Gippsland › Latest news › Melina Bath MP
Victorian 7.5% tax on short stay accommodation by the Andrews Labor government hurts both tourists and locals
The new tax on short-stay accommodations in Victoria by the Labor government affects property owners, renters, and regional communities, exacerbating housing affordability issues.
The Andrews government's new tax on all short stay accommodation in Victoria is hurting more than tourists, as Labor continues to mismanage the state's finances. The Nationals Member for Eastern Victoria Region, Melina Bath said the 7.5 percent tax on short stay accommodation is Labor's latest cash grab for a broke Victoria. Ms Bath said short stay accommodation provides flexibility for people in many situations as well as visitors to our region.
Andrews government's 50th tax or fee increase, the Holiday and Tourism Tax, is poised to disproportionately impact regional communities, small businesses, and tourism spots in Victoria
Short stay tax impact
Ms Bath said, "Labor's new tax compromises the viability of mum and dad investors like Warragul property owner Brian Brewer who will be forced to pass increased costs onto renters. Mr Brewer hosts a variety of people in his short-term rentals including NDIS participants and families experiencing extenuating circumstances."
"Without flexible short stay accommodation, the chance of finding a conventional rental in eastern Victoria is almost non-existent. Labor's new tax will do nothing to address the fundamental causes of Victoria's housing affordability crisis," Ms Bath said.
Mr Brewer said with high demand, his short stay occupancy rate is at 100 percent. "My properties are often the only option for families to remain local and keep a roof over their head."
New tourism tax concerns
Labor's new Holiday and Tourism Tax is the 50th new or increased tax or charge introduced by the Andrews government since 2014. It's expected to directly hit regional communities, small businesses, and Victoria's tourism destinations the hardest.
Almost half of Victoria's 36,000 short stay accommodation properties are in regional Victoria. Member for Narracan Wayne Farnham said the short stay accommodation tax numbers didn't add up for regional Victorians. "All revenue raised by this tax will all go to Homes Victoria for social housing, with 75 percent of the revenue going to metropolitan Melbourne."
"It doesn't stack up that regional Victoria pays for 50 percent of construction but only gets tossed a measly 25 percent of the outcomes. Social housing is just as important in regional areas as it is in the city. Once again regional Victorians are being asked to pay the price for incompetence of the Andrews government," Mr Farnham said.
Pictures from Visit Victoria website.
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