Victoria’s peak tourism body has urged the Allan government to abandon its tax on short-stay accommodation, warning it will harm regional tourism while failing to increase the supply of rental housing.
Victoria's peak tourism industry body has warned the Victorian government that its new tax on short-term accommodation will harm regional tourism while doing"little to nothing" to tackle the rental crisis.
"This new tax comes at a time when we are already seeing a softening of the domestic market with intrastate regional visitation showing signs of decline in the last two quarters,” the tourism body said. The tourism body argued that while short-term rentals were a “crucial component” of the overall accommodation available in regional Victoria, a recent survey of Airbnb property owners found they made up just one or two per cent of the overall housing stock.
“The reality is that this tax will do little to achieve the desired outcome as these property owners will merely pass the 7.5 per cent tax onto the customer, with little impact on their decision to keep properties on the short-stay market. The other recommendations include calls for the Allan government to lobby the federal government to fast-track funding for a third runway at Melbourne Airport, and to recommit to providing $50 million in funding for a train station at Avalon Airport.
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