The Allan Labor Government’s decision to introduce a 7.5% tax on short-stay accommodation, such as Airbnb, has been labelled a “severe setback for regional communities” by The Nationals’ Member for Shepparton District, Kim O’Keeffe.
The Short Stay Levy Bill, which will apply to all bookings from 1 January 2025, will also allow local councils to ban short stays and limit the number of days properties can be listed.
“Labor’s latest cash grab on short-stay rentals has once again highlighted Victoria’s desperate financial position,” Mrs O’Keeffe said.
“I recently met with Ian McKenzie, the owner of Numurkah Apartments, who said that people across various sectors use his accommodation. The region also hosts many sporting events, and we know that there is a significant accommodation shortage to meet the already increasing demand.”
Mrs O’Keeffe said that regional Victorian towns rely on tourism, filling accommodations and significantly boosting local economies, especially since the industry is still recovering from COVID.
“Instead of supporting their recovery, Labor is making it harder by taking more money away,” Mrs O’Keeffe said.
A concern raised by industry leaders is the government’s lack of consultation.
“I’ve heard from the Executive Director of the Short-Term Accommodation Association Australia, Keiran Craig-Jones, who has raised concerns about the lack of consultation with the industry before this tax was introduced,” Mrs O’Keeffe said.
Mrs O’Keeffe also pointed out the government’s contradictions on housing.
“On one hand, the government claims this tax is about freeing up properties for long-term rentals, yet they expect to raise $60 million from properties that remain in short-term accommodation. This clearly shows that the government is relying on a significant number of properties staying short-term to fill their budget gaps,” Mrs O’Keeffe said.
“The $60 million this tax is expected to raise is being taken directly from small business owners who are already struggling. Instead of addressing their own cost blowouts and financial mismanagement, they are forcing small businesses to shoulder the cost of maintaining government assets.”
“This cost will be passed on to the consumer during a cost-of-living crisis, which will significantly impact visitation to the regions, taking away millions of dollars from the economy.
“Labor can’t manage money, can’t manage projects, and regional tourism and small businesses are paying the price.”