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Daniel Andrews hints at imminent short stay accommodation levy announcement

Victorian Premier Daniel Andrews has given his strongest indication yet that Victoria will implement a levy of up to 7.5 per cent on short-stay rentals such as Airbnb.

Victorian Premier Daniel Andrews. Picture: NCA NewsWire / Luis Enrique Ascui
Victorian Premier Daniel Andrews. Picture: NCA NewsWire / Luis Enrique Ascui

Daniel Andrews has given his strongest indication yet that Victoria will implement a levy of up to 7.5 per cent on short-stay rentals such as Airbnb, in a bid to increase housing availability that has been dubbed a “holiday tax” by the ­opposition.

State cabinet was set to sign off on the proposal on Monday afternoon, ahead of a joint press conference with Anthony Albanese on Tuesday, at which the Prime Minister and Premier are expected to discuss details of how the Housing Australian Future Fund will increase housing supply.

In his first interview on morning talkback radio in almost a year, Mr Andrews also signalled the first stage of his government’s housing statement, to be announced in coming days, would likely include an overhaul of planning approvals, strongly hinting that it would strip power from local councils and the Victorian Civil and Administrative Tribunal and given to the state government.

Asked directly whether he would tax short-stay accommodation, the Premier said he was “not going to rule that in or out”.

“There’s between 30,000 and 40,000 homes that are … short stay, which means they’re not available for someone to lease, to rent, on a longer-term basis,” he told new ABC radio Melbourne mornings host Rafael Epstein.

“There’s no denying that that means there are a number, a significant number, of properties that would have 10 years ago, 15 years ago been available for longer-term rental, for a year, for two years.”

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Pressed on whether that meant a tax, Mr Andrews said: “Well, let’s wait and see. We will make announcements about the housing statement, at least the first part of that. This is a big issue … I’m not here today to rule things in or out.”

NSW and Queensland have also indicated they are considering introducing taxes on short-stay accommodation, which exist in many overseas jurisdictions.

Mr Andrews also blamed local councils and VCAT for the slow pace of planning approvals, which he said was contributing to a lack of housing supply, saying councillors would often “refuse to make the decision”, forcing developers to take the matter to court.

“So then you blink and you look around, and suddenly VCAT, who were elected by nobody, are planning our city. Like, how’s that a good idea? How’s that an accountable way of doing things?” he said.

Mr Andrews agreed he had the power to change the system, indicating an overhaul is imminent.

“Well, indeed, and whilst I’m not here to make any announcements, the notion of a trade-off where developers get on and get quick approvals for high-quality product … like that’s a way forward,” he said.

The interview kicked off Epstein’s first show as mornings host, and comes after Mr Andrews refused numerous requests from previous host Virginia Trioli, who last interviewed him in October 2022 ahead of the state election.

The Premier also declined to be probed by Neil Mitchell on 3AW.

He refused to engage with repeated questions from Epstein regarding criticism of his govern­ment by Ombudsman Deborah Glass and former IBAC commissioner Robert Redlich, claiming the latter’s concerns over “grey corruption” in Victoria were not relevant because he is no longer commissioner.

“I’m not here to have discussions about what the former chief justice thinks, I’m not here to have discussions about what the former chief judge of the county court thinks, or the IBAC commissioner, the former IBAC commissioner before Mr Redlich became the IBAC commissioner. Like, if we spent all our time talking about ‘former former former’, well that’s not very future-focused. Let’s get on and get things done,” he said.

Opposition Leader John Pesutto dubbed the short-stay accommodation levy a “holiday tax”.

“What the Andrews government needs to do is stop wasting money,” he said. “Unless and until the government does that, it’s not fair or right for Daniel Andrews to shift his problems to households.”

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Original URL: https://www.theaustralian.com.au/nation/politics/daniel-andrews-hints-at-imminent-short-stay-accommodation-levy-announcement/news-story/90a0efc05473b15624e8a65963d5d070