New 7.5% Airbnb tax in Victoria

Andrews unveils 7.5pc Airbnb levy in housing shake-up

The Victorian government has unveiled a “long-term” plan to improve housing supply and affordability in the state through 30 new initiatives, Premier Daniel Andrews has said.

Among the initiatives is a target to build 800,000 new homes over 10 years – 80,000 each year – in partnership with the housing industry.

The plan also includes a 7.5 per cent levy on short-term accommodation, making Victoria the first state to enforce a levy on Airbnbs.

“The owners of the short-term properties don’t pay it. The person who rents the short-term accommodation pays it. It’s a modest charge at $7.50 per $100,” Andrews said.

The Andrews government will spend $2 million on a rental support package, introduce a portable rental bond scheme and extend notice to vacate periods to 90 days.

An initiative to unlock surplus land will see the government rezone public land to deliver 9000 homes across 45 sites.

Andrews will boost the homebuyer fund by $500 million. Under the scheme, the government takes a 25 per cent stake in homes.

The plan will also change the type of home which requires a permit. Single dwellings on lots smaller than 300 square metres and not covered by an overlay will no longer require a planning permit