The Victorian Government will allow local councils to limit properties listed on accommodation-sharing platforms like Airbnb and Stayz, and they don’t like it. What’s the scam?
The scam is that holiday house landlords have long enjoyed extraordinary tax benefits by allowing 100% of property expenses to be tax deductible, regardless of how many days of the year they are rented out. It’s a practice that limits the availability of rental housing and forces up rent for everyone else. It is estimated to cost the Federal budget up to $5B a year.
Airbnb tax rort: why is the government subsidising holiday landlords?
In Victoria, a 7.5% levy will come into force from January 1, 2025. Now, the State Government will also give local councils and owner’s corporations the power to ban residents from using platforms like Airbnb to rent out their properties.
The levy is expected to raise around $37.5m in 2025, rising to $75m per financial year thereafter. The money is to be put towards social and affordable housing.
Anthony Albanese has previously been supportive of the move, and Federal Housing Minister Julie Collins flagged support for a regulatory crackdown on the short-term rental market in June 2023 but has done nothing yet.
Airbnb and Stayz have been advocating for a general tourism tax instead of a levy, Airbnb calling it an “unfair triple tax plan” in an earlier statement.
Airbnb, not quite Qantas, but a fine scam | Scam of the Week
