Lovell blasts ‘holiday tax’, fears economic decline for towns like Cobram

By Gabriel Garcia

Sep 25, 2023

Tourist mecca no more: Fears have been raised that towns like Cobram, with its beautiful Thompsons Beach, will be devoid of tourists due to a new tax on short-stay accommodation. Photo by Gabriel Garcia

State Member for the Northern Victoria Region Wendy Lovell has come out firing against the state government’s new 7.5 per cent tax on short-stay accommodation.

Hold tight - we’re checking permissions before loading more content

The Liberal MP said the Andrews Government’s new Holiday and Tourism Tax would add more than $100 to the cost of a weekend away for Victorians, and would impact the economies of Victorian tourist destinations located on the Murray River.

However, a Victorian Government spokesperson said the move was designed to ease the chronic housing crisis.

“Regional Victoria, including border towns, have great nationally and internationally renown attractions,” the spokesperson said.

“This will not change because of a modest levy invested back into regional communities to help house more regional Victorians.”

Ms Lovell feared that NSW towns on the Murray would benefit from tourists seeking the same experience without the added prices.

“Tourists will decide to stay in cheaper accommodation in Moama rather than Echuca, for example, and this tax is just another blow to regional small businesses by the uncaring and broke Andrews Labor Government,” Ms Lovell said.

Almost half of Victoria’s 36,000 short-stay accommodation properties, such as Airbnb or Stayz, are in regional Victoria, and Ms Lovell said the new tax would not only negatively affect accommodation providers but ultimately reduce tourism revenue.

“While Labor’s Holiday and Tourism Tax will hurt all Victorian short-stay accommodation providers, those in Victorian border towns in my electorate such as Echuca, Cobram, Yarrawonga, Mildura and Wodonga will be impacted the most,” Ms Lovell said.

The government spokesperson refuted the claim that border towns were going to be uniquely impacted.

“The levy will not impact regional tourism,” the spokesperson said.

“It applies equally across Victoria with 25 per cent of the revenue to go towards regional Victoria to pay for more and better social and affordable housing.”