News

Short-stay levy introduced

By Georgia Tacey

Jan 14, 2025

The new levy will hit Victorian border towns along the Murray River the hardest, according to Wendy Lovell. Photo by Lua Ikenasio

The new short-stay levy has come into effect in Victoria.

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The much-debated bill came into law on January 1, introducing a 7.5 per cent levy on short-stay accommodation.

State Member for Northern Victoria Wendy Lovell said the new levy would hit Victorian border towns along the Murray River the hardest.

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

“Tourists will be tempted to stay in cheaper accommodation over the river in Moama rather than Echuca, for example, and this tax is just another blow to regional small businesses by the Allan Labor Government.”

The levy does not apply to motels, hotels and hostels, as well as someone’s principal place of residence, whether they own or rent the property. All other short-term stays will have to pay the levy.

Revenue raised by the levy will fund Homes Victoria, with 25 per cent of those funds being invested into building homes in regional Victoria.

More information on the levy can be found at tinyurl.com/mphns58r