Backlash to new holiday rentals levy from Port Fairy small business

Premier Daniel Andrews on Wednesday, September 20 announced short-stay rental platforms, such as Airbnb and Stayz, will face a 7.5 per cent levy from 2025.

Langley Accommodation property manager Jamie Langley who has 115 properties and Warrnambool and Port Fairy said the impact of the new levy wold hit not just property owners but flow on to cafes and restaurants.

Mr Langley said he had been waiting to see what the government was planning to do.

"I tell you what, I've been worried about it," he said.

He said property owners would "absolutely" pass the cost on to holidaymakers - that's an extra $25 a night for an average property and as much as $40 for higher-end properties.

But with the average stay three nights, he said holidaymakers could be paying an extra $75 for a weekend getaway.

"It's not going to make Victoria look like a great place to go for a weekend getaway," he said.

Before COVID, his business' property portfolio was booked about 107 nights on average a year - it rose to 180 during the pandemic - but it was now back to about 110.

Property owners, he said, could be up for a levy bill of $2500 on average but that would be higher for more expensive properties.

"That will absolutely be passed on. There's no way an owner can afford to absorb that. Our margins are that skinny at the moment," he said.

He said property owners of the smaller cottages and more affordable end of the market which would be impacted the most. "That's going to hurt them," he said.

"Land tax has also gone through the roof. I've got owners ringing up saying 'you need to rent the property out more because the land tax has gone up'."

Mr Langley said many were already paying to have their properties professionally managed, and now they were going to get slogged with another 7.5 per cent on top of that.

The new tax comes just months after the city council rolled out its $400 levy on short stay accommodation - a charge that will now go when the new levy comes into effect.

He said he understood the need for more affordable housing but didn't believe this was the right way to go about it.

"It's only going to have a negative impact. How much at this point I don't know."

After a boom to the tourism economy in the region following the pandemic the cost of living was starting to bite.

Mr Langley said bookings this year were already down about 20 per cent on last year.

"Given the already economic pressures that are already out there, it's just another kick in the guts," he said.

"It's just another dip in the pocket of the small business owner," he said.

His business employs 20 housekeepers, three office staff and supports a number of trades such as electricians, plumbers and lawn mowing.

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