Short stays, long battles: Airbnb and Victoria’s new 7.5 per cent short-stay levy
Article posted by innercitynews.com.au
Melly Shute | 30th September, 2025
If you live in an inner-city apartment and have ever wondered whether you bought a home or accidentally invested in a low-budget hostel, here is some news: Victoria has finally noticed.
From January 1, 2025, the Short Stay Levy Act 2024 came into effect. The headlines focused on the new 7.5 per cent levy on booking fees, but the real story is what else the law does. It gives owners’ corporations (OC) more power than a nosy neighbour with too much time on their hands.
OCs assemble
Up until now, OCs were busy fixing lifts, arguing over whether the lobby pot plant was ugly or architectural, and sighing at whoever keeps dumping a mattress in the recycling bin. This law gives them the ability to ban short-stay accommodation. With a special resolution requiring 75 per cent of owners to agree, your OC can now officially say: “No Airbnb for you!”.
This is a huge shift. The Supreme Court once said OCs could not meddle with how you used your own apartment. Now they can, even if your guests are quietly staying put.
What even is a “short stay”
A short stay is any letting for 28 days or less where guests do not actually live there. Hens parties in feather boas? Short stay. Footy fans singing a theme song? Short stay. Cousin’s mate from Germany crashing for two weeks? Short stay. Rent while in Santorini? Fine. Invite 50 strangers? Instant hostel.
Winners and whingers
The government says the levy will fund affordable and social housing. Maybe it will, maybe it will not, but at least it sounds good on a press release. Residents get peace and quiet while short-stay hosts face extra costs. Developers will have to decide if they market their towers as tranquil sanctuaries or Airbnb cash machines with city views.
Enforcement is the fun part
Passing the rule is easy. Enforcing it is like spotting the difference between a legit tenant and Airbnb guest number 437 in the lift. Do you interrogate everyone, demand proof of principal residence, or hire a sniffer dog trained to detect freshly laundered linen? None of the options are pretty.
And finally …
Whether you love it or hate it, this new law gives apartment meetings a new argument starter. Forget stairwell lightbulbs, it is all about Airbnbs now.
For some it is sweet relief from 2am rooftop karaoke. For entrepreneurs trying to squeeze extra dollars from their asset, it is a major blow to the side hustle, like discovering Newman has been stealing your mail.
Either way, your building has become ground zero for the short-stay revolution.
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