‘I’m not going to rule that in or out’: Daniel Andrews coy on reports Victoria could soon impose a 7.5 per cent levy on short stays

‘I’m not going to rule that in or out’: Daniel Andrews coy on reports Victoria could soon impose a 7.5 per cent levy on short stays
  • PublishedSeptember 18, 2023

Daniel Andrews has declared Victoria is set for “substantive, common sense” changes to housing but has refused to say what that will mean for short-term accommodation.     

The Victorian Premier was pressed on Monday about whether the government will tax platforms including Airbnb as part of its soon-to-be released housing statement.

The questions from ABC Radio Melbourne’s Raf Epstein came after it was reported last week a levy on short stays of up to 7.5 per cent was set to discussed by cabinet.

The Australian first consumer-facing levy would add about $42 a night to short-term accommodation on the Mornington Peninsula and $17 to stays in Melbourne. 

Mr Andrews declined to confirm or deny whether the tax would be implemented, instead pointing to the fact the housing statement will be “released in due course”.  

Daniel Andrews was asked on Monday whether his government will impose a tax on short-stay platforms such as Airbnb. Picture: NCA NewsWire / Luis Enrique Ascui

Daniel Andrews was asked on Monday whether his government will impose a tax on short-stay platforms such as Airbnb. Picture: NCA NewsWire / Luis Enrique Ascui

“I’m not going to rule that in or out. What I am going to say to you though is there’s between 30 and 40,000 homes that are being Aribnb’d, or other platforms,” he said.

“So they’re short stay, which means they’re not available for someone to… rent on a longer term basis. That is a real thing.

“It’s not to be critical of short stay, people obviously use those different platforms and it suits them.

“But at the same time, there’s no denying that that means there are a significant number of properties that would have, 10 years ago, 15 years ago, been available for longer term rental… they’re not available because of that.”

The housing statement will provide the government with a blueprint to boost supply, with Mr Andrews saying there needed to be 1.6 to 2 million extra homes by 2050.

The government is understood to be also considering changes to council planning powers and reforms to increase the number of affordable homes in Victoria.

The mooted changes to short-term accommodation has been one of the most contentious issues, sparking backlash from the opposition and tourism bodies

But Mr Andrews said the government “can’t be scared off from reform by chasing 100 per cent agreement on everything”.

“If you do that you will get precisely nothing done,” he said.

“You’ve got to find a balance point, you’ve got to be fair, you’ve got to look at all the different angles, all the different arguments.

“But we’ve got to get more houses built. Because only through more houses being built, more supply, will we get prices down.”

SOURCE: SKYNEWS

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