Strengthening the future: Accommodation Australia’s 2025 election priorities

With the 2025 Federal Election fast approaching, Accommodation Australia is calling on all political parties to back the policies that will future-proof the accommodation industry and support its ongoing recovery.

In its comprehensive pre-budget submission, the industry body has mapped out 24 key recommendations across six critical areas: skills, migration, tourism, short term rental reforms, energy, and tax and small business support measures. These priorities are designed to tackle workforce shortages, ease cost pressures, and reignite tourism growth, ensuring a thriving and competitive industry.

Read the latest AccomNews print edition HERE

The accommodation sector is a major contributor to the Australian economy, employing almost 110,000 people in primary roles and an additional 50,000 in supplementary positions. Over 40 percent of these jobs are in regional Australia, and nearly 60 percent of them are held by women.

In 2023-24, the accommodation industry generated over $21.2 billion in tourism-related revenue and, together with the wider Accommodation and Food Services sector, contributed more than $60 billion in value to the economy. However, the industry is still recovering from the devastating impacts of the COVID-19 pandemic, with international holiday visitor nights still down by more than 11 percent compared to pre-pandemic levels and overall international visitor arrivals lagging by 12 percent.

Despite the accommodation sector making strides toward recovery, Accommodation Australia CEO James Goodwin emphasised the urgency of these reforms.

Speaking with AccomNews recently, he highlighted ongoing uncertainty and called on the next government to prioritise the needs of accommodation providers and their workforce.

Accommodation Australia’s key election priorities:

1. Boosting tourism demand and international competitiveness

• Increase Tourism Australia’s funding to $200 million per year, plus an additional $20 million specifically allocated for tourism events to maintain and enhance Australia’s global appeal.

• Expand aviation capacity and competition by encouraging more international and domestic flights, ensuring better connectivity to key tourism markets.

• Freeze the Passenger Movement Charge (PMC) at current rates and reinvest more of its proceeds into improving the traveller experience at Australian borders, making entry into the country smoother and more efficient.

2. Addressing workforce and skills shortages

• Prioritise training funding for the accommodation and food service industry, which employs over one million Australians, to improve productivity and upskill the workforce.

• Enhance employer incentives by increasing financial support for food trades apprentices and reinstating incentives for hospitality traineeships.

• Develop clear career pathways within the industry, making it more attractive for school leavers and young professionals.

3. Reforming migration to support industry growth

• Ensure at least 47,000 employer-sponsored places per year in the permanent migration program, allowing businesses to fill skill shortages with qualified international workers.

• Restore restaurant managers to the Core Skills Occupation List and ensure that key hospitality roles are eligible for skilled migration sponsorship.

• Expand regional employer sponsorship opportunities for all skilled occupations, allowing more businesses to access talent through both temporary and permanent migration pathways.

• Reduce the Skilling Australians Fund levy by 50 percent to ease the financial burden on businesses and improve visa processing times.

• Retain and expand working holiday visa access, ensuring continued eligibility for second and third-year visas for those working in regional Australia, while broadening the classification of regional areas.

4. Regulating Short Term Rental Accommodation (STRA) for housing stability

• Oversee a national regulatory framework for short-term rentals to ensure consistency across states and territories.

• Introduce a mandatory registration system for STRA operators, improving transparency and enforcement.

• Cap short-term rental stays at 90 days per year with flexibility for local governments to impose lower limits where needed.

• Strengthen enforcement mechanisms to ensure compliance and protect long-term rental markets, particularly in high-demand areas. .

5. Supporting small businesses with energy and tax relief

• Introduce targeted energy cost relief measures, such as subsidies and incentives, to help businesses manage rising electricity and gas expenses.

• Maintain industry access to gas as an energy source, ensuring businesses can continue to use cost-effective and reliable power options.

• Remove fringe benefits tax (FBT) on legitimate business entertainment expenses (excluding alcohol), making it more affordable for businesses to engage in client and employee hospitality.

• Increase the accelerated depreciation rate for accommodation properties, improving cash flow for businesses and enabling greater investment in hotel refurbishments and upgrades.

These bold and necessary reforms are expected to set the accommodation sector on a path to long-term stability, growth, and global competitiveness. Accommodation Australia urges all political parties to commit to these policies and help build a more resilient and prosperous industry.

For further details on these priorities, visit Accommodation Australia’s 2025-26 Pre-Budget Submission at www.accommodationaustralia.org.