Short-term rental taxes fail to deliver on housing promises
Victoria's short-term rental tax was intended to bring more housing to the real estate market but the evidence is mounting that it's failing to live up to its ambitions.
Taxes on short-term rental properties have, it has been argued, had unforeseen negative consequences, including on tourism (pictured: Torquay, Victoria). (Image source: GagliardiPhotography/Shutterstock.com)
The Victorian Government’s 7.5 per cent tax on short-term rentals has failed to deliver any meaningful improvement to the state’s rental supply, echoing similar failures internationally, experts say.
The “Airbnb tax” came into effect on 1 January 2025, yet since then, Melbourne’s rental shortage had become even worse, according to rental vacancy data from SQM Research.
“This policy hasn’t moved the dial,” said Ethan Brown, Asia Pacific general …
