The government’s recent changes to short-stay accommodation regulations have the potential to create disruption far and wide, from the short and long term rental property markets to the wider tourism industry, as well as Australian and international holiday-makers.
After reviewing the Short Stay Levy Bill introduced by the Victorian Government, and seeking feedback from their own members, the REIV have outlined their concerns.
According to the REIV, there is little evidence to suggest the 7.5% short stay accommodation levy will create a shift from short term to long term rental investment as the government expects. Real estate industry members are in agreement with the REIV, in fact they suggest the new levy could encourage even more investors to desert the property market altogether, thereby exacerbating the problem the government intends it to resolve.
If this levy doesn’t benefit long term tenants and has a negative impact on property investing as well as the wider tourism industry, and anyone who utilises Victoria’s short term rentals such as Airbnb accommodation for temporary work assignments or holidays, do we need it?
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