Short stay levy in Victoria (and the NSW short-term rental rules)

What the Victorian levy covers

The Act defines a short stay as occupation of premises “for a continuous period of less than 28 days”. The State Revenue Office (SRO) counts the 28 days without the checkout day. Liability arises on the date the stay is completed, that is the checkout date in the booking, even if the guest leaves early. A booking that is cancelled with the full fee waived, credited or refunded is not a completed stay.

The SRO lists these properties as covered:

• entire houses or apartments;
• private rooms in a house that is not the owner’s or renter’s principal place of residence;
• granny flats or other separate residences on the same land, if they can be occupied separately;
• caravans and other mobile premises, but only if the stay is at one site for the whole booking.

Bookings made before 1 January 2025 are outside the levy, even for stays completed after that date (section 23 of the Act).

Exclusions and exemptions

The levy does not apply to:

• a stay in the principal place of residence of the owner or renter. The Act requires regard to every place where the person lives, in Victoria or elsewhere, and treats a rental agreement made to avoid the levy as not creating a principal place of residence;
• premises that cannot be occupied separately from the main residence, for example because they share an entrance, kitchen or bathroom;
• commercial residential accommodation such as hotels, motels and hostels;
• houseboats the guest can move during the stay.

Owners or renters who fall under an exclusion must tell their booking platforms, using the SRO’s declaration form if the platform does not provide one. The SRO also lists exemptions that need no application or declaration: staff housing within a broader facility (schools, healthcare facilities, farms), rooming houses, retirement villages, residential care facilities, supported residential services, student accommodation linked to an educational institution, and non-profit crisis accommodation funded by Victoria’s homelessness support.

Who pays

Platforms register with the SRO and lodge for all their bookings; they do not register individual properties. An owner or renter whose bookings all go through platforms does not need to register. Where a manager or licensee with exclusive occupation takes direct bookings, section 15 of the Act requires that person to pass the levy (plus any GST on it) to the owner or renter who is liable. Platforms and hosts may itemise a levy contribution in the guest’s invoice, but the levy is still worked out on the full amount, so the sum paid to the SRO is the same either way.

What counts in the booking fee

The SRO includes in the total booking fee: the nightly rate, cleaning fees, GST, late checkout fees, and mandatory extras that come with the stay (such as a bike or boat the guest cannot remove for a lower rate). A processing fee charged by the host or agent is included.

It excludes: fees for using a particular payment method (such as credit card surcharges), optional add-ons the guest can decline (such as airport transport), damage charges, amounts waived, refunded or given as a cancellation credit, free stays, and, for package deals, everything but the accommodation part. A fee quoted in a foreign currency is converted at the Reserve Bank of Australia rate on the day of the booking.

The levy is rounded down to the nearest 5 cents. The SRO’s example: a $1,000 booking fee gives a $75 levy; a levy that works out at $220.39 is paid as $220.35.

Registering, lodging and paying (direct bookings)

Owners or renters who accept direct bookings must register before lodging their first return. How often they lodge depends on total booking fees in the calendar year:

An annual lodger who passes $75,000 during the year switches to quarterly lodgement for the rest of that year. The levy is a taxation law under the Taxation Administration Act 1997, so interest and penalty tax under Part 5 of that Act can apply to unpaid amounts. The SRO states that the revenue funds social and affordable housing, with 25% invested in regional Victoria.

Apartments and owners corporations

The same Act amended the Owners Corporations Act 2006: it added to Schedule 1 of that Act a rule on the “prohibition on use of lots as short-stay accommodation”, which does not prevent an owner, or the owner’s tenant, from offering a lot they occupy as their principal place of residence. Before buying an apartment to let as a short stay, check the owners corporation rules in the vendor’s disclosure documents: see strata title and body corporate and vendor disclosure by state.

New South Wales: register and day limits

NSW does not charge a short stay levy. Its rules, from the NSW Planning page as read on 21 October 2026:

• every short-term rental property must be listed on the government STRA Register; a new registration costs $65 and an annual renewal $25, both non-refundable;
• before registering, the host confirms the dwelling meets fire safety requirements (an evacuation plan and interconnected smoke alarms) and agrees to follow the mandatory Code of Conduct, administered by the Commissioner for Fair Trading since 18 December 2020;
• non-hosted stays are capped at 180 days a year in Greater Sydney (the Eastern Harbour City, Central River City and Western Parkland City), the Ballina area and certain land in the Clarence Valley and Muswellbrook areas, counted over each 12-month period from the first registration date; bookings of 21 consecutive days or more do not count toward the cap;
• in most of Byron Shire, the cap for non-hosted stays has been 60 days since 23 September 2024.

The page says the government’s review of the framework is still under way. Payotte did not read the short-term rental rules of the other states and territories for this guide.

Tax and other costs

The levy is a state charge on bookings; it is separate from income tax on the rent and from land tax. A Victorian property that is not your home can also attract land tax, and one left vacant may fall under Victoria’s vacant residential land tax. For deductions on a rented property, see rental property deductions; for the effect of renting out part of your home on capital gains, see capital gains tax and the main residence. Payotte could not open the ATO pages on short-term rental arrangements on 21 October 2026 (access refused), so this guide does not summarise them.

Which professional to consult

A real estate agent who manages holiday lets can tell you whether a platform or the owner will be liable for each booking (real estate agents). For an apartment, a conveyancer can read the owners corporation rules before you sign (conveyancers). For lodging, the SRO itself answers questions on registration and returns.