Hotels, motels and serviced apartments are specifically excluded from the proposed law.
The levy would apply to any accommodation booking made through a booking service for un-hosted accommodation where stays were for 28 days or fewer.
“We expect that this bill may have a modest impact on long-term rentals being available to local renters, rather than short term visitors,” said the ACT’s treasurer Chris Steel.
“Short stay platforms will remain an important part of the visitor economy, but this strikes a fairer balance between the costs of operating hotel, motel and other accommodation which is subject to reasonable regulation and often payroll and other taxes.
“The revenue generated goes to delivering Canberra’s great local tourism and events as well as other critical government services.”
The proposed levy could have an impact on hotel prices in the ACT by reducing accommodation availability if those offering short term accommodation flip their properties into the long-term rental market.
However, the levy could also see more conference delegates opting for hotel rooms if there is a reduction in other available accommodation options, which could lead to greater commissions for agencies facilitating conference accommodation.
South of Canberra, Victoria already has a short-term accommodation tax in place, at a higher rate than that proposed by the ACT – 7.5 per cent.
