The state government is planning to slug Airbnb and Stayz guests with a 5% levy to bankroll first home buyer assistance – a move the tourism industry says could hurt the state’s visitor economy.
Treasurer Eric Abetz today released draft legislation for the proposed short-stay levy, which would apply to bookings made from July 1 next year.
Hotels, motels, pubs, bed and breakfasts and caravan parks would be exempt from the tax.
Abetz said guests, not property owners, would wear the cost.
“… The levy will be paid overwhelmingly by interstate and overseas travellers, with an estimated 83% of Tasmanian short stays used by interstate or overseas travellers,” he said.
The government expects the tax to raise about $11 million a year, helping fund its stamp duty exemption on homes up to $750,000, along with a $30,000 first home owner grant.
But Tourism Industry Council Tasmania chief executive Amy Hills said the sector had been left out of the conversation.
“We’ve heard nothing since this was announced in 2024 and the government is now trying to effectively implement a new solution in less than six months’ time,” she said.
“The fact that we are now talking about putting a new tax on visitors, while other jurisdictions like Queensland are investing around a billion dollars into growing its visitor economy, just shows this is not the right approach to protecting the future of our industry which supports one in six Tasmanian jobs.”
The Short Term Accommodation Association Australia warned the impact on travellers would be closer to 10% once platform commissions and service fees were factored in.
“This will not be a flat 5% levy in the real world,” executive director Keiran Craig-Jones said.
He also questioned the government’s housing credentials, pointing out Tasmania was the only state yet to sign up to the federal ‘Help to Buy’ scheme, which allows eligible buyers to purchase a home with a 2% deposit.
“If the Tasmanian government is serious about helping first home buyers, it is extraordinary that it has failed to opt into a nationally available scheme that could already be supporting hundreds of Tasmanians,” he said.
The short-term rental industry argues Tasmania’s levy goes further than similar taxes interstate, capturing hosted accommodation that Victoria and the ACT exclude.
Submissions on the draft bill close on February 25, with the government planning to introduce final legislation later next year.
