Understanding the Proposed Changes to Airbnb Regulations in Victoria

You may have heard about the recent developments concerning Airbnb regulations in Victoria, including a proposed 7.5% levy and the potential for local council caps on rental nights. While these changes are significant, we don’t expect them to negatively impact your investment. At AirKeeper, we’re closely monitoring the situation and are here to provide clarity on what these changes could mean for property owners like you.

The 7.5% Levy: What Does It Mean for Property Owners?

One of the key elements of the proposed changes introduces a 7.5% levy on short-term rentals. However, this levy does not directly affect property owners. Instead, Online Travel Agencies (OTAs) like Airbnb will collect the levy, similar to models used in New Zealand and other destinations, and pay it directly to the government.

While this may lead to a slight increase in guest pricing, the experience from other global tourist destinations has shown that such levies typically do not harm property owners. In fact, these taxes have been successfully implemented without deterring guest demand, allowing owners to maintain strong booking rates and returns.

Timeline for Implementation: No Immediate Changes

At this stage, we don’t yet have a clear timeline for these regulations. Even if the proposals receive approval, the implementation phase will likely take time, allowing property owners and management companies like AirKeeper to adapt and plan accordingly.

During this period, we’ll continue to monitor the situation and ensure that you are fully prepared for any changes well in advance. Rest assured, we’ll have plenty of time to adjust your pricing and strategies to maintain strong returns.

Council Caps and Body Corporate Rules: What to Expect

Another aspect of the proposed regulations is granting local councils the power to impose caps on the number of rental nights allowed for short-term rentals. Body corporates may also have similar authority over properties in managed communities. However, we believe it’s unlikely that such restrictive measures will be widely adopted.

The 7.5% levy will likely generate significant revenue, which could reduce the incentive for councils or body corporates to enforce caps. In Sydney, the introduction of rental caps increased owner income due to reduced competition in the market. If similar caps apply in Victoria, property owners may see a comparable outcome.

Proposals Not Finalised: Changes Are Still Possible

It’s important to remember that these proposals are still under discussion and are not yet law. As is common in the legislative process, the final regulations may differ significantly from the initial proposal.

AirKeeper will keep a close eye on these developments and update you with any significant changes.

How AirKeeper Can Help You Navigate the Changes

At AirKeeper, we remain committed to maximising your property’s potential, no matter the regulatory environment. We’re here to help you navigate these changes and adapt to any new regulations that may come into effect. Our team will work with you to ensure your property continues to thrive, providing guidance on adjusting pricing, managing guest expectations, and staying compliant with any new rules.

If you have any concerns or questions about these proposed changes, please don’t hesitate to reach out to us. We’re here to provide support and ensure your property remains a valuable asset.