By allowing body corporates to ban short-stay rental accommodation, Dr Liam Davies said the reforms may also “help address tensions where residents feel they are living in a hotel”. Photo: Zetter.
The Victorian Government’s reduction of short-term rentals has been welcomed on a local level, but Dr Liam Davies claims it “may not significantly impact the state’s rental affordability issues”.
Last week the Short Stay Levy Bill 2024 was passed in Victorian Parliament. It is set to introduce a 7.5 per cent levy on short-stay accommodation bookings from the beginning of next year.
Platforms such as Airbnb and Stayz will be affected by the State Government’s effort to provide more longer-term accommodation for families who need a place to live.
However, Dr Davies, an urban planning expert and lecturer at RMIT’s Centre for Urban research, believes “the effect of the reform will probably be minimal”.
“The latest census indicates there are up to 50,000 short-stay rental accommodations in Victoria,” he said. “It is unlikely that all these dwellings would be shifted to long-term rentals.”
As part of the Victorian Government’s Housing Statement, this policy was announced with the expectation of raising about $60 million a year for Homes Victoria to build and maintain social housing.
It will also contribute 25 per cent of its funds to regional Victoria, where nearly half of the state’s 63,000 short-stay places are located.
There will also be changes to the planning system to give local councils the power to regulate short-stay accommodation. Dr Davies said these new powers might help in areas where there was acute rental pressure.
“For example, in parts of regional Victoria where tourism impacts local workers and lower income households,” he said.
“By restricting short-stay rental accommodation, councils may be able to better balance the needs for locals and workers to find suitable housing, and the needs for tourists to be able to visit and holiday.”
The Victorian Greens hailed the recent legislation. Representatives and candidates for Merri-Bek, Yarra City, City of Melbourne, Surf Coast, Mount Alexander Shire, Bass Coast Shire and Manningham City Council have all thrown their support behind the reforms.
Greens Mayor of Merri-bek, Adam Pulford, said all levels of government should be taking action within their power to make sure people have a home.
“Last September, Merri-bek gave in-principle support for applying a cap on the number of days a year a property can be used for short-stay accommodation in our city,” he said.
“We now have certainty that we have the power to do this, and I will move for Merri-bek to put in place a cap to help make more properties homes.”
