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Melbourne

Victoria · Australia
Active
Last updated: 2026-06-23  ·  Last verified: 2026-06-23  ·  Region: International

At a Glance — Melbourne Airbnb & STR Rules

RuleDetails
Regulatory StatusPermitted with registration
Permit / License RequiredNo statewide license; hosts/platforms responsible for the levy must register with the State Revenue Office (SRO) short stay levy system. Some local co
Tax Rate7.5% Short Stay Levy on the total booking fee (including accommodation charge, cleaning fees, GST and the levy itself), excluding credit card fees. Ap
Night / Day CapNo statewide night cap as of 2025–2026 (proposed but not enacted); individual councils may introduce their own night limits, typically targeting unhos
Minimum StayLevy applies to stays of less than 28 consecutive days (28+ days not subject to the levy and falls outside the short-stay definition).
Permit FeeNo registration fee documented; the cost is the 7.5% levy itself. Local council registration/permit fees may apply (amounts vary; Unknown).
PenaltiesUnknown for specific levy penalty amounts (standard SRO non-lodgement/non-payment penalties and interest apply).
Primary Residence RequiredNo — but the owner's/renter's principal place of residence is exempt from the levy (i.e., levy targets non-primary-residence short stays).
Occupancy LimitUnknown (no statewide occupancy cap; set by planning/local laws if any).
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Melbourne Airbnb & Vacation Rental Regulation Overview

Melbourne Short-Term Rental Regulations Overview

Short-term rental operations in Melbourne, Victoria are permitted under an active regulatory framework as of 2026. Hosts operating on Airbnb, VRBO, or other vacation rental platforms must obtain proper licensing: No statewide license; hosts/platforms responsible for the levy must register with the State Revenue Office (SRO) short stay levy system. Some local councils operate separate registration/permit scheme. The associated permit fees are No registration fee documented; the cost is the 7.5% levy itself. Local council registration/permit .

Tax Requirements for Airbnb Hosts in Melbourne

Short-term rental operators in Melbourne should be aware of these tax obligations: 7.5% Short Stay Levy on the total booking fee (including accommodation charge, cleaning fees, GST and the levy itself), excluding credit card fees. Applies to stays under 28 consecutive days.. Yes — for direct bookings, the owner must register for the short stay levy with the SRO and lodge returns; platforms register separately and need not .

Hosting Rules and Restrictions in Melbourne

Key operational rules for vacation rental hosts in Melbourne include: Primary residence requirement: No — but the owner's/renter's principal place of residence is exempt from the levy (i.e., levy targets non-primary-resid. Rental day cap: No statewide night cap as of 2025–2026 (proposed but not enacted); individual councils may introduce their own night lim. Occupancy limit: Unknown (no statewide occupancy cap; set by planning/local laws if any).. Minimum stay: Levy applies to stays of less than 28 consecutive days (28+ days not subject to the levy and falls outside the short-sta.

Zoning and Location Requirements in Melbourne

Zoning considerations for short-term rentals in Melbourne: Councils may regulate short stays through planning and local laws; owners corporations (OCs) can ban short-stay use of lots via a special resolution (75% owner approval).. Density rules: Unknown statewide; left to local councils.. Insurance: Unknown (no statewide STR insurance mandate sourced)..

Penalties for Non-Compliance in Melbourne

Hosts who fail to comply with Melbourne's short-term rental regulations may face enforcement action. Unknown for specific levy penalty amounts (standard SRO non-lodgement/non-payment penalties and interest apply)..

Platform Obligations in Melbourne

Platform obligations for services like Airbnb, VRBO, and Booking.com operating in Melbourne: Platforms (Airbnb, Stayz, Booking.com) must register for the levy and collect/remit it on all bookings made through their platform; platforms do not register individual properties. Airbnb auto-collect.

Full Regulatory Details

Regulatory Status
Active
License / Registration
No statewide license; hosts/platforms responsible for the levy must register with the State Revenue Office (SRO) short stay levy system. Some local councils operate separate registration/permit schemes (distinct from SRO).
Tax Registration
Yes — for direct bookings, the owner must register for the short stay levy with the SRO and lodge returns; platforms register separately and need not register individual properties.
Permit Fee
No registration fee documented; the cost is the 7.5% levy itself. Local council registration/permit fees may apply (amounts vary; Unknown).
Primary Residence Rule
No — but the owner's/renter's principal place of residence is exempt from the levy (i.e., levy targets non-primary-residence short stays).
Night / Day Cap
No statewide night cap as of 2025–2026 (proposed but not enacted); individual councils may introduce their own night limits, typically targeting unhosted investment properties.
Occupancy Limit
Unknown (no statewide occupancy cap; set by planning/local laws if any).
Tax Rate
7.5% Short Stay Levy on the total booking fee (including accommodation charge, cleaning fees, GST and the levy itself), excluding credit card fees. Applies to stays under 28 consecutive days.
Zoning Restrictions
Councils may regulate short stays through planning and local laws; owners corporations (OCs) can ban short-stay use of lots via a special resolution (75% owner approval).
Minimum Stay
Levy applies to stays of less than 28 consecutive days (28+ days not subject to the levy and falls outside the short-stay definition).
Density Rules
Unknown statewide; left to local councils.
Insurance Required
Unknown (no statewide STR insurance mandate sourced).
Platform Obligations
Platforms (Airbnb, Stayz, Booking.com) must register for the levy and collect/remit it on all bookings made through their platform; platforms do not register individual properties. Airbnb auto-collects/remits since Jan 1, 2025.
Compliance Notes
Lodgement frequency depends on total booking fees: quarterly if $75,000+ annually, otherwise annual; if annual lodgers exceed $75,000 they must switch to quarterly. Direct bookings = host self-lodges via SRO portal.
Effective Date
Short Stay Levy Act 2024 — levy effective 1 January 2025.
Key Notes
Short stay defined as less than 28 consecutive days where guests do not live there. Existing council-specific STR charges removed once state levy took effect. Revenue funds Homes Victoria (social/affordable housing, 25% to regional Victoria).
Penalties
Unknown for specific levy penalty amounts (standard SRO non-lodgement/non-payment penalties and interest apply).
Additional Context
Victoria has ~48,000–63,000 STR properties (much of it entire homes). The Victorian Liberal opposition pledged to repeal the levy if it wins the 2026 state election. Other states/territories (Tasmania 5%, ACT 5% from July 2025) followed Victoria's model.
Sources
https://www.sro.vic.gov.au/short-stay-levy
Victorian State Revenue Office (sro.vic.gov.au, updated Jan 2026)
Parliament of Victoria
Airbnb (help/article/3819)
hostaway.com
lodgify.com
mlslegal.com.au (Jan 2026)
📋 Apply / Register with the Official Authority

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Frequently Asked Questions

Is Airbnb legal in Melbourne?

Yes, Airbnb and short-term rentals are legal in Melbourne with proper registration and permits. Lodgement frequency depends on total booking fees: quarterly if $75,000+ annually, otherwise annual; if annual lodgers exceed $75,000 they must switch to quarterly. Direct bookings = host self-lodges

Do you need a permit for Airbnb in Melbourne?

Yes. Melbourne requires the following for short-term rental operation: No statewide license; hosts/platforms responsible for the levy must register with the State Revenue Office (SRO) short stay levy system. Some local councils operate separate registration/permit schemes (distinct from SRO)..

What taxes apply to short-term rentals in Melbourne?

Short-term rental hosts in Melbourne are subject to the following tax obligations: 7.5% Short Stay Levy on the total booking fee (including accommodation charge, cleaning fees, GST and the levy itself), excluding credit card fees. Applies to stays under 28 consecutive days..

What are the penalties for illegal Airbnb hosting in Melbourne?

Hosts who operate without proper permits in Melbourne may face enforcement. Unknown for specific levy penalty amounts (standard SRO non-lodgement/non-payment penalties and interest apply)..

What are the key STR compliance requirements in Melbourne?

Short stay defined as less than 28 consecutive days where guests do not live there. Existing council-specific STR charges removed once state levy took effect. Revenue funds Homes Victoria (social/affordable housing, 25% to regional Victoria).

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