-stay properties and increase options for renters.
👉 What else: But Airbnb and Stayz aren't the only ones unimpressed. The tourism industry body is also concerned because of the cost-pass through.
💡Cost pass-through is where the burden of a tax or fee doesn't stay with the entity that is initially taxed. It usually ends up being passed onto the end consumer.
💡So while it may seem like this tax is aimed at landlords or Airbnb hosts, it's likely that these costs will actually be passed onto the tourists in the form of increased prices.
💡We've seen this quite recently with retailers, like Woolies and Coles, who increased their food prices due to the rising costs of fuel and warehousing. And ultimately, these costs were passed onto the local shoppers.
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