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Short-Stay Revenue must be invested on Peninsula

The Victorian Government has released it's Housing Statement 2024-2034, which includes details about a short stay levy which will significantly impact the Mornington Peninsula.

The Short Stay Tax will be set at 7.5 per cent of the shortstay accommodation platforms’ revenue, and the revenue raised following the Levy will go to Homes Victoria. Regional Victoria will receive 25 per cent of funds from the Short Stay Levy.

This new tax will significantly impact our tourism and hospitality sectors, increasing stays on the Peninsula by around $42 a night. This will do nothing to improve local housing opportunities, but it will disincentivise overnight visitors.

The Mornington Peninsula will generate significant revenue for the Victorian Government under this new tax, so it is vital that funding is reinvested in housing in our region. Reports suggest that this figure could be more than $10 million, so it would be expected that the government would reinvest that back into our community.

The Government’s Housing Statement identifies Frankston as an activity centre where additional homes will need to be built. Given the Peninsula will be doing the heavy lifting under this levy, Frankston and the Mornington Peninsula must receive its fair share of housing over the coming decade.

Housing affordability and rental stress remain key issues in our region, and these issues will not be solved by the Government taxing peninsula holidaymakers and spending it on inner city housing. If the contribution from the State Government's Big Build program is anything to go by, we are concerned this program will also deliver next to no significant funding for housing on the Peninsula. 

The Committee calls on the Victorian Government and Homes Victoria to work collaboratively with industry, local government and community organisations - to ensure our region receives its fair share of funding for housing over the next decade.