Opposition leader John Pesutto vows to dump Airbnb tax
Victorian Opposition leader John Pesutto has vowed to dump the state’s controversial ‘Airbnb tax’ if elected, saying holiday-makers shouldn’t pay for Labor’s financial mismanagement.
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Victoria’s controversial ‘Airbnb tax’ would be scrapped as a top priority under a Coalition government, Opposition Leader John Pesutto has promised.
The Herald Sun can reveal shadow cabinet on Monday agreed to repeal the tax — which will hike the price of Victorian holidays — in the first parliamentary sitting week after the November 2026 state election.
It comes as the government’s Short Stay Levy Bill 2024, which has already passed the lower house, will be debated in the upper house this week with the Opposition unlikely to secure enough support to block its passage.
Opposition Leader John Pesutto has been vocal about his opposition to the tax since it was first mooted by the government, but this is the first time he has committed to repealing it.
“This tax isn’t about getting more homes built and will only add to growing cost-of-living pressures under Labor,” Opposition Leader John Pesutto said.
“Regional businesses and Victorians simply hoping to enjoy a weekend away shouldn’t be the ones to pay for Labor’s financial mismanagement.
“The future government I lead will scrap this tax.”
The major announcement comes as Mr Pesutto prepares to hold his first party room meeting since a group of detractors threatened to challenge his leadership.
Critics have complained of a perceived failure to clearly outline policy positions in a way which differentiates the opposition from the government.
But cross-factional party room sources said on Monday any idea of a leadership challenge was “dead for now”.
“You can never know for sure, but it has gone all quiet and given last week’s polling there doesn’t appear to be any appetite to challenge,” one MP said.
Redbridge polling which was published last week put the Coalition ahead of Labor on a two-party-preferred basis, 51 to 49, for the first time in seven years.
The new short stay laws would legislate a 7.5 per cent tax on bookings from January 1, in a move the government hopes will encourage investors to return properties to the long-term rental market.
Local councils would still be able to impose their own charges after the levy is introduced, despite a government promise to prohibit this.
Government modelling has forecast the new tax could generate $60m a year, but industry experts have panned it as unworkable, and say it will severely damage Victoria’s local tourism market.
Shadow treasurer, Brad Rowswell, said the tax was the 55th new or increased tax imposed by Labor since it came to office in 2014.
“Premier Jacinta Allan simply does not understand the cost pressures that Victorians are under at the moment,” he said.
“Taxing Victorians to go on holiday shows just how out of touch the Victorian Labor government has become.”
Mr Rowswell said repealing the tax would mean more affordable holidays and stronger regional businesses for Victorians.
The Allan government has faced a fierce backlash over the proposed tax, with Airbnb actively campaigning against the move and accusing the government of triple-taxing holiday-makers.
It is understood the Coalition will seek to move a raft of amendments to the current Bill which would stop the tax being applied to disabled holiday makers or those using short stay accommodation to flee domestic violence situations.
It would need the overwhelming support of the crossbench to make any changes to the proposed laws, or block the Bill being passed in its entirety.
Originally published as Opposition leader John Pesutto vows to dump Airbnb tax
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