Airbnb Rules Melbourne and Victoria 2026: The Operator's Compliance Guide

The 7.5% Short Stay Levy: What Every Melbourne Host Must Know

Victoria's Short Stay Levy took effect on 1 January 2025 under the Short Stay Levy Act 2024 (Vic). The State Revenue Office administers it. Every eligible short-stay booking in Victoria is subject to this levy unless a specific exemption applies.

What the Levy Covers

The SRO defines a short stay as fewer than 28 consecutive days. The levy applies to the total booking fee, which includes any cleaning fee charged through the booking and GST. It does not apply to bookings of 28 days or more. A host's principal place of residence is excluded from the levy when the host is present during the stay, subject to current SRO guidance and conditions.

Who Collects It

The responsible party depends on how the booking is made.

• Bookings through Airbnb (and other major platforms): The platform collects and remits the levy on your behalf. You do not need to register or file for these bookings.
• Direct bookings: You are the provider. You must register with the SRO and remit the levy yourself. Platform remittance does not cover activity you accept directly.

Keep platform and direct bookings in separate workpapers. One clean platform statement does not close your direct-booking obligation.

SRO Registration: When You Must Register

Any host who accepts short-stay bookings outside a registered booking platform must register as a levy provider with the SRO. Registration is required before accepting the first direct booking. If you operate exclusively through Airbnb with no direct bookings, you do not need to register separately: the platform handles the obligation for its channel.

Lodgement Schedule

The filing frequency depends on your total booking fees from the prior financial year (both platform and direct combined):

• Under $75,000 AUD: Annual lodgement, due by 30 January.
• $75,000 AUD or above: Quarterly lodgement.

Check the current SRO lodgement calendar before each return period. The threshold and due dates may be updated; do not rely on the prior year's cadence without confirming the current instructions.

Revenue Impact: What 7.5% Does to Your Effective RevPAN

If a guest pays a total booking fee of $1,000 (room rate plus cleaning plus GST), the levy is $75. For platform bookings, Airbnb remits that $75 to the SRO on your behalf. Your net revenue is not reduced by $75 if the levy is collected on top of your nightly rate, but your pricing strategy must account for how the levy affects guest price sensitivity. A $300-per-night rate in Melbourne now carries a higher effective cost to the guest than the same rate in Brisbane (which has no state levy) or Queensland more broadly. Factor that into your comp-set analysis and rate targets.

See Airbnb rules across Australia for the national overview, including how Victoria's levy compares to other state approaches.

Victoria's Strata and Owners Corporation Rules

The state levy is only one layer. For Melbourne apartment operators, the owners corporation (OC) layer is often the more immediate constraint.

The 75% Special Resolution: How an OC Can Ban Short Stays

Under Victorian law, as confirmed by Consumer Affairs Victoria, an owners corporation can pass a rule prohibiting short-stay accommodation. The resolution requires support from at least 75% of lot owners who vote. A simple majority is not enough. The OC must follow the correct procedure for making and registering the rule.

If a prohibition is asserted against you, request the following before treating it as binding:

• The actual resolution text
• Evidence of the 75% support threshold being met
• The date the rule came into force
• Confirmation that your lot is within the scope of the rule

An unregistered rule, a rule passed with insufficient votes, or a rule applied to the wrong lot is not enforceable. Verify the record before acting on a claimed ban.

The Critical Exemption: Principal Place of Residence Hosts Cannot Be Banned

This is the most underreported point in Victorian strata compliance. Even if an OC passes a valid 75% ban on short-stay accommodation, that ban cannot be applied to a lot that is the host's principal place of residence. A host who lives in the apartment they list on Airbnb retains the right to host short stays, regardless of any OC prohibition. This is the rule confirmed by Consumer Affairs Victoria.

The practical implication: if you are a owner-occupier listing your home on Airbnb, an OC ban does not bind you. If you are an investor who does not live in the property, the ban applies once properly enacted.

Enforcement

Disputes about OC rules and short-stay prohibitions can be taken to VCAT (Victorian Civil and Administrative Tribunal). Penalties for breaching a valid OC prohibition are set under the Owners Corporations Act 2006 (Vic) and apply per breach. For current penalty amounts, see Consumer Affairs Victoria's guidance on OC enforcement.

For detailed guidance on strata rules across Australia, including how Victorian law compares to NSW body corporate rules, see Airbnb strata rules in Australia.

Council-Level Rules: What Melbourne and Surrounding Councils Add

State law and OC rules are not the only layers. Melbourne's local councils can and do add requirements on top of the state framework.

Melbourne City Council: Current Status

The City of Melbourne has not introduced a separate short-stay accommodation registration scheme or permit requirement at the council level as of mid-2026. Planning permits for short-stay use are handled through the responsible authority on a case-by-case basis depending on the property type, zoning, and proposal. If your property is in a heritage overlay or subject to a specific planning condition, obtain address-specific advice from the City of Melbourne planning team before operating.

Mornington Peninsula Shire: Mandatory Local Registration

The Mornington Peninsula Shire operates a local short-stay accommodation register. Hosts in the shire area must register and pay an annual registration fee. Operating without registration in the shire is a separate compliance failure from the state levy and the OC rules. If you hold a property in the Mornington Peninsula area, check the shire's current registration requirements and fee schedule directly with the council before listing.

The shire's approach is one of the most active at the local level in Victoria. It reflects the broader tension between high-demand tourist areas and permanent resident amenity that councils across the state are managing differently.

Victoria vs Other Australian Capitals: The Night Cap Question

No Statewide Victoria Annual Night Cap

Victoria has no statewide annual limit on the number of nights a property can be offered as short-stay accommodation. The SRO levy applies to eligible stays, but there is no cap on the count of stays per year at the state level. This distinguishes Victoria from some other jurisdictions and from some draft policy proposals that did not become law.

A Victoria Parliamentary Budget Office document has referenced a 90-day cap as a past policy proposal that was not enacted. That proposal is not current law. Do not apply it to your operations.

How Victoria Compares to NSW and Other Capitals

The NSW 180-day cap applies specifically to Greater Sydney unhosted short-term rental properties under the NSW STRA framework. It does not apply in Victoria. A Melbourne host operating an unhosted property faces no equivalent state night restriction, though OC rules and council requirements may still constrain operations in specific buildings or areas.

The Principal Residence Advantage in Victoria

The principal-place-of-residence exemption operates at two distinct levels in Victoria, and many hosts miss the second one.

At the levy level: Stays where the host is present and the property is the host's principal place of residence may be excluded from the levy under stated SRO conditions. Check current SRO guidance for the exact requirements, because the exclusion has conditions that must be met for each stay.

At the OC ban level: A valid OC short-stay prohibition cannot be applied to the host's principal place of residence. This is the stronger and more broadly useful protection. It means that an owner-occupier in a Melbourne apartment building where the OC has voted to ban short stays can continue to list their home on Airbnb. The ban binds investors who do not live in the property, not owner-occupiers.

Both exemptions depend on facts specific to each host and property. Do not assume they apply without confirming your situation against the current SRO guidance and the OC rules for your building.

The 2026 Melbourne Operator Compliance Checklist

Common Melbourne Host Mistakes (and the Fixes)

• Assuming the platform covers everything. Airbnb remits the levy for bookings made through Airbnb. If you accept one direct booking, you are responsible for that booking's levy. Fix: treat every channel separately.
• Treating a claimed OC ban as automatically binding. An OC ban is only valid if it was passed by 75% special resolution, properly registered, and applicable to your lot type. Fix: ask for the resolution record before accepting any restriction.
• Applying the NSW 180-day cap to Melbourne properties. Victoria has no statewide night cap. The NSW rule does not transfer. Fix: ignore night-cap claims for Victoria unless they come from your specific OC rules or a council policy with documented authority.
• Ignoring the principal-residence exemption. Owner-occupiers who list their home on Airbnb retain that right even in buildings where the OC has banned short stays. Fix: confirm your PPR status and cite the CAV guidance if an OC tries to ban you.
• Using last year's lodgement cadence without checking. The $75,000 threshold determines quarterly versus annual filing. Your status can change year to year. Fix: recalculate your prior-year total booking fees before each new lodgement period.

Frequently Asked Questions