Local Airbnb rules2026 25 sources cited

Is Airbnb Legal in Melbourne? 2026 Rules, Permits & Taxes

Source: AirROI Reviewed by , Founder @ AirROI Rules checked

From 24 official sources and 1 Airbnb help page. Not legal advice.

The short answer

Melbourne Airbnb Rules in Brief

Map of Airbnb listings in Melbourne Browse the live Melbourne Airbnb market See Every Melbourne Listing

Revenue, occupancy and nightly rates are in the Melbourne Airbnb market report .

At a glance

Melbourne Airbnb Rules at a Glance

Permit
Depends on council
Taxes on a stay
7.5%
Active Airbnb listings
15,000
Next rule change
May 17, 2028

The rules in brief

The rules a Melbourne host meets first, each linked to the ordinance, statute or official page it comes from. Details and exceptions follow below.

Melbourne Airbnb Rules at a Glance
TopicRule
PermitCity of Melbourne: no registration scheme or night cap8
Building rulesOwners corporations can ban short stays (not in a principal residence)5,7
Listing displayMornington Peninsula: show the registration number on every listing1,9
PlatformsPlatforms register, collect and pay the levy2,25
NeighboursOwners corporation breach notices and VCAT orders for unruly guests6

Your home

Can You Host an Airbnb in Melbourne? It Depends on the Home

Whether you can host in Melbourne turns on whose home it is and whether you live there.

The home you live in, rented whole while you are away or by the room

Allowed

A second home or investment property in the City of Melbourne

Allowed

A home on the Mornington Peninsula

Allowed with conditions

A home in Frankston or Wyndham

Allowed with conditions

A home in the Yarra Valley (Yarra Ranges) or Port Phillip

Allowed

A unit or apartment in an owners corporation building

Allowed with conditions

Permit

Do You Need a Permit for Airbnb in Melbourne?

No. Victoria has no state host licence and the City of Melbourne has no short-stay registration, so an Airbnb host in the inner city needs no permit. Hosts in Mornington Peninsula Shire and Frankston must register each year, Wyndham hosts need a short-stay permit, and hosts who take bookings directly (not through a platform) must register with the State Revenue Office for the Short Stay Levy.1,3,8,9,13,14

Issued by
Platform checks

Fees

Fees
FeeAmount
Mornington Peninsula Shire annual short stay registration (2026-27)A$400 a year in the Shire's adopted 2026-27 budget (A$369.60 in 2025-26)A$400
Frankston City Council annual short stay registrationA$160 a year, non-refundable, as stated on the council's registration pageA$160
Wyndham City Council short stay accommodation permitA$340 as stated on the council's permit page; the page does not say how long the permit lastsA$340

Who qualifies

  • City of Melbourne: no registration, permit or night cap
  • Mornington Peninsula Shire: register the dwelling each year and appoint a designated contact who responds within two hours
  • Frankston City Council: register under the Short Stay Rental Accommodation Local Law 2020 with a designated contact person
  • Wyndham City Council: hold a short stay accommodation permit; no planning or building permit is needed
  • Yarra Ranges Council and City of Port Phillip: no council registration, but complaint-based enforcement applies
  • Apartments: check the owners corporation rules first

How to apply

  1. In the City of Melbourne there is nothing to apply for; check your owners corporation rules if the home is in an apartment building.
  2. In Mornington Peninsula Shire, Frankston or Wyndham, apply online with the council before you accept bookings. Mornington Peninsula requires a designated contact who can respond within two hours, day or night; Frankston also asks for a designated contact person.
  3. If you take bookings directly rather than through a platform, register for the Short Stay Levy with the State Revenue Office before the end of your first liable period.

Permit rules

State registration only if you take direct bookings
City of Melbourne: no registration scheme or night cap
Platforms register, collect and pay the levy
Mornington Peninsula: register every year
Mornington Peninsula: show the registration number on every listing
Frankston: register each year
Wyndham: short stay accommodation permit

Who can host

Who Can Host an Airbnb in Melbourne, and Where

Victoria state law applies on top of Melbourne's own rules: the Victoria short-term rental regulations page covers the state licence and what cities and counties can and can't regulate.

Owners corporations can ban short stays (not in a principal residence)

Operating rules

Operating Rules for Melbourne Short-Term Rentals

Short stay means under 28 consecutive days
Your principal residence is excluded from the levy
Owners corporation breach notices and VCAT orders for unruly guests
Mornington Peninsula: two-hour contact and code of conduct
Mornington Peninsula: registration can be cancelled after three complaints
Yarra Ranges: no registration, but three complaints is an offence
Port Phillip: no permit, complaints handled under local law
Ordinary home rentals are not "prescribed accommodation"

Taxes

How Much Are Airbnb Taxes in Melbourne?

7.5% Short Stay Levy on the total booking fee for stays under 28 nights, collected by Airbnb; there is no tourist or hotel tax in Melbourne, and GST applies only to hosts registered for it.

Median nightly rate, booked nights
US$170
Taxes on that night (7.5%)
US$13
Guest pays, before Airbnb and cleaning fees
US$183
How Much Are Airbnb Taxes in Melbourne?
TaxRateCollected by
Victoria Short Stay Levy 7.5% of the total booking fee for each stay of less than 28 consecutive days; the fee includes the nightly rate, cleaning fees, GST and the levy itself7.5%2,4,25Airbnb
GST (10%), only if the host is registered for GST 10% of the price only if you are registered or required to register for GST (turnover A$75,000 or more) and the property is commercial residential premises10%16,17,18,19Host
Total for most hosts 7.5% · All by Airbnb

At Melbourne's median booked rate of US$170 a night, the taxes collected on a booking come to about US$13 a night.

What the host still handles

Fines

How to Avoid Airbnb Fines in Melbourne

Fines in Melbourne fall on hosting outside the rules above. With the rules followed, none of the fines below apply.

Changes

What's Changed in Melbourne's Airbnb Rules, and What's Next

One change is scheduled after October 20, 2026; the most recent rules are listed first.

  1. May 17, 2028 Upcoming
    Mornington Peninsula local law due to lapse unless renewed
  2. July 2026
    Mornington Peninsula registration fee rises to A$400
  3. January 1, 2025
    Short Stay Levy and owners corporation ban rules start
  4. August 27, 2024
    Short Stay Levy Bill introduced in Parliament
  5. August 29, 2023
    City of Melbourne endorses a short-term rental local law option
  6. February 2019
    Owners corporation powers over unruly short stays
  7. May 17, 2018
    Mornington Peninsula short stay local law begins

Listing data

What Melbourne's Listings Show

AirROI, a short-term-rental data firm, counted 15,000 active Airbnb listings in Melbourne over the 12 months to September 2026. Melbourne has no city-wide registration scheme, so almost none of them display a permit or registration number.

Minimum stay set on Melbourne listings

Share of active listings by the shortest stay they accept

Minimum stay in numbers
Minimum stay set on Melbourne listings
Shortest stay acceptedShare of listings
1 night25%
2 nights44%
3 nights14%
4–6 nights10%
7–29 nights6%
30+ nights<1%

What officials report

4,100
63,000

Earnings

What Could a Melbourne Short-Term Rental Earn?

The rules shape the numbers: taxes of 7.5% that Airbnb adds to guests' bills. For a specific address, the Airbnb profit calculator estimates revenue, occupancy and nightly rate from comparable listings, so you can test the numbers before applying.

Estimate what a Melbourne home could earn

FAQ

Melbourne Airbnb Rules: Frequently Asked Questions

Is Airbnb legal in Melbourne?

Yes. Victoria has no state host licence and the City of Melbourne has no registration or night cap. You pay the 7.5% Short Stay Levy through Airbnb, and some councils in the Melbourne area, such as Mornington Peninsula, Frankston and Wyndham, add their own registration or permit.2,8,9,13,14

Do I need a permit or licence to list on Airbnb in Melbourne?

Not in the City of Melbourne, Port Phillip or Yarra Ranges. Mornington Peninsula Shire and Frankston City Council require yearly registration, and Wyndham City Council requires a short stay accommodation permit. Hosts who take bookings directly also register with the State Revenue Office for the levy.3,8,9,12,13,14,15

Is Airbnb legal in Victoria outside Melbourne?

Yes. Victoria has no state host licence, and the 7.5% Short Stay Levy applies to stays of less than 28 consecutive days anywhere in the state, with your own principal place of residence excluded. Beyond that, each council sets its own rules: Bass Coast Shire, Mornington Peninsula Shire and Frankston City Council require registration, Wyndham City Council requires a permit, and Yarra Ranges has none but makes three good-faith complaints in 12 months an offence. Check your council's website before you list.2,3,9,12,13,14,22

Can I Airbnb my apartment in Melbourne, and how do I find out if my owners corporation has banned it?

Yes, unless your owners corporation has banned short stays. Since 1 January 2025 an owners corporation can ban short stays (bookings under 28 days) by a special resolution backed by 75% of lot owners, except in a lot that is the owner's or occupier's principal place of residence. To find out whether yours has, ask to inspect the owners corporation register, which records each amendment to the rules, or request an owners corporation certificate, which must attach the rules registered with Land Use Victoria. A rule that is not registered there is void and not enforceable.5,23,24

What is Victoria's Short Stay Levy?

A 7.5% levy on the total booking fee for stays of less than 28 consecutive days, in force from 1 January 2025. The fee includes the nightly rate, cleaning fees and GST, and the State Revenue Office's example is a A$75 levy on a A$1,000 booking.2,4

Does Airbnb collect the Short Stay Levy, or do I pay it?

Airbnb collects it from guests on bookings made on or after 1 January 2025 and remits it to the State Revenue Office. Hosts who only take bookings through platforms do not register or lodge returns; hosts who take direct bookings must register and file returns themselves.2,3,25

Does the levy apply if I rent out my own home?

No, not to your principal place of residence, whether you own or rent it, including when you rent rooms in it or let someone stay while you are on holiday. A separate granny flat, a private room in a house that is not your principal residence, and a second home are covered. Tell Airbnb by declaration if your listing is excluded.2,7,25

What are the short stay rules on the Mornington Peninsula?

You must register the dwelling with Mornington Peninsula Shire each year (A$400 in 2026-27), name a contact who can respond within two hours, show the registration number on every listing and follow the Code of Conduct. Three substantiated complaints in 12 months can cancel the registration.1,9,10,11

Do Frankston, Wyndham or Yarra Ranges have their own rules?

Yes. Frankston requires annual registration (A$160 a year) and Wyndham a short stay accommodation permit (A$340). Yarra Ranges does not register short stays but treats three good-faith nuisance complaints in 12 months as an offence, with a A$1,000 infringement.12,13,14

Is there a night cap for Airbnb in Melbourne?

No. Neither Victoria nor the City of Melbourne caps nights. The City consulted in 2023 on a registration fee and a cap on rental days but paused that work when the state levy was announced.8

Do I have to charge GST on Airbnb stays in Melbourne?

Only if you are registered for GST, which is required once your GST turnover reaches A$75,000. The ATO says you do not pay GST on residential rent you earn unless you run commercial residential premises, and that a GST-registered host leasing commercial residential premises is liable for GST on stays under 28 continuous days.16,17,18

How much does an Airbnb make in Melbourne?

The average Melbourne listing earned US$26,200 in the 12 months to September 2026, according to AirROI, averaged across every active listing including those booked for only part of the year. The Melbourne Airbnb market report breaks it down by month, property size and neighborhood.

Method

How These Rules Were Checked

Each rule on this page was checked in October 2026 against the official source cited beside it: the ordinance or statute, the permit office's own pages and the tax authority. Airbnb's help pages are cited on their own only for what Airbnb itself does, such as the taxes it collects and the permit checks it runs, and otherwise only beside an official source; news reports only for when a change was announced. Rules that could not be confirmed on an official page are left out. The Yarra Ranges and Port Phillip council websites, the Frankston and Mornington Peninsula pages and the ATO block automated readers, so those pages were read in a browser or from Internet Archive copies of the same official pages; Frankston's fee is from the live page read on 18 October 2026.

Rules change with council votes, court rulings and new state laws, so the page is rechecked every three months and whenever a scheduled change takes effect. It summarizes the rules for information and is not legal advice; the local authority has the final word on any application.

Listing figures come from AirROI's tracking of 15,000 active Melbourne Airbnb listings over the 12 months to September 2026.

Sources

Sources

Each rule above links to the source it comes from. Official ordinances, statutes and government pages come first, then Airbnb's own help pages.

  1. 1. Short Stay Rental Accommodation Local Law 2018 (as amended by the 2022 amendment local law) · Mornington Peninsula Shire
  2. 2. Understanding the short stay levy · State Revenue Office Victoria
  3. 3. Register for the short stay levy · State Revenue Office Victoria
  4. 4. Calculate the short stay levy · State Revenue Office Victoria
  5. 5. Making rules to ban short stay accommodation (last updated 8 January 2025) · Consumer Affairs Victoria
  6. 6. Short stay accommodation - laws to prevent unruly parties (last updated 4 February 2025) · Consumer Affairs Victoria
  7. 7. More Long-Term Rentals And More Social Homes (media release, 27 August 2024) · Premier of Victoria
  8. 8. Short-Term Accommodation Policy · City of Melbourne (Participate Melbourne)
  9. 9. Short Term Rentals · Mornington Peninsula Shire
  10. 10. Short Stay Rental Accommodation Fact Sheet for Owners (last updated 30 January 2025) · Mornington Peninsula Shire
  11. 11. Adopted Budget 2026-27 (schedule of fees and charges) · Mornington Peninsula Shire
  12. 12. Short stay accommodation · Yarra Ranges Council
  13. 13. Short stay rental accommodation registration · Frankston City Council
  14. 14. Get a permit for short stay accommodation · Wyndham City Council
  15. 15. Short-stay accommodation · City of Port Phillip
  16. 16. Renting out all or part of your home (last updated 20 August 2025) · Australian Taxation Office
  17. 17. Commercial residential premises and GST · Australian Taxation Office
  18. 18. Registering for GST (last updated 14 September 2026) · Australian Taxation Office
  19. 19. How GST works (last updated 14 September 2026) · Australian Taxation Office
  20. 20. Notice under section 6 of the Monetary Units Act 2004, fixing the value of a fee unit and a penalty unit (published 5 May 2026) · Department of Treasury and Finance, Victoria
  21. 21. Sharing economy accommodation data-matching program overview (last updated 8 July 2024) · Australian Taxation Office
  22. 22. Short Stay Rental Accommodation (SSRA) · Bass Coast Shire Council
  23. 23. How to make owners corporation rules (last updated 9 April 2026) · Consumer Affairs Victoria
  24. 24. Records - owners corporations (last updated 9 April 2026) · Consumer Affairs Victoria
  25. 25. Tax collection and remittance by Airbnb in Australia · Airbnb Help Centre