Macedon Ranges accommodation providers are nervously awaiting the outcome of major changes to their industry and expect tourism to also take a hit.
Short stay rentals will become more costly from January next year following the Short Stay Levy Bill introduced to Parliament last week.
The legislation introduces a 7.5 per cent levy on short stay accommodation bookings (such as Airbnb and Stayz), with the revenue to support social and affordable housing.
Minister for Housing Harriet Shing said the policy would encourage change to how housing was made available.
“The demand for housing has never been greater around Australia, and the Victorian short stay levy will support the delivery of more social housing and encourage more people to use their properties for permanent rental accommodation across the state,” she said.
Expected to raise about $60 million a year, the revenue will go to Homes Victoria to support the building and maintenance of social and affordable housing – with 25 per cent of funds to be invested in regional Victoria.
In Victoria, there are about 63,000 short stay accommodation places – with nearly half of these in regional Victoria. Almost 50,000 of those places are entire homes which are not available for long-term rental, according to the Victorian Government.
INDUSTRY TO SUFFER?
Macedon Ranges Accommodation Association members fear the levy could drive people out of the industry and impact tourism, one of the region’s strongest industries.
“It will definitely drive some of the fringe providers out of the industry. We would expect a move away from the large providers in the industry such as Airbnb,” MRAA president Mariel Sloan said.
“We would expect pushback from our customer base in an industry that is already struggling to attract bookings because of current economic climate.
“As the only state in the nation levying this tax, we expect some loss of business interstate.”
MRAA represents the needs of regional accommodation providers of all kinds across the shire where it estimates there are more than 150 short stay operators.
Ms Sloan said the bill was “a blunt instrument that lacks an understanding of the industry outside of Melbourne and the Mornington Peninsula”.
“It does not address some of the fundamental issues facing short stay accommodation (STA) in the Macedon Ranges,” she said.
“The Macedon Ranges STA providers are predominantly made up of accommodation providers who are not permitted by local government bylaw to offer long-term accommodation.”
Ms Sloan said STA operators were still trying to understand how the levy would apply and most had already begun taking bookings for next year.
DETAILS SOON
A state government spokesperson told the Express the State Revenue Office would provide detailed guidance materials soon after the passage of legislation.
“We know our tourism operators are the lifeblood of so many communities, that’s why we’re investing in experiences, attractions and partnerships that continue to draw people to townships across our region,” the spokesperson said.
“We have consulted extensively with a range of stakeholders over the last 12 months, including local councils, the short stay industry and the tourism sector to get the balance right for communities across Victoria.”
The levy will not apply to a homeowner leasing out all or part of their principal place of residence for a short stay, nor to a temporary stay when a homeowner goes on holiday.
Commercial accommodation is exempt and the levy will only apply to stays less than 28 days.
Transitional arrangements will be in place, and the levy will not apply to bookings made before January 2025.
While the changes have created some uncertainty for accommodation operators, and tourism more broadly, it aims to direct funding to social and affordable housing.
RANGES’ HOUSING GRIEF
Victoria’s housing crisis is undisputed and Macedon Ranges is not immune to its challenges.
Sunbury and Cobaw Community Health offers a housing support service and and is an access point for homelessness services in the shire.
Cobaw’s Kate Weston, housing support team leader, said the organisation had worked with more than 220 adults and young people in the past year who were seeking housing assistance.
“This could be because they are homeless, or at risk of becoming homeless,” she said.
“It is getting harder for people as waitlists for public housing are longer. Private rentals are now unaffordable in our region. “There are less options for crisis accommodation.”
The profile of people seeking assistance is changing too.
“More families and older people, especially single women, are presenting as being at risk from becoming homeless,” Ms Weston said.
“We have had an increase of women and children fleeing domestic violence. We are seeing more people being impacted by the cost of living crisis, with working families needing support.
“More investment properties are being sold as an impact of higher mortgage rates and land taxes, which means tenants are being given notices to vacate or rents are increased to unaffordable levels.”
RENTING STRUGGLE
Ms Weston said securing a rental property was becoming increasingly more difficult for people.
“Rental prices have gone up significantly in the last couple of years and many of our towns have rental affordability index scores lower than the regional average.
“There are only a small number of public housing properties in the Macedon Ranges, all with long-term tenants. There has been very little change in the number of public housing homes over the past few years with limited vacancies each year.
“The Macedon Ranges has more than 1100 people on the Victorian Housing Register, with around 680 being priority rated.”
How much each regional area will benefit from the levy is unknown at this stage. The levy will apply from January 1 next year.
