Dan Andrews has introduced a new tax which is set to spread like a virus to other state governments, which in all likelihood will follow suit, with news reports suggesting that the NSW Premier Chris Minns is thinking about copying his Victorian Labor colleague by introducing an Airbnb tax.

Of course, it’s not officially known as an Airbnb tax because the slug will hit Stayz any other short-term rental players as of January 2025.

"In Victoria, there are more than 36,000 short-stay accommodation places — with almost half of these in regional Victoria. More than 29,000 of those places are entire homes," the new Victorian housing plan document states. "These are places that cannot be used for longer-term accommodation or rented out on fixed-term agreements — so it makes sense that they should provide some benefit toward the places that can."

Importantly, the 7.5% levy will apply to revenue from the short stay platforms such as Airbnb and doesn’t discriminate between full house rentals and those temporary landlords who say rent out a say a converted garage or granny flat.

For Victoria, the income from the levy would go towards Homes Victoria, to fund the construction of social and affordable housing. Not surprisingly, Airbnb isn’t happy.

The ABC has captured the US company’s reaction to the tax: “Airbnb Australia and New Zealand public policy head Michael Crosby said while his company welcomed a policy to boost housing construction, the rate of 7.5 per cent was ‘too high’ and would give hotels a ‘free kick’”.

"A rate this high could have a negative impact on the appeal of Victoria as a tourism destination, also penalising everyday Victorians seeking a local holiday when many are already grappling with the cost of living,” he said. “We believe a levy somewhere between 3-5 per cent which is in line with international policies, is appropriate."

Apart from raising revenue to build more social housing, what other effects would there be from this tax? Try these:

1. It will be inflationary, as temporary landlords will increase the price per night to help reduce the tax effect.
2. It will make holidays dearer at a time when the cost of living is hurting holiday plans for families.
3. Retirees who are earning income will feel the loss of 7.5% from their revenue from renting out a house or room.
4. Regulated accommodation providers, such as hotels and motels, will like it as it will boost business.
5. It will boost the number of properties in the long-term rental space but maybe the tax is small enough for many Airbnb and Stayz landlords to stay in the short-term rental space.

The ABC reports: “Victoria Tourism Industry Council chief executive Felicia Mariani said the tax would be ‘disastrous"’ and a ‘significant impost’ that would be worn by those travelling across regional Victoria.”

Here’s an example of the impact that the tourism boss provided.

"Let's use an example of $400 per night, on an average day of three nights," she said. "Well, that's $1,200, a 7.5 per cent tax on that is a $90 fee. That is not an insignificant fee that we're asking visitors to the state to pay."

The Victorian housing plans will also do the following:

1. All 44 of Melbourne's high-rise public housing estates will be demolished and rebuilt by 2051.
2. The backlog of 1,400 housing permit applications that had been with local councils for more than six months will be cleared ASAP.
3. Any current local council levies on short-stay rental will cease to be applicable.
4. 80 office blocks under-used because of the work-from-home will be looked at, to be converted to residential accommodation.

That final idea of making it easier for office blocks to become apartment blocks is a great idea that should be adopted across the country to speed up the supply of housing.