The Short Stay Levy Act 2024 is set to take effect from 1 January 2025, following its Royal Assent on 29 October 2024. This new legislation introduces a 7.5% levy on short-term accommodation rentals of less than 28 consecutive days, impacting property owners, tenants, and booking platforms alike. Here’s what you need to know to stay compliant.
Key Highlights of the Short Stay Levy:
- Effective Date: The levy applies to bookings made and completed on or after 1 January 2025.
- Exemptions:
- Properties used as a Principal Place of Residence (PPR) are exempt, whether owned or rented.
- However, the levy applies to short stays in secondary residences or dwellings on the same property as your PPR, such as granny flats, caravans, or tiny homes.
- Levy Rate: A flat 7.5% of the total booking fee, which includes cleaning fees, GST (if applicable), and credit card fees.
- Who Pays the Levy?:
- For bookings made via a booking platform, the platform is responsible for paying the levy.
- For direct bookings (without a platform), the property owner or tenant must pay the levy.
- Exclusions: Bookings for 28 consecutive days or more are not subject to the levy.
Registration and Reporting Obligations:
- Property owners, tenants, and booking platforms accepting short stay bookings must register with the State Revenue Office (SRO) for reporting and remittance of the levy.
- Reporting and payment may be required on a quarterly or annual basis, depending on individual circumstances.
- If you use a booking platform but believe your property is exempt, you must submit a declaration to the SRO. An online declaration form is expected to be available on the SRO website by 1 January 2025.
Transitional Arrangements:
The levy will only apply to bookings made and completed on or after 1 January 2025, ensuring a smooth transition for property owners and booking platforms.
Stay Compliant and Informed
The introduction of the Short Stay Levy Act 2024 marks a significant change for short-term rental operators. To ensure compliance and avoid penalties, it’s crucial to understand your obligations under this new law.
For tailored advice or assistance with navigating these changes, contact eConvey today. Call us now on 03 5976 2700 to discuss how the Short Stay Levy may impact you and your property.