Australian-first 7.5% levy to hit all Airbnb and short-stay accomodation in Victoria

Lockboxes holding keys outside an apartment building. Victoria has announced a 7.5% levy on short-stay accommodation from 2025. Photograph: Robert K Chin/Alamy

Australia’s first widespread levy on short-stay accommodation and the redevelopment of 44 monolithic public housing towers have been announced by the Victorian government as part of an overhaul of policy.

The 7.5% levy on platforms such as Airbnb and Stayz, announced by the premier, Daniel Andrews, on Wednesday, is expected to raise about $70m annually to fund social and affordable housing.