Victoria unveils Airbnb tax in plan to build 800,000 new homes

September 25, 2023

Short stay rental properties in Victoria will be hit with a 7.5% tax as part of a raft of housing changes announced by the state government to unlock housing supply.  

After months of speculation, Victorian Premier Daniel Andrews on Wednesday confirmed it will implement a short stay accommodation levy – the first in the country – as part of its much-anticipated ‘Housing Statement’ package of housing reforms.

Government estimates show there are currently more than 36,000 short-stay accommodation places across the state on platforms like Airbnb and Stayz, with almost half in regional areas.

1

Victorian Premier Daniel Andrews has confirmed short-term accomodation will be hit with a levy. Picture: Luis Enrique Ascui


The government argued that homes on short-term accommodation platforms couldn’t be rented out on longer-term leases amid the country’s rental crisis.

It says revenue raised from the levy will go to Homes Victoria to build and maintain social and affordable housing across the state, including 25% for regional areas.

The levy has been slammed by the state opposition, who said it will add $100 to the cost of a weekend away in Victoria.

Proptrack senior economist Paul Ryan said the levy was designed to reduce the competitiveness of short-term stay accommodation, and will likely push a marginal number of property owners to either rent their homes out on longer-term leases, or sell up.

“It isn’t a silver bullet to the housing supply issues… but it will raise revenue to build more social housing, so it may have an impact in a secondary way by providing more funding to increase housing supply,” Mr Ryan said.

Plan to build 800,000 new homes

In the statement, the Victorian government set a target to build 800,000 new homes across the state over the next 10 years to accommodate Victoria’s booming population.

Victoria’s population is on track to reach 10.3 million by 2051, meaning the state will need 2.24 million new homes by then.

The government estimates that Victoria is set to build about 540,000 homes over the next decade and will need to build about 260,000 extra homes to hit its target.

Premier Andrews said the status quo is not an option.

“Whether you’re buying your first place, upsizing or downsizing as life changes, or renting – the work we’re doing will mean there’ll be a place you can afford, and that you can call home,” he said.

To deliver the 80,000 new homes per year, the Andrews government plans to speed up the planning system, accelerate the rollout of new social and affordable homes, strengthen renters’ rights and unlock new areas for developers to build more homes.

Under the plan, the government will make it easier for homeowners to build a granny flat on their property, removing the need for a planning permit if the property is less than 60 square metres.

A dedicated team will work to clear a backlog of 1,400 housing permit applications that have been stuck with councils for more than six months.

And the planning process will be streamlined for medium- to high-density residential developments that are worth at least $50 million in Melbourne, or $15 million in regional Victoria and deliver at least 10% affordable housing.

2

The Victorian government wants to build 800,000 new homes across the state over the next decade. Picture: Getty


It will introduce clear planning controls to deliver an additional 60,000 homes around 10 activity centres across Melbourne, including Chadstone, Frankston, Niddrie, Preston and Ringwood.

The government will also streamline the permit and planning assessment pathways to give builders, buyers and renovators more certainty about how long approvals will take.

45 government-owned sites will be rezoned to deliver about 9,000 homes across the state, with a target of 10% of affordable homes to be built across the sites.

Some 769 social housing dwellings will be built through the federal government’s Social Housing Accelerator on top of 12,000 homes from the Big Housing Build and more than 4,000 from other programs.

To support renters, the government will also extend laws around rental bidding. In 2021 real estate agents and landlords were banned from encouraging higher offers than the advertised price, but now it will become illegal to accept bids.

It will also establish a rental dispute organisation, introducing a portable rental bond scheme and other initiatives.

Housing statement draws mixed reaction

The housing statement has received mixed responses, with some property groups welcoming the plan while others have criticised its social housing initiatives.

Council to Homeless Persons chief executive officer Deborah Di Natale said the package fell short on social housing commitments.

“Behind the big headline numbers, there’s crumbs for social housing,” Ms Di Natale said.

“We need at least 60,000 new public and community homes to be built in Victoria over a decade. Unfortunately there’s nothing like that in these announcements.”

Property Council Victorian executive director Cath Evans said the Housing Statement was a positive step for Victoria that provided a clear policy pathway for the delivery of much needed housing for Victorians.

“This ambitious and comprehensive plan will enable our industry to activate all types of housing, providing choice to Victorians while also enabling delivery of the volume of new dwellings that the market needs in order to address the affordability crisis,” Ms Evans said.

Victoria’s housing changes come after the NSW government announced a package of housing initiatives in its state budget yesterday.

They follow last month’s National Cabinet plans to build 1.2 million new homes across Australia over five years.

Federal, state and territory leaders agreed to build an extra 200,000 homes on top of the 1 million home target set out in last year’s National Housing Accord.

The federal government promised $3 billion in new funding incentives for the states and territories that built more than their share of the new homes.

Source: realestate.com.au

You might be also interested in

Capi 56e30725b01672b092bf341c573fe07f Db1da0880fd14f085eed026abf97f14d
Federal Budget 2024: Tax cuts expected to boost borrowing power
A typical homebuyer’s borrowing capacity will rise by tens of thousands of dollars next financial year as a result of tax cuts that form part of a federal budget designed
VIEW POST
Gettyimages 2006354243
Federal Budget 2024: $6.2b housing splash
The federal government has unveiled $6.2 billion in new housing spending in this year’s budget, with a major focus on housing for Aussies doing it tough. With near record low
VIEW POST
Money 7864149cfb2
Federal Budget 2024: How this year’s budget tackles the rising cost of living
Tax cuts, energy bill relief and rent assistance are among the measures in this year’s federal budget aimed at bringing down the rising cost of living. Federal treasurer Jim Chalmers
VIEW POST
Gettyimages 622528618
Is the mortgage loyalty tax a thing of the past?
New and existing home loan customers are now paying almost the same interest rates, with the difference shrinking to the smallest it’s been in the past five years. Since the
VIEW POST
West Hoxton
Budget 2024: The roads, rail and regional hotspots getting billions
The 2024 federal budget has unveiled a range of initiatives aimed at tackling Australia’s housing issues head-on, but it’s also provided billions of dollars to build more infrastructure across the
VIEW POST
Capi 1e0e766d2d5233a56cca5d4cd86b5710 09df85bc29deb103c8cadb5a2c2c7897
Cost of living: underinsurance effects 200,000 Aussies
Rising costs and affordability challenges has pushed Australia into an underinsurance crisis, which could cost homeowners hundreds of thousands of dollars when faced with disaster. In Australia, 13.1 million homeowners
VIEW POST
Gettyimages 908296490 88041054c55
Biggest surprises of Australia’s rental market revealed
In some parts of Australia, rents are bafflingly high, while in others, they’re surprisingly affordable. In some cities, it’s the areas you’d least expect that are showing the highest rental
VIEW POST
123
Higher for longer? The new cash rate paradigm
Research Director Tim Lawless unpacks what today’s cash rate decision means for the housing market. The interest rate outlook has changed remarkably in a short space of time. It was
VIEW POST
Capi Eaca2a4a670f7182c240bbb3ada7028a Dde6cc44b571f6374cf0e9f8edab769b
Rent crisis: Vast majority of Victoria now home to ‘extreme rental pain’, but silver lining for Docklands
More than three-quarters of Victoria is now in extreme rental pain after the state notched the second-fastest rent rises in the country across the past year. But there are signs
VIEW POST
Frankston 913595467e9
Why now is the time to invest in this unloved state, and where to buy
Victoria’s property investment prospects remain strong despite prices going backwards and an ‘outrageous cash grab’ by the state government that has prompted many investors to flee, according to property experts.
VIEW POST

Get your Free Property Guide.

Here goes your text ... Select any part of your text to access the formatting toolbar.

Get your free Sales Report for Victoria unveils Airbnb tax in plan to build 800,000 new homes

Get your free Sales Report for Victoria unveils Airbnb tax in plan to build 800,000 new homes

Subscribe to hear the latest

Start The Conversation Today.

Call us on:

1300 850 730

Request a Callback:

Send us a Message:

Privacy Policy

Get your Free Property Guide

Get your free Suburb Report for Victoria unveils Airbnb tax in plan to build 800,000 new homes

Privacy Policy

Who we are

Suggested text: Our website address is: https://motionproperty.com.au.

Comments

Suggested text: When visitors leave comments on the site we collect the data shown in the comments form, and also the visitor’s IP address and browser user agent string to help spam detection.

An anonymized string created from your email address (also called a hash) may be provided to the Gravatar service to see if you are using it. The Gravatar service privacy policy is available here: https://automattic.com/privacy/. After approval of your comment, your profile picture is visible to the public in the context of your comment.

Media

Suggested text: If you upload images to the website, you should avoid uploading images with embedded location data (EXIF GPS) included. Visitors to the website can download and extract any location data from images on the website.

Cookies

Suggested text: If you leave a comment on our site you may opt-in to saving your name, email address and website in cookies. These are for your convenience so that you do not have to fill in your details again when you leave another comment. These cookies will last for one year.

If you visit our login page, we will set a temporary cookie to determine if your browser accepts cookies. This cookie contains no personal data and is discarded when you close your browser.

When you log in, we will also set up several cookies to save your login information and your screen display choices. Login cookies last for two days, and screen options cookies last for a year. If you select “Remember Me”, your login will persist for two weeks. If you log out of your account, the login cookies will be removed.

If you edit or publish an article, an additional cookie will be saved in your browser. This cookie includes no personal data and simply indicates the post ID of the article you just edited. It expires after 1 day.

Embedded content from other websites

Suggested text: Articles on this site may include embedded content (e.g. videos, images, articles, etc.). Embedded content from other websites behaves in the exact same way as if the visitor has visited the other website.

These websites may collect data about you, use cookies, embed additional third-party tracking, and monitor your interaction with that embedded content, including tracking your interaction with the embedded content if you have an account and are logged in to that website.

Who we share your data with

Suggested text: If you request a password reset, your IP address will be included in the reset email.

How long we retain your data

Suggested text: If you leave a comment, the comment and its metadata are retained indefinitely. This is so we can recognize and approve any follow-up comments automatically instead of holding them in a moderation queue.

For users that register on our website (if any), we also store the personal information they provide in their user profile. All users can see, edit, or delete their personal information at any time (except they cannot change their username). Website administrators can also see and edit that information.

What rights you have over your data

Suggested text: If you have an account on this site, or have left comments, you can request to receive an exported file of the personal data we hold about you, including any data you have provided to us. You can also request that we erase any personal data we hold about you. This does not include any data we are obliged to keep for administrative, legal, or security purposes.

Where your data is sent

Suggested text: Visitor comments may be checked through an automated spam detection service.

Get your Free PDF copy of Make Money Simple Again