Starting January 1, 2025, a 7.5% short-term rental levy applies to eligible bookings in Victoria, Australia.
This article explains how the levy works and how it is handled in Direct bookings.
How the Levy Works
The levy applies to the total booking price, including:
Accommodation fees
Cleaning fees
Guest service fees
GST
The levy is included in the total amount paid by the guest.
The levy is calculated as part of the total booking price, not added separately after.
How Hospitable Handles the Levy
Direct Premium
For Direct Premium bookings, Hospitable:
Calculates the levy automatically
Collects the levy from guests
Remits the levy to the Victorian State Revenue Office
Direct Basic
For Direct Basic bookings:
You must manually configure the levy as a tax
You are responsible for reporting and remitting the levy
Also see: Taxes for Direct Bookings
How the Levy Is Calculated
The levy represents 7.5% of the total booking price.
Because it is included in the total, Hospitable calculates it as approximately 8.1% of the pre-levy amount to ensure accuracy.
This ensures the correct portion of the total booking is allocated to the levy.
Important Details
The levy is calculated based on the checkout date
Bookings spanning multiple periods are not split
The full levy is applied based on when the stay ends
Exemptions
Some properties may be exempt, such as:
Properties used as a principal place of residence
To claim an exemption:
Complete an exemption declaration via the Victorian government's online form
Submit the declaration to Hospitable Support — Hospitable will store it for your Direct Premium properties as required by law
Hosts are responsible for ensuring exemption eligibility and accuracy.
Important Things to Know
The levy applies to eligible bookings in Victoria only
Direct Premium automates collection and remittance
Direct Basic requires manual setup and reporting
The levy is included in the total booking price
Hosts are responsible for compliance and exemptions
Additional Resources
For full details on the levy, visit the Victorian State Revenue Office — Short Stay Levy.