Victorian SRO Short Stay Levy – Part 2: Payment Timing, Thresholds & Record Keeping

In our previous article, we broke down the scope and inclusions of the Victorian Short Stay Levy, introduced to help manage housing supply by targeting short-term accommodation properties across the state. In Part 2, we take a closer look at how and when the levy must be paid, along with a reminder on the critical importance of good record keeping.

When Is the Levy Payable?

The timing of payment depends on the total value of short stay bookings at a given property within a calendar year:

• Quarterly payments are required if the total value of stays exceeds $75,000 in a calendar year.
  In this case, owners (or providers on their behalf) must submit quarterly returns, with the levy payable within 30 days of each quarter's end.

• Annual payments apply if the total value of short stay bookings is $75,000 or less in a calendar year.
  A single annual return will be due at the end of the calendar year, with the levy also payable within 30 days of that return period.

This tiered system ensures that higher-volume short stay operators are reporting and paying more frequently, while lower-volume hosts can manage their obligations once per year.

Record Keeping: Your Legal Safety Net

Accurate and detailed record keeping is essential for compliance. Hosts and owners must track all elements that contribute to the levy base, including:

• Nightly accommodation rates

• Cleaning and guest service fees

• Late check-out or early check-in fees

• GST collected

• Any amounts excluded from the levy (such as bank fees or damage charges)

If you’re managing a property through a platform like Airbnb, these figures may be partially tracked for you — but it’s still your responsibility as the owner to ensure the numbers are correct.

Should you lease your property privately, without using an intermediary platform, the entire burden of reporting, calculating, and paying the levy falls to you.

Failure to lodge and pay on time could result in penalties or interest, so it’s crucial to:

• Keep regular, itemised records of every booking

• Separate levy-includable amounts from excluded ones

• Review your turnover regularly to assess whether you fall above or below the $75,000 threshold

• Set reminders ahead of return due dates

Next Steps for Hosts and Managers

• Review your current systems for tracking income and fees

• Set up automated reminders for levy return due dates

• Talk to your accountant or advisor about compliance strategies

• If managing multiple properties, consider digital tools or booking platforms that streamline levy-related reporting

This new levy adds another layer of complexity to short stay property management, but with clear processes and proactive planning, you can stay ahead and compliant.

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