Victoria Short-Term Rental Laws & Hotel Tax (2026)

State licence required

No

Latest rule change

July 2026

The laws in brief

Issued by

State Revenue Office Victoria

Valid for

Levy registration is made once, before the first return. Returns fall due 30 days after each quarter for A$75,000 or more in booking fees a year, or by 30 January for less.

Platform checks

Airbnb collects the levy on bookings made through its platform, and processes a declaration that a listing is excluded within 7 days of submission.

Who qualifies

• Registration for the levy is not needed if every booking is made through a platform.
• A short stay in the principal place of residence of the owner or renter is excluded from the levy.
• Rooms that cannot be occupied separately from the main residence, for example sharing an entrance, kitchen or bathroom, are excluded from the levy.

How to apply

1. 1 Check whether the levy applies: a stay of less than 28 consecutive days in a property that is not your principal place of residence.
2. 2 If you take any bookings without a platform, register with the State Revenue Office as an owner or tenant before the end of the first period in which you owe the levy, with the date your first booking ended after 1 January 2025 and your 2024 short stay booking fees.
3. 3 Lodge returns in the State Revenue Office online portal, quarterly if your booking fees are A$75,000 or more a year and annually by 30 January if less, and pay by credit card or one-off direct debit.
4. 4 If your listing on Airbnb is excluded from the levy, such as a principal residence, send Airbnb its declaration form.

Permit rules

No state permit; levy registration only for direct bookings

Victoria has no state permit or licence for short-stay hosts. The only state registration is with the State Revenue Office for the short stay levy, and it applies to owners and tenants who take bookings without a platform; hosts who take every booking through Airbnb do not register.^1,3 In force since January 1, 2025

Airbnb collects and remits the levy

Platforms such as Airbnb, Stayz and Booking.com register with the State Revenue Office, collect the levy on every booking made through them, and lodge and pay it. Airbnb has collected the levy from guests on Victorian bookings made on or after 1 January 2025.^1,19 Applies to: bookings through Airbnb · In force since January 1, 2025

Direct bookings: register, lodge and pay yourself

Owners and tenants who accept bookings without a platform register with the State Revenue Office before lodging their first return. Hosts with booking fees of A$75,000 or more a year lodge and pay quarterly, 30 days after each quarter ends; hosts below that lodge annually by 30 January.^1,3 Applies to: hosts taking direct bookings · In force since January 1, 2025

Excluded listings: declare to Airbnb

A host whose listing is not short stay accommodation, such as a principal residence, declares this to Airbnb on its form instead of the State Revenue Office's version, and Airbnb exempts the listing from the levy within 7 days of submission.¹⁹ Applies to: hosts with excluded listings · In force since January 1, 2025

Bass Coast Shire: annual council registration

Hosts in Bass Coast Shire, which includes Phillip Island, register each rental with the council under a local law that took effect on 11 September 2023. The 2026/27 fee is A$600 for 1 to 4 bedrooms and A$900 for 5 or more, and registration lasts 12 months.¹⁴ Applies to: hosts in Bass Coast Shire · In force since September 11, 2023

Your own home is excluded from the levy

A short stay in the principal place of residence of the owner or renter is not subject to the levy, whether the guest takes a room or the whole home while the host is away. A private room in a house that is not the host's principal residence is covered.^1,10 Applies to: owner-occupiers and renters · In force since January 1, 2025

Apartment buildings can ban short stays

Since 1 January 2025 an owners corporation can ban short stay accommodation in its building by special resolution, which needs the support of 75% of lot owners.⁷ Applies to: apartment lots in owners corporations · In force since January 1, 2025

A ban cannot reach your principal residence

An owners corporation rule cannot apply to a lot that is the lot owner's or occupier's principal place of residence, so someone who lives in their apartment can still rent out a room or the whole unit while they are away.⁷ Applies to: apartment lots in owners corporations · In force since January 1, 2025

Councils can opt in to a short-stay permit

The Victorian Government said in September 2024 that planning-system changes would let councils, on an opt-in basis, require a permit for a property to be used for short stays and attach conditions to it, once a planning scheme amendment is approved.^10,11 Applies to: local councils · In force since September 11, 2024

City of Melbourne: registration and night cap on hold

The City of Melbourne consulted in September 2023 on a registration fee and a cap on rental days, then paused consideration of those options pending the state levy.¹⁶ Applies to: hosts in the City of Melbourne · In force since September 7, 2023

Renters need the rental provider's written permission to sub-let

A renter who sub-lets part or all of a rented home must have the rental provider's written permission. A rental provider who finds a sub-let without permission can end the rental agreement.⁹ Applies to: renters

1. 1. Melbourne

   City of Melbourne

   Melbourne hosts follow the Victorian rules: the 7.5% short stay levy that Airbnb collects, and any owners corporation ban in apartment buildings. The City of Melbourne paused its proposed local law with an annual registration fee and a cap on rental days, so no council registration or night cap is in force.^1,7,16

   • Short stay levy: 7.5% of the total booking fee on stays under 28 consecutive days, collected by Airbnb
   • A stay in the owner's or renter's principal place of residence is excluded from the levy
   • Owners corporations can ban short stays by a 75% special resolution, except in principal residences
   • Council policy for a registration fee (A$350 considered) and a 180-day cap is paused

2. 2. Cowes

   Bass Coast Shire

   Cowes and Phillip Island sit in Bass Coast Shire, which has required annual registration of short stay rentals since 11 September 2023. The 2026/27 fee is A$600 for 1 to 4 bedrooms and A$900 for 5 or more, and owners must name a contact person who responds within two hours.¹⁴

   • Council registration: A$600 (1 to 4 bedrooms) or A$900 (5 or more bedrooms) for 2026/27, valid 12 months
   • Accepting a booking for an unregistered rental is an offence
   • Designated contact person must respond within two hours, day or night
   • Registration can be cancelled after three substantiated complaints in 12 months

3. 3. Bright

   Alpine Shire

   Alpine Shire Council, which covers Bright, considered a short stay rental accommodation local law and decided on 30 July 2024 to keep using existing legislation to address amenity concerns. Bright hosts follow the Victorian rules: the 7.5% levy collected by Airbnb and any owners corporation ban.^1,15

   • No council short-stay registration or local law after the 30 July 2024 decision
   • Council estimated about 900 short stay rentals in the shire
   • State short stay levy: 7.5%, collected by Airbnb on stays under 28 consecutive days

What the host still handles

• The short stay levy with the State Revenue Office, only for bookings taken without a platform such as Airbnb.
• GST with the Australian Taxation Office once GST turnover reaches A$75,000.
• Council registration where a local law applies, such as Bass Coast Shire's short stay rental accommodation registration.^{1,2,11,17,18,19}

7.5% short stay levy

The short stay levy is 7.5% of the total booking fee for each short stay. Airbnb charges it to the guest and pays it to the State Revenue Office.^1,19 Applies to: stays under 28 consecutive days · In force since January 1, 2025

The levy covers stays under 28 consecutive days

A short stay is a stay of less than 28 consecutive days in the same property, not counting the checkout day. Stays of 28 days or more are outside the levy.¹ In force since January 1, 2025

Granny flats and tiny homes are covered

A granny flat or other separate residence, including a tiny home or caravan, is covered by the levy even when it sits on the same land as the host's main residence, if it can be occupied separately.¹ Applies to: separate dwellings on a host's land · In force since January 1, 2025

What the 7.5% is charged on

The levy applies to the total booking fee, which includes the nightly rate, cleaning fees, GST and any late checkout fee, and where the invoice is itemised the sum includes any amount attributed to the levy itself. Credit card and payment processing charges and charges for damage are not part of the fee.^1,2 In force since January 1, 2025

Unpaid levy is investigated and recovered with penalties

A platform, owner or tenant that does not register, lodge and pay on time can be investigated by the State Revenue Office, which recovers unpaid levy plus penalties.^4,11 Applies to: platforms, owners and tenants · In force since January 1, 2025

Three breach notices in 24 months can stop short-stay letting

An owners corporation can issue breach notices for noise, damage, safety hazards or obstruction by guests. If an apartment receives three breach notices for separate events in 24 months, VCAT can restrict it from being let for short stays for a period of time.⁸ Applies to: apartment lots · In force since February 2019

VCAT fines and compensation in apartment buildings

VCAT can fine up to A$1,100 for breaches of the Owners Corporations Act and award up to A$2,000 compensation to affected residents for loss of amenity.⁸ Applies to: apartment lots · In force since February 2019

Owners and guests are both liable

Owners and their guests are jointly and individually liable for compensation, fines and awards for damage to common property in an apartment building.⁸ Applies to: apartment lots · In force since February 2019

Councils keep their own power to charge fees

The Victorian Government told Parliament that no change would be made to councils' ability to raise fees for short stays, which is why a council such as Bass Coast can run its own registration and fee alongside the state levy.¹¹ Applies to: local councils · In force since September 11, 2024

Domestic-scale rentals do not need council health registration

Councils register rooming houses, hotels and motels as prescribed accommodation, but domestic-scale rentals such as an Airbnb home do not need that registration if the accommodation is self-contained, has no more than 9 bedrooms and takes no more than 12 people.^12,13

Bass Coast Shire: contact person within two hours

Bass Coast owners name a Designated Contact Person who can respond to neighbour complaints within two hours, day or night, and give their details in writing to adjoining neighbours.¹⁴ Applies to: hosts in Bass Coast Shire · In force since September 11, 2023

Alpine Shire: no short-stay local law

Alpine Shire Council, which covers Bright, decided on 30 July 2024 to keep using existing legislation to deal with amenity complaints about short stays instead of adopting a short-stay local law.¹⁵ Applies to: hosts in Alpine Shire · In force since July 30, 2024

GST applies to commercial short-term accommodation

Hosts must register for GST once GST turnover reaches A$75,000. GST of 10% applies to short-term accommodation, under 28 continuous days, in commercial residential premises.^17,18 Applies to: GST-registered hosts

• Apartment buildings: VCAT can fine up to A$1,100 for breaches of the Owners Corporations Act by an owner or guest, award up to A$2,000 compensation for loss of amenity, and restrict an apartment from short-stay letting after three breach notices in 24 months.⁸
• Short stay levy: unpaid levy is recovered with penalty tax, which starts at 25% of the unpaid amount and rises to 75% for intentional disregard of the law, plus interest at 12.43% a year for 1 July 2026 to 30 June 2027.^4,5,6,11
• Apartment buildings: three breach notices for separate events within 24 months allow VCAT to stop that apartment being let for short stays for a period of time.⁸
• Bass Coast Shire: accepting a booking for an unregistered short stay rental is an offence, and registration can be cancelled after three substantiated complaints in a rolling 12 months.¹⁴

1. July 2026
   Bass Coast Shire registration fee for 2026/27

   The council's 2026/27 registration fee is A$600 for 1 to 4 bedrooms and A$900 for 5 or more bedrooms.¹⁴

2. January 1, 2025
   Owners corporations can ban short stays

   Owners corporations can make rules banning short stay accommodation in their developments by special resolution, except in a lot that is a principal place of residence.⁷

3. January 1, 2025
   Short stay levy starts

   The 7.5% levy applies to short stays under 28 consecutive days in Victorian properties, and Airbnb collects it from guests on bookings made on or after 1 January 2025.^1,19

4. September 11, 2024
   Opt-in council planning powers for short stays announced

   The Victorian Government told Parliament it was making non-legislative planning-system changes to let councils require a permit for short-stay use and attach conditions, on an opt-in basis, with no change to councils' ability to raise fees.¹¹

5. August 27, 2024
   Victoria announces the 7.5% short stay levy

   The Premier announced the final policy: a 7.5% levy on short stay bookings from 1 January 2025, with the principal place of residence excluded and owners corporations able to ban short stays by a 75% vote.¹⁰

6. July 30, 2024 Lapsed
   Alpine Shire drops its short-stay local law

   Alpine Shire Council agreed to continue using existing legislation to address amenity concerns instead of adopting a short stay rental accommodation local law.¹⁵

7. September 11, 2023
   Bass Coast Shire short stay rental local law takes effect

   Bass Coast Shire owners must register short stay rental accommodation with the council and name a designated contact person.¹⁴

8. September 7, 2023 Not in force
   City of Melbourne consults on a registration fee and night cap

   The council consulted from 7 to 29 September 2023 on a short-term rental local law with an annual registration fee and a cap on the number of days a property can be rented, then paused consideration after the Victorian Government announced a state levy.¹⁶

Estimate what a home could earn

1. 1. Understanding the short stay levy · State Revenue Office Victoria
2. 2. How to calculate the short stay levy · State Revenue Office Victoria
3. 3. Register for the short stay levy · State Revenue Office Victoria
4. 4. Register now for the short stay levy · State Revenue Office Victoria
5. 5. Penalty tax and interest · State Revenue Office Victoria
6. 6. Interest and penalty tax rates · State Revenue Office Victoria
7. 7. Making rules to ban short stay accommodation · Consumer Affairs Victoria
8. 8. Short stay accommodation - laws to prevent unruly parties · Consumer Affairs Victoria
9. 9. Sub-letting · Consumer Affairs Victoria
10. 10. More Long-Term Rentals And More Social Homes · Premier of Victoria
11. 11. Short Stay Levy Bill 2024, second reading debate, 11 September 2024 · Parliament of Victoria (Hansard)
12. 12. Short-stay accommodation · City of Port Phillip
13. 13. Register a prescribed accommodation business · City of Port Phillip
14. 14. Short Stay Rental Accommodation (SSRA) · Bass Coast Shire Council
15. 15. Draft Short Stay Rental Accommodation Local Law · Alpine Shire Council
16. 16. Short-Term Accommodation Policy · City of Melbourne
17. 17. Register for goods and services tax (GST) · business.gov.au, Australian Government
18. 18. Commercial residential premises and GST · Australian Taxation Office
19. 19. Tax collection and remittance by Airbnb in Australia · Airbnb Help Center