The Allan Labor Government’s controversial 7.5 per cent Holiday and Tourism Tax is completely stupid and would hurt communities right across regional Victoria, the Nationals’ Member for Northern Victoria Gaelle Broad said today.
Ms Broad said the proposed tax would directly impact tourism operators and there would be a destructive flow on effect to businesses, workers, tourists and communities.
“This tax is an absolute mess. It’s completely stupid,” Ms Broad said.
The tax passed the Labor-controlled Legislative Assembly late on Thursday.
“The Liberals and Nationals strongly oppose this tax and will continue to fight against it in the Legislative Council.”
The Short Stay Levy would apply to all bookings made from 1 January 2025, increasing the cost of short stay accommodation bookings, including farmhouse stays, Airbnb rentals, and other crucial accommodation options for tourists in regional Victoria.
“The negative impact on small business will flow on to regional areas. Short stay accommodation provides valuable employment for locals in areas such as cleaning, gardening and general property maintenance.
“If there are less tourists, there are less people to spend their money in the local bakeries, butchers, supermarkets and petrol stations. The list goes on.
“This will also affect families and people with disabilities, whose choice of affordable, accessible holiday accommodation is already very limited.”
Ms Broad said the introduction of the tax on January 1 – halfway through the financial year – would cause major problems in itself.
“This is peak holiday season in Victoria when businesses are already flat out. There has been no consultation with industry. They are just lumping it onto them and expecting them to collect this extra tax without the time to put the necessary systems in place.”
Ms Broad said key details of the tax were unclear.
“I question whether the government is able to apply this tax, or will it be a repeat of last year when they tried to impose an unconstitutional tax on electric vehicles and had to repay the money with interest?
“The tax may raise up to $60 million in revenue but given we will soon be paying $1 million per hour on Labor’s debt, their annual return on this tax will equate to about 60 hours of interest.
“I understand this is the highest tax of its kind in the world
“The Government says this tax is needed to build more homes, but going on their recent record, they’ve been demolishing homes not building them.
“We already have such high taxes on property and Labor’s policies are contributing to the housing crisis. This tax is a desperate attempt to find more revenue as they have driven our state into such massive debt.
“It will actually be cheaper for people to holiday in NSW than Victoria.
“Our tourism industry has already been kicked hard by COVID 19 shutdowns and this will compound the pain for our regional communities even more.
“Labor can’t manage money and – yet again – regional Victorians are paying the price.”
Media Contact: Linda Barrow 0484 303 764 linda.barrow@parliament.vic.gov.au
