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Danny O'Brien warns that new short stay tax will hurt Gippsland tourism and small hosts

The Allan Labor government's new short stay tax will hurt Gippsland tourism, warns Nationals MP Danny O'Brien. He argues the 7.5% levy on platforms like Airbnb won't solve the housing crisis and will discourage regional tourism.

By news@gippsland - 17th September 2024 - Back to News

The introduction of another new tax by the Allan Labor government will be another setback for Gippsland tourism. The Nationals Member for Gippsland South Danny O'Brien said The Nationals and Liberals had opposed the new short stay levy in Parliament last week as it will be a further drag on regional tourism. Mr O'Brien said the tax, which focuses on short stay accommodation provided through such platforms as Airbnb and Stayz, will not address the problem it is targeted at.

The government's bill allocates only 25% of short stay funds to regional Victoria, disadvantageous to local hosts and tourism. It exacerbates rental shortages and requires a policy rethink

Tax fails economics

Mr O'Brien said, "The government is quite rightly seeking to encourage housing to be returned to the rental market given the housing crisis we have in this state but it has provided no evidence that the 7.5 per cent tax on short stay accommodation will do that. Indeed simple economics would tell you that it won't be enough."

"Already landlords are faced with increased land tax, a suite of new rental laws introduced in 2021 and new forthcoming minimum rental standards later this year. If the government thinks that all those disincentives will be overcome by imposing a tax on Airbnb, then it has clearly failed economics," he said.

Tax impacts regions

Mr O'Brien said the tax would hurt many small, regional and often female homeowners who seek to make a little money. "The government itself says that 50 percent of short stay accommodation residences are in regional Victoria, but its Bill proposal is only returning 25 percent of that to our regions in new social housing funds.

"This is a case of Labor robbing from the poor to give to the rich. It will also be a disincentive for people to holiday in our regions while doing very little to address the shortage of rental accommodation," he said.

"The government needs to go back to the drawing board with its rules around renting in this state because it has clearly provided a disincentive to rental providers to put properties on the market and rents have been soaring across the state as a result," Mr O'Brien said. The short stay levy, should it pass the upper house, is scheduled to be introduced from the 1st of January 2025.

Pictures from Visit Gippsland website.

Source: http://gippsland.com/

Published by: news@gippsland.com