Airbnb petitions Victorian government to exclude single rooms and cheap stays from new levy
Airbnb will urge the Victorian government to exclude private room bookings and other “budget accommodation” from its recently-announced 7.5% levy on short-stays, and has cautioned other states from immediately following suit.
At a media event on Wednesday morning, the company’s head of public policy in Australia and New Zealand, Michael Crosby, said he was “disappointed” the levy was limited to short-stay platforms, having previously pushed for a 3-5% tax on all accommodation providers.
The levy, set to come into effect in 2025, will raise about $70m annually to fund social and affordable housing.
“It is a very worthy aim that the government has earmarked this revenue for new homes – Airbnb definitely supports anything that is going to lift the overall supply of housing,” Crosby said.
Related: Australian-first 7.5% levy to hit all Airbnb and short-stay accomodation in Victoria
“But we have said that the levy would raise a lot more and cost consumers less if it was completely accommodation agnostic and apply to any form of accommodation.”
Crosby said Airbnb will be pushing the government to lower the levy for low-cost accommodation during its next stage of consultation, which will include setting up an industry working group.
Airbnb did not provide figures on how many private rooms are listed in Victoria, but said globally they make up more than 15% of its 6.6 million listings.
“The 7.5% levy will have a disproportionate impact on budget accommodation,” Crosby said, noting that the average price of a private room on Airbnb is about $104 a night.
“We want that … option to be there for budget-conscious travellers or people who need affordable accommodation options.
“One thing we wouldn’t mind exploring with the government is if there could be a tiered structure, maybe a threshold where it lifts to a higher rate.”
The Victorian government has been approached for comment.
Deborah Di Natale from the Council to Homeless Persons said Airbnbs were only ever a short-term housing option and welcomed the government’s decision to enforce the “moderate” levy on the platform.
“Airbnbs have meant that there are less long-term rentals on the market and what we need is as many rentals as we can get across the state,” she said.
“Any new policy that the government can implement to provide a funding pipeline to build more stock is welcome during a housing crisis.”
At a seperate press conference on Wednesday, the minister for tourism, Steve Dimopoulos, said the government would not reconsider the exemption for hotels.
“Airbnb provides a valuable service to many communities across Victoria but it also does take away housing stock,” he said.
Related: NSW considering following Victoria’s lead by taxing Airbnb revenue
“The purpose of that levy on Airbnb was to shift a little bit of the market back to what people need, which is a home to live in. It has no relevance to regulated accommodation – not to serviced apartments, not to hotels. They provide a completely difference service.”
The day after Victoria announced the levy, the NSW premier, Chris Minns, and his treasurer Daniel Mookhey said they were open to imposing a similar measure to encourage owners to put their properties back on the long-term market.
Mookhey ordered Treasury to study Victoria’s 7.5% tax and examine the impact of similar measures overseas.
Crosby said he was aware of other states also monitoring Victoria’s progress.
“Whether or not there are any firm proposals on the table from other states and at the moment, I don’t think I’ve seen any, but they are super interested in what Victoria is doing,” he said.
“But we want to make sure … that if there is that negative impact as a result of the levy that other state governments are aware of that as well.”
