Understanding the Victorian SRO Short Stay Levy: What Hosts Need to Know
As of 1 January 2025, Victoria introduced a new Short Stay Levy aimed at addressing housing affordability and availability across the state. This levy, administered by the State Revenue Office (SRO), affects owners of properties listed as short stay accommodations — such as those on Airbnb, Stayz, and similar platforms. If you’re a property owner or regularly use short stay accommodation in Victoria, here’s what you need to know.
How the Short Stay Levy Works
The levy is charged at 7.5% of the total value of the stay. This figure is not based solely on the nightly rate, but on a broader definition of “value,” which includes:
Accommodation charges (the nightly rate)
Guest service fees (often charged by booking platforms)
Cleaning fees
Late check-out fees
Levy contributions (if passed onto guests)
GST payable on the stay
This means that even optional charges such as a late checkout or cleaning fee form part of the levy base, making it essential for hosts to keep meticulous records and calculate totals correctly.
What the Levy Does Not Include
While the scope is broad, certain charges are excluded from the levy. These include:
Bank fees
Optional add-ons such as airport transfers, spa treatments, or tours
Bundled packages (e.g., dinner and accommodation combos)
Gift vouchers provided as part of a booking
Damage-related charges or fees
Refunds on all or part of the booking
These exclusions aim to focus the levy on the core accommodation service rather than peripheral or optional costs.
Who Pays the Levy?
The owner of the short stay property is ultimately liable for the levy. However, in most cases, payment will be handled via the short stay accommodation provider — such as Airbnb or Stayz — who will collect and remit the levy on the owner’s behalf.
For properties that are leased privately, without the use of an intermediary platform, the owner is directly responsible for calculating and paying the levy to the SRO.
Why This Matters
The levy is part of a broader housing strategy by the Victorian Government, aiming to reduce the number of long-term rental properties being used as short-term stays. By introducing this levy, the government hopes to strike a balance between supporting tourism and addressing housing shortages in high-demand areas.
Takeaway for Property Owners
If you're leasing out a property as a short stay in Victoria:
Review your pricing structure to account for the 7.5% levy.
Understand what is included and excluded in the levy base.
Ensure accurate record-keeping and tax compliance.
Stay informed on updates from the SRO, especially if you manage bookings independently.
Whether you're a host or a guest, awareness of the Short Stay Levy will help avoid surprises and ensure transparency in your travel or rental business.
Further Information:
If you have any legal questions relating to the above, please contact us through our online form or via email at hello@legalsynthesis.com.au.
DISCLAIMER:
The information in this article is of a general nature. It does not constitute formal legal advice, and should not be relied on as such. If you are seeking legal advice about a specific matter please contact us to discuss.