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✓ The AdvocatePower & Policy

Tasmania rejects Rockliff government's short-stay rental levy

Tasmania's parliament rejected a proposed 5 per cent levy on short-term rental platforms like Airbnb that would have taxed the tourism industry.

The Rockliff government's plan to impose a 5 per cent tax on short-stay rental platforms has been rejected by Tasmania's parliament. The levy would have targeted Airbnb and similar services.

As Greens MP Cassy O'Connor said, these platforms have "stripped thousands of homes from the rental market and driven up rents". Labor opposed the measure as an unfair tourism tax.

Ms O'Connor backed the levy, calling it at least a small step to help address the state's housing crisis. Victoria, under a Labor government, introduced a 7.5 per cent levy last year.

The rejection leaves Tasmania without new revenue from the short-stay industry and without a tool to discourage conversion of residential rentals to tourist accommodation.

5 per cent
Proposed levy
Greens MP Cassy O'Connor
Supporter

Why it mattersWithout the levy, Tasmania loses a way to fund housing support and keep rental homes in the long-term market. The decision signals that short-stay platforms will face no new state tax on their operations.

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