The Liberals and Nationals will oppose the Allan Labor Government's new Holiday and Tourism Tax, which will harm the tourism industry and cost Victorians more for accommodation.
Scheduled to come into effect on 1 January 2025, Labor's new tax will add a 7.5 per cent charge to bookings, increasing the cost of every short-stay accommodation booking.
However, new survey data released today shows the tax will not achieve its aim of shifting short-stay accommodation onto the long-term rental market.
The survey, commissioned bythe Australian and NZ Short Term Rentals Accommodation Association (ASTRA) and the Victorian Tourism Industry Council (VTIC), conducted by New Focus Research, shows as few as one per cent of short-stay property owners will shift properties to the long-term rental market once the tax comes into effect.
Furthermore, more than half of respondents to guest surveyssaid they would reduce how often they travel and how much they spend, with coastal and regional areas most impacted.
Shadow Treasurer, Brad Rowswell, said: "This latest Labor tax – their 55th new or increased tax since coming to office - is simply a cash grab to prop up the budget and record debt from a government that is addicted to taxes.
"This tax will also disproportionately impact those travelling with disabilities or other special needs where commercial accommodation may not be suitable, as well as short-stay workers in medical and related fields."
Shadow Minister for Tourism, Sport and Events, Sam Groth, said: "Labor's Holiday and Tourism Tax will not ease the housing crisis but will harm the tourism industry.
"Every dollar spent on Labor's new tax is one less dollar being put into tourism businesses which support the economy and jobs across Victoria.
"Labor cannot manage money, and Victorians are paying the price."
