Double tax for Airbnbs as councils retain fee powers

The Victorian government is introducing a 7.5 per cent levy on short-stay platform bookings. (Diego Fedele/AAP PHOTOS)

Airbnb owners and users face a double tax whammy in Victoria after the state government backflipped on a key promise.

The Labor government on Tuesday introduced a long-awaited bill to parliament to impose a 7.5 per cent user-pays levy on short-stay platforms such as Airbnb and Stayz.