New powers for councils to cap short-term accommodation as Victoria moves to 7.5% ‘Airbnb tax’

The Victorian government will also grant local councils and owners’ corporations powers to ban or limit short-stay accommodation. Photograph: Joel Carrett/AAP

The Victorian government will grant local councils new powers to limit short-stay accommodation as it moves to introduce a 7.5% levy on properties listed on platforms like Airbnb and Stayz.

The Allan government will on Tuesday introduce legislation for its nation-first levy – which some have dubbed the “Airbnb tax” – that will begin on 1 January 2025. Properties that are the owner’s primary residence will be exempt from the short-stay levy, as well as hotels, motels and caravan parks.