Airbnb has urged the state government to water down its proposed 5% short stay levy, warning the tax could hurt the state’s visitor economy and unfairly target everyday homeowners.
In its submission to the Short Stay Levy Bill 2025 consultation, the accommodation platform called for a “primary residence” exemption and asked for the start date to be pushed back by at least 12 months to July 2027.
The draft bill, released in December 2025, would impose a 5% levy on short stay accommodation booked through platforms like Airbnb and Stayz.
It is expected to raise around $11 million a year, with all revenue directed towards first home buyer assistance.
The levy would apply to stays of fewer than 28 nights.
Traditional operators such as hotels, pubs, bed and breakfasts and caravan parks would be exempt.
Airbnb said it supported “fair and sustainable regulation” but argued the levy needed significant changes before it was ready to take effect.
The company pointed to an Oxford Economics study that found Airbnb contributed $500 million to Tasmania’s gross state product in 2024, supported 3,300 jobs and generated $200 million in wages.
It also flagged concerns that the levy could undermine Tasmania’s 2030 visitor economy strategy, which aims to more than double annual visitor spending to over $5 billion.
“Airbnb believes it is critical that introduction of a levy does not disturb the existing statewide registration and data sharing arrangements that operate successfully across the state,” the company said in its submission.
The platform warned that “fragmented and arbitrary restrictions” on short stay accommodation would place a “significant burden” on hosts.
The Short Term Accommodation Association Australia has also opposed the levy, arguing the real cost to travellers could reach 10% once platform fees and tax compounding are factored in.
Community sector group TasCOSS took a different view, recommending the levy be increased to 7.5%.
It argued low-income Tasmanians face the sharpest housing stress but are least likely to benefit from first home buyer schemes.
Public consultation closed on February 25. The government is expected to introduce the finalised bill to parliament later this year.
