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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.

By news@gippsland - 25th September 2023 - Back to News

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.

Source: http://gippsland.com/

Published by: news@gippsland.com

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  Six Victorian lifesavers have been awarded National Medals, recognising 15-25 years of dedicated volunteer service protecting the community and ensuring public safety in Australian waterways.
• South Gippsland Seniors Festival offers free and low-cost events to connect, create, and celebrate together
  South Gippsland celebrates Victorian Seniors Festival this October with 60+ free and low-cost events across nine towns, inviting over-60s to connect, create, celebrate, and enjoy community through sport, arts, learning, and fun.
• Tim Bull says East Gippsland faces a housing crisis, with social homes declining despite population growth
  Victoria’s social housing crisis deepens as Labor policies drive rental providers away, reducing stock. Tim Bull warns record waiting lists and rising homelessness demand urgent government action.
• Darren Chester supports reforming the Coalition to unite Liberals and Nationals and deliver stronger government for Australia
  Darren Chester welcomes the re-formed Coalition, united to hold Labor to account, focus on cost of living, families, regions and security, and develop sensible policies for a safer, stronger, fairer Australia.
• Gippsland CFA volunteers still wait for critical fire station upgrades amid $55M Labor funding cuts
  Gippsland CFA volunteers face years-long delays for safe, modern fire stations as Labor cuts $55 million, reducing equipment, compensation, and infrastructure, putting communities at risk and demanding urgent funding.
• Tim Bull says locals and community groups want stronger enforcement as illegal campers leave areas unkempt
  Tim Bull urges Environment Minister Dimopoulos to act on illegal campers along the Snowy River, balancing public access for tourists with enforcement and welfare oversight to protect local businesses.
• Gippsland New Energy Conference showcases Latrobe City as Australia's leading hub for renewable energy innovation
  Latrobe City hosted the 2025 Gippsland New Energy Conference, attracting 1,000 attendees and showcasing the region's renewable energy leadership, delivering major economic benefits and fostering industry, government, and community collaboration.
• Darren Chester meets new BRHS CEO Peter Abraham to discuss future opportunities for East Gippsland Healthcare
  Darren Chester met new BRHS CEO Peter Abraham to discuss healthcare challenges, commend local innovations improving patient care, and strengthen collaboration to deliver high-quality, accessible health services across East Gippsland.
• New drinking fountains installed in Sale and Briagolong Parks to promote health, sustainability and community wellbeing
  Gippsland Water and Wellington Shire Council have installed two new drinking fountains in Sale and Briagolong, promoting health, sustainability, and reusable bottles. Featuring artwork by Gunai artist Alice Pepper, they support community wellbeing.
• New drinking fountains installed in Sale and Briagolong Parks to promote health, sustainability and community wellbeing
  Gippsland Water and Wellington Shire Council have installed two new drinking fountains in Sale and Briagolong, promoting health, sustainability, and reusable bottles. Featuring artwork by Gunai artist Alice Pepper, they support community wellbeing.
• Regional all abilities participation grants is now open to boost inclusive sports opportunities for people with disability in regional communities
  The Allan Labor government's Regional All Abilities Participation Grants offer up to $25,000 for clubs to boost disability inclusion through equipment, training, travel support, and all-abilities sports programs.
• West Gippsland Landcare awarded $337,250 to transform landscapes, protect species, and enhance community green spaces statewide
  West Gippsland Landcare volunteers received $337,250 from 2025 Victorian Landcare Grants to restore landscapes, protect endangered species, enhance waterways, plant 30,000 trees, and engage communities in conservation projects.
• Melina Bath encourages increased funding for regional palliative care, ensuring dignity and support statewide
  Melina Bath warned underfunded regional palliative care forces terminally ill Victorians into hospitals instead of home, calling for urgent investment to ensure dignity, support, and equal access across eastern Victoria.
• Danny O’Brien urges Gippsland tobacco retailers to obtain licences as new state licensing scheme is enforced from 1 February 2026
  Danny O’Brien urges Gippsland tobacco retailers to comply with Victoria’s new licensing scheme, aiming to curb illegal sales, organised crime, and ensure consistent enforcement for safer regional communities.
• Bruthen and Buchan town centre upgrades boost tourism, safety, and local businesses with $3.8M government support
  Bruthen and Buchan town centre upgrades, supported by $3.8 million government funding, improve safety, accessibility, tourism, and local business, while celebrating Indigenous culture and supporting bushfire-affected communities.
• East Gippsland Council confirms compliance with 2025-26 rate cap, maintaining responsible financial management and community support
  East Gippsland Council has confirmed compliance with the 2025–26 Victorian rate cap, keeping increases below the 3% limit to ease cost-of-living pressures while maintaining essential services.
• Baw Baw Shire to gain two new kindergartens located at the Neerim South Primary School and Warragul Regional College opening in 2028
  Baw Baw Shire will gain two new kindergartens at Neerim South and Warragul, opening in 2028, easing local demand and supporting families as part of the State’s Best Start reforms.
• Have your say on the 2027 transition to Pre-Prep and help shape early learning in South Gippsland
  South Gippsland Shire Council is seeking feedback from parents and carers to help shape how the Victorian government's 2027 Pre-Prep program is delivered locally to meet community needs.
• East Gippsland welcomes 32 new citizens from 14 countries at Bairnsdale ceremony, celebrating diversity, and shared Australian values
  East Gippsland welcomed 32 new citizens from 14 countries at Bairnsdale, celebrating diversity, community spirit, and contributions of residents embracing their new Australian citizenship.
• Melina Bath says Indigenous burning and broad-scale fuel reduction are vital for proactive bushfire prevention
  Victoria’s fire season begins amid total bans, with experts warning mismanaged forests and inadequate fuel reduction under Labor leave communities exposed to devastating megafires.
• Bass Coast Council trials new multilingual coastal safety signage at high-risk beaches to reduce drowning incidents
  Bass Coast Council is trialling new multilingual coastal safety signage at high-risk beaches, providing hazard warnings, QR codes, and educational resources to improve visitor safety and reduce drowning incidents.
• Bass Coast Shire Council delivers new shared path linking Cowes and Ventnor, boosting transport safety and community connectivity
  Bass Coast Shire Council will deliver a new 2km Ventnor Road Shared Path, linking Cowes and Ventnor, improving safety, accessibility, and community connectivity. The $1.96m project is jointly funded with the Australian government.
• East Gippsland Water launches new Voice of Customer program to enhance service through feedback
  East Gippsland Water has launched a new Voice of Customer program, inviting feedback via SMS surveys to guide service improvements, with participants eligible for monthly $50 water bill credits.
• Danny O'Brien warns faulty firefighting vehicles are leaving local CFA Brigades under pressure ahead of bushfire season
  Danny O'Brien has criticised the Allan Labor government for failing to repair faulty firefighting vehicles, warning the issue is placing pressure on CFA brigades and reducing Gippsland's preparedness for bushfire season.