How Hospitable Handles the Levy
For Direct Premium customers, Hospitable will:
Calculate the levy automatically
Collect the levy from guests
Remit the levy to the Victorian State Revenue Office.
For Direct Basic Users:
If you're using Direct Basic, you'll need to manage the levy independently by adding it as a tax for properties in Victoria. The Victorian State Revenue Office will provide a portal for levy registration, which should be available from January 1, 2025.
For more information on how to add taxes for Direct Basic, see How Taxes are Handled in Direct.
How the levy is calculated
The short stay levy is 7.5% of the total amount booking amount, which includes the levy itself. The total amount booking amount includes the accommodation, guest fees (like cleaning fees), and guest service fees.
To ensure the correct 7.5% levy is collected, Hospitable calculates it as 8.1% of the pre-levy total. This adjusted rate accounts for the fact that the levy is part of the total amount paid.
Example:
Item | Fee |
Accommodation - $100/night x 2 nights | $200 |
Cleaning fee | $50 |
Guest service fee | $10 |
Short stay Levy (8.11%) | $21.08 |
Total booking price | $281.08 |
The short stay levy is 7.5% of the total booking price ($21.08 / $281.08 = 7.5%)
Key Details for Hosts:
The levy is calculated based on the final day of the stay
For stays spanning across quarters, the levy is not divided - it's accounted for on the checkout date
Property Exemptions
Some properties may be exempt from the levy, such as those that serve as a principal place of residence.
To claim an exemption:
Property owners and/or managers must complete an exemption declaration via the Victorian government's online form.
The declaration must be submitted to Hospitable for record-keeping purposes, contact Hospitable Support to assist you with your exemption for Direct Premium properties.
Hospitable will store these declarations for Direct Premium properties, as required by law.
Important: Property owners and managers are responsible for the accuracy of their exemption declarations. While Hospitable will maintain records, the onus is primarily on the property owner to ensure correct exemption status.
Additional Resources
For more information about the levy, visit Victorian State Revenue Office - Short Stay Levy