New South Wales Considers Tax On Short-Stay Accommodation To Address Housing Crisis
The New South Wales government considers to impose a tax on short-stay accommodation, including platforms like Airbnb, following the footsteps of Victoria.
NSW Premier Chris Minns, along with senior ministers, has expressed openness to the idea of imposing a levy in an effort to fund affordable housing initiatives and alleviate the ongoing housing crisis.
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Treasurer Daniel Mookhey has asked the Treasury to study Victoria’s 7.5 per cent tax and examine the impact of similar measures overseas.
“We are looking at what Victoria has proposed,” he said.
“What is happening in Victoria is similar to what’s happening in NSW, which is similar to what’s happening in places like California, Spain, London as well. We are seeing long-term rentals being pulled from the market and short-term rentals taking their place.”
Mr Mookhey said that short-term rentals have contributed to the decreasing availability of rental properties in NSW.
This development comes after the Treasurer unveiled NSW Labor’s first budget in over a decade earlier this week, which received criticism for not adequately addressing the housing crisis.
The NSW government has been exploring the possibility of imposing caps on short-term rentals, including those on platforms like Airbnb and Stayz.
Additionally, a separate 60-day limit for homes in the Byron Bay region has been under consideration following advice from the Independent Planning Commission.
As of May, there were 45,209 registered short-term rentals in NSW, representing an increase of 13,000 since December 2021.
Victoria recently introduced a short-stay levy, expected to generate approximately $70 million annually, to fund social and affordable housing initiatives.
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