Tasmanian Liberals Promise Short-Stay Levy If Re-elected

Tasmanian Liberals Promise Short-Stay Levy If Re-elected
(AlesiaKan/Shutterstock)
AAP
By AAP
2/17/2024
Updated:
2/17/2024
0:00

Tourists and locals who stay in a Tasmanian Airbnb will be slugged a surcharge if the nation’s only centre-right Liberal government survives the upcoming state election.

Premier Jeremy Rockliff has revealed plans for a 5 percent levy on short-stay rentals such as those advertised on Airbnb and Stayz if the Liberals are re-elected on March 23.

The proposed levy of 5 percent would be paid by consumers and is expected to generate $11 million (US$7 million) a year, which the Liberals say will be entirely redirected to give first home-buyers a leg up.

“This policy will help to ease the supply side pressures and to help more young Tasmanians to buy their first home,” Mr. Rockliff said on Sunday.

“When Tasmanians have a key to their own home, they also unlock countless opportunities.”

Increasing number of homes on the short-stay market reduced availability and contributed to higher rents, Housing Minister Nic Street said.

Hotels, pubs, and other traditional accommodation operators will not be captured by the levy.

Mr. Rockliff argued the surcharge would be mostly paid by interstate and overseas travellers, pointing to data showing 83 percent of Tasmanian short-stay users not being local.

Victoria is introducing a 7.5 percent consumer-facing levy on short stays from 2025 in a bid to raise $70 million a year to build and maintain social housing.

NSW is considering following suit with its own rental booking surcharge, which is already in place in parts of Germany, France, and the United States.

The Tasmanian Liberals have also promised to ban arbitrary caps on short-stay listings and geographic distortions of the market.

Airbnb and Stayz have been contacted for comment.

The policy unveiling comes as former speaker Sue Hickey threw her hat into the ring to return to the Tasmanian parliament.

The former state Liberal MP is making a second tilt as an independent candidate for the seat of Clark after she was disendorsed in 2021 and quit the party, leaving the government in minority.

Her defection prompted then Premier Peter Gutwein to call an election, a year earlier than it was due.

Tasmanians are again heading to an early poll after the government failed to resolve a stand-off with two crossbench independents.

The Liberals start the campaign with 11 incumbent MPs, while Labor has eight, the Greens two, and there are four independents.

The March poll will expand the parliament from 25 to 35 seats.