Act Now! Victoria’s Short-Stay Levy could leave vulnerable populations in the lurch

The Victorian Government’s recently announced 7.5% short-stay levy, set to be introduced on January 1, 2025, is already facing strong backlash from various quarters of the accommodation industry.

While the levy aims to address housing affordability by imposing a tax on properties rented through platforms like Airbnb and Stayz, concerns have been raised about its unintended consequences, particularly for people with disabilities and other marginalised communities.

Impact on Accessible Accommodation

Kerry Williams, Founder of Accessible Accommodation, has been vocal about the detrimental effects this levy could have on individuals with disabilities. According to Williams, people with disabilities overwhelmingly prefer self-contained accommodations over traditional hotels, with 80 percent of this community favouring options that offer kitchens and multiple bedrooms. These accommodations allow for carers to accompany them and provide a more cost-effective way to manage meals, avoiding the high costs associated with dining out.

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For people with high physical needs, the situation is even more critical. Williams highlights that only a few properties in Victoria cater to these needs, with just nine short-stay accommodations in the state meeting Tier 3 requirements. Of these, eight are short-stay accommodations. The introduction of the levy, along with other financial burdens, could force these ‘mum-and-dad’ short-stay operators to sell their properties, leaving just one option for individuals with high needs in Victoria.

“If these short-stay properties catering to high needs leave the market, our followers with high physical needs will be forced to stay in lower-tiered properties. This means the further cost of hiring equipment, adding hundreds of more dollars to their budget,” Williams warned.

“This is an awful decision and will significantly impact people living with disabilities, a marginalised community. Adding a 7.5% tax will flow onto higher pricing for marginalised people living with a disability.”

Broader Implications for Marginalised Communities

The potential loss of accessible short-stay options is not the only concern. Williams also points out that the levy could have serious implications for other vulnerable groups. In regional areas, where short-stay self-contained accommodations are already limited, the reduction in available options could impact women experiencing domestic violence who rely on these accommodations as safe havens.

In metropolitan areas, the availability of self-contained short-stay accommodations is crucial for people with disabilities who need to stay near hospitals for outpatient visits and rehabilitation programs. The reduction in accessible accommodations due to the levy could further marginalise these individuals, making it more difficult for them to access essential medical care.

Calls for Exemptions and Alternative Solutions

The concerns raised by Williams have been echoed by industry leaders like Felicia Mariani, CEO of the Victoria Tourism Industry Council (VTIC). Mariani has voiced her support for lobbying efforts to secure exemptions from the levy for short-stay properties that cater to people with disabilities. “There are other ways to reduce the long-term rental housing shortage,” Mariani stated, emphasising the need for policies that do not disproportionately impact the tourism industry broadly and vulnerable communities in particular.  

Williams’ campaign to advocate for exceptions is gaining momentum, with the hope that the government will reconsider the levy or at least provide exemptions for properties that serve critical needs.

Looking Ahead

As the levy is set to take effect in 2025, the accommodation industry and advocacy groups are closely watching how these changes will unfold. While the government aims to tackle housing affordability, the voices of those advocating for people with disabilities and other marginalised communities are growing louder, calling for a more nuanced approach that considers the diverse needs of all Victorians.

The Victorian Government’s decision has sparked a crucial debate about balancing housing policies with the needs of vulnerable populations. As discussions continue, it remains to be seen whether exemptions or adjustments will be made to ensure that those most in need are not left behind.

For the latest developments and expert insights on how this levy will affect accessibility and the accommodation industry, stay informed with AccomNews.

Mandy Clarke

Mandy has almost two decades of accommodation and tourism industry writing experience and is Editor of AccomNews & Resort News, Publisher of SchoolNews & Director of Multimedia Pty Ltd. She is a retired registered nurse with a 25-year NHS career that followed a few unforgettable years in hotel housekeeping.