‘Common-sense approach’: AA welcomes decision to exempt Victorian hotels from controversial ‘bed tax’

Victoria’s accommodation providers are breathing a sigh of relief following a government announcement on Wednesday that its proposed controversial ‘bed tax’ will not apply to hotels and pubs offering accommodation.

Accommodation Australia (AA) has welcomed the announcement saying that regulated accommodation providers will not be targeted by the Short Stay Levy.

“Not including hotels and pubs in the short stay levy is a common-sense approach,” said Accommodation Australia (Vic) General Manager, Dougal Hollis.

“Hotels are huge employers and are a key part of any vibrant city. Victoria has led Australia’s new hotel development boom since 2020, with almost 9,000 new hotel rooms now available across Melbourne alone.

“Offering commercial accommodation comes with significant regulatory requirements and related costs and we are still recovering from the pandemic. We appreciate the government has taken this into account when shaping these policy settings.”

AA had adopted a targeted approach to inform key industry and government stakeholders of the concerns of members around the proposed levy.

AA National CEO Michael Johnson said the move will enable Victorian commercial accommodation providers to remain competitive against other states and territories.

“It will also provide investors with the confidence and certainty they need to encourage future development of new hotel accommodation infrastructure across Victoria,” Johnson said.