00:00There are more than 1100 short term rentals in the ACT and soon they may be more costly
00:08to stay in as the government seeks to impose a 5% levy on bookings which will likely be
00:14passed on to consumers.
00:15We think this will have a modest incentive for short term accommodation providers to
00:22offer more longer term rentals.
00:25But any increase to housing supply is likely to be small with the Treasurer saying the
00:30main aim behind the levy is to raise revenue and level out the playing field.
00:36There are a range of existing accommodation providers like hotels that pay a range of
00:42taxes including payroll taxes that aren't paid by short term rental providers.
00:49Airbnb says it supports fair and evidence based regulation of the sector and says it's
00:54important to get the balance right so that housing issues are addressed while not jeopardising
00:59the economic benefits that flow from short term rentals.
01:03Stays says they're concerned the levy will cause disruption and confusion for travellers
01:08and hosts arguing it's being rushed into effect without proper testing.
01:13The government committed to the levy in its most recent budget which estimated it would
01:17raise $3.8 million in its first year.
01:21The legislation is modelled on a similar 7.5% levy in Victoria.
01:26The government wants the levy to be in place from July but still needs the support of the
01:30Legislative Assembly.
01:31The Greens say it falls far short of addressing the housing crisis while the Canberra Liberals
01:36say they have serious concerns calling it a desperate revenue raising measure.
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