Understanding the 7.5% Short Stay Levy: Essential Insights for Accommodation Providers

What type of premises/accommodation are affected?

Any stay for a continuous period of less than 28 days, regardless of whether the booking is made through a booking platform, a travel agency or directly with the accommodation provider (*subject to Exclusions).

Key Details at a Glance

Navigating Complexities

While the SSL Act application is relatively straight-forward at a high level, we consider that there is likely to be complexity concerning the qualification of the exclusions. For example:

• What if you are renting out a spare room or granny flat on Airbnb for some extra cash?
• What if you are running a business offering multiple holiday apartments for short stays in a hotel-like setup?

Determining whether your property qualifies for an exclusion can be tricky.

If you have any questions in determining whether your property qualifies for one of the exclusions, please get in touch with our Property Law Team.

Steps to Take

 1.     Registration Portal

The State Revenue Office registration portal is now available. All registration, lodgement, and payment processes will be managed through the portal unless a separate notice of assessment is issued.

If you do not register and your property is subject to the Levy, you could face retrospective charges and potential interest and penalties.

2.     Record Keeping

It’s important to maintain detailed records of all bookings made on or after 1 January 2025, including booking dates, duration, and fees. In the event of an audit or dispute, these records will be crucial. Separate records of cancelled bookings and any partial refunds should also be prepared, as these will not be subject to the Levy.

Impact on Owners Corporations

The SSL Act has also made amendments to the Owners Corporations Act 2006, which allow owners corporations to ban short-stay accommodations (less than 28 days) via a special resolution.

Developers may also incorporate such restrictions into the owners corporation rules of new developments, which could substantially affect the operation of short-stay businesses.

Conclusion

With the implementation of the SSL Act, it is crucial to understand how the legislation impacts your business and stay informed about any changes that might affect your operations.

How Sharrock Pitman Legal can assist

If you require assistance navigating these changes or wish to apply for a private ruling with the State Revenue Office tailored to your specific circumstances, please do not hesitate to contact a member of our Property Law team. Alternatively contact us at sp@sharrockpitman.com or call our office on 1300 205 506.

The information contained in this article is intended to be of a general nature only and should not be relied upon as legal advice. Any legal matters should be discussed specifically with one of our lawyers.

Liability limited by a scheme approved under Professional Standards Legislation.‍