Short Stay Levy Victoria: How the 7.5% Levy Works in 2026
The short stay levy is a 7.5% charge on short stays in Victorian homes, and it has applied since 1 January 2025. A short stay is a stay of less than 28 days in a row in the same property. The State Revenue Office runs it, and the money funds social and affordable housing.
This guide explains who pays, which homes are in or out, and how the levy is worked out. It also covers when hosts must register and how often they lodge returns. Rules change, so confirm the current position with the State Revenue Office before you act.
Key Takeaways
Victoria charges a 7.5% levy on the total booking fee for stays of less than 28 days in a row, from 1 January 2025.
Booking platforms such as Airbnb, Stayz and Booking.com collect and pay the levy on their bookings, while hosts pay it on direct bookings.
A host's principal place of residence is excluded, along with hotels, motels, hostels and rooms that share a kitchen with the main home.
Hosts with $75,000 or more in yearly booking fees for a property lodge quarterly, while smaller hosts lodge once a year by 30 January.
Hosts taking direct bookings should register with the State Revenue Office and keep clean records, which ChargeAutomation reports and itemised invoices can help organise.
What Is the Short Stay Levy and Who Pays It?
The levy is a 7.5% charge on the total booking fee for each short stay in Victoria. It applies to stays of less than 28 days in a row in the same property, not counting the checkout day. Revenue funds social and affordable housing, with 25% invested in regional Victoria. The law behind it is the Short Stay Levy Act 2024.
Who pays depends on how the guest booked. If the booking is made through a platform, such as Airbnb, Stayz or Booking.com, the platform pays. If the owner or tenant accepts the booking directly, that person pays. So the Airbnb tax Victoria hosts hear about is paid by Airbnb on Airbnb bookings.
The short stay accommodation levy covers more than whole homes. It applies to an entire house or flat and to a private room in a home that is not the owner's main residence. It also covers a granny flat, tiny home or caravan that can be lived in separately. A caravan is only covered if it stays at one site for the whole booking.
The levy's exclusion and exemption rules leave out these types of property:
A home that is the owner's or renter's principal place of residence
A unit that shares an entrance, kitchen or bathroom with the main home
Hotels, motels, hostels and other commercial residential premises
Houseboats the guest can move during the stay
Staff housing at schools, health sites or farms
Rooming houses, retirement villages and student housing
Crisis housing run by a non-profit with state homelessness funding
How to Calculate and Lodge the Short Stay Levy
The levy is 7.5% of the total booking fee, so a $1,000 booking carries a $75 levy. The booking fee includes the nightly rate, cleaning fees, GST and any late checkout fee. It does not include credit card fees, other payment charges or charges for damage. If the levy is not a multiple of 5 cents, round it down.
Hosts who accept direct bookings must register before their first return. Hosts who take every booking through a platform do not need to register. If your home is excluded, tell each platform with the SRO declaration form, so the levy is not added to your bookings.
How often you lodge depends on your booking fees for each property. At $75,000 or more a year, you lodge and pay quarterly, within 30 days of the end of each quarter. Below $75,000, you lodge once a year by 30 January. If you pass $75,000 during the year, you switch to quarterly for the rest of the year.
Victoria's short stay tax works alongside other short-term rental regulations Victoria hosts must follow, including:
Registration with the State Revenue Office for direct bookings
Quarterly or yearly returns based on the $75,000 threshold
Payment by credit card or one-off direct debit in the online portal
BPAY or credit card for a levy assessment
A declaration to platforms when a property is excluded
Owners corporation rules that can ban short stays in non-resident lots since 1 January 2025
How ChargeAutomation Supports Victorian Short Stay Hosts
Registering for the levy, lodging returns and paying the State Revenue Office are handled directly by the host. ChargeAutomation is not part of that process. Once a property is taking direct bookings, though, hosts need accurate booking fee figures for every stay.
ChargeAutomation creates itemised receipts and invoices with custom line items and tax handling. The nightly rate, cleaning fee and late checkout fee each show as their own line. Reports with XLSX and CSV export let hosts pull booking and payment data for each quarterly or yearly return. Hosts who choose to show the levy to guests can add it as a separate line on direct bookings.
Damage charges sit outside the booking fee for the levy. ChargeAutomation keeps security deposit holds and captures separate from the stay price, which helps keep the figures clean. On direct bookings, hosts can also verify guests with a live selfie through Stripe Identity. Chargeback and fraud protection uses 3D Secure payments and digital rental agreements.
ChargeAutomation connects with 50+ PMS platforms, such as Guesty, Hostaway, Lodgify and Hostfully. Start for free at chargeautomation.com.
Victorian hosts use these ChargeAutomation features to manage the short term rental tax Victoria applies to direct bookings:
Itemised invoices showing nightly rate, cleaning and late checkout fees
A separate levy line on direct bookings where the host chooses to show it
Booking and transaction reports with XLSX and CSV export
Security deposit holds kept apart from the booking fee
Guest ID checks with a live selfie through Stripe Identity on direct bookings
Chargeback and fraud protection with 3D Secure
Digital rental agreements with e-signatures
Frequently Asked Questions
Does Airbnb collect the levy on Victorian short stays?
Yes, booking platforms such as Airbnb pay the levy on bookings made through them. The SRO names Airbnb, Stayz and Booking.com as platforms that must register, collect and lodge. Hosts only pay the levy themselves on bookings they accept directly.
Is the short stay accommodation tax charged on my own home?
No, a property that is your principal place of residence is excluded. Rooms that share an entrance, kitchen or bathroom with the main home are also excluded. Tell your platforms with the SRO declaration form so they do not add the levy.
Is GST on short stay accommodation included in the levy amount?
Yes, the 7.5% is worked out on the total booking fee, and that fee includes GST. It also includes cleaning fees and any late checkout fee. Credit card fees and damage charges are left out.
Is Victoria's levy a new Victorian tax on holiday homes?
Yes, it can apply to a holiday home rented for short stays, unless the home is excluded. It has applied since 1 January 2025 to stays of less than 28 days in a row. A holiday home used only by its owners and never let does not take short stay bookings, so the levy does not apply.
How often do hosts pay the short term rental levy in Victoria?
It depends on your booking fees for each property. Hosts with $75,000 or more a year lodge and pay quarterly, within 30 days of each quarter's end. Hosts below $75,000 lodge and pay once a year by 30 January.
