REGULATORY GUIDE

Stay fully compliant with Victoria's short-term rental regulations. Everything you need to know about permits, taxes, and legal requirements.
Last updated:
September 3, 2025
Australia
Victoria
Victoria
REGULATORY GUIDE

Stay fully compliant with Victoria's short-term rental regulations. Everything you need to know about permits, taxes, and legal requirements.
Last updated:
September 3, 2025
Australia
Victoria
Victoria

TL;DR

Rules

How to comply

Rules, Taxes & Penalties

Upcoming Changes

FAQs

ATO: Rental income you must declare

State/council based definitions. Example: NSW STRA allows non-hosted entire homes with caps in some areas; other states differ. Check local planning rules.

Short-term lets are legal in Victoria. There is no state-wide night cap or host register, but from 1 January 2025 a 7.5% Short Stay Levy applies to paid stays of fewer than 28 nights. Owners corporations (strata) can make rules to ban short-stay use in apartment buildings (with limits for principal residences). Councils may also regulate locally (some require local registration/codes of conduct). Keep smoke alarms compliant and follow basic guest-safety guidance. Declare income to the ATO; most residential short-stays are input-taxed for GST unless you operate “commercial residential” premises.

Legality
Allowed statewide. No universal planning DA or state register; compliance is mainly via local council rules and owners-corporation law, plus the state Short Stay Levy.
Night Cap
None statewide (caps may apply only where set by a council policy or an owners-corporation rule).
STR Register
No state STR register. Check your council: some LGAs run local short-stay registers or codes (for example Mornington Peninsula). In apartment buildings, the owners corporation can adopt rules to prohibit short-stays (subject to statutory limits).
Risk
Operating against an owners-corporation ban, ignoring a council local law, or failing levy/tax obligations can lead to enforcement, fines and in apartment buildings a VCAT prohibition order.

Key Rules at a Glance

Overview of requirements, authorities, and costs for short-term rental compliance
Requirement
What you need
Authority / Link
Cost / Time

Registration / Permit

No state STR register. Check your council: some LGAs run local short-stay registers or codes (for example Mornington Peninsula). In apartment buildings, the owners corporation can adopt rules to prohibit short-stays (subject to statutory limits).

Max Nights

None statewide (caps may apply only where set by a council policy or an owners-corporation rule).

Planning / Zoning

If a planning permit is required for a specific proposal, typical non-major applications take several weeks to a few months depending on council workload and referrals.

Fee
A$
No state processing. Where a council register exists, online registration is typically quick; planning-permit timelines vary case-by-case.

Safety & Insurance

Fit and maintain smoke alarms to AS 3786, keep escape paths clear, provide basic safety information to guests and retain maintenance/testing records.

Tax

Declare profits to ATO. GST generally doesn’t apply to residential rent. 7.5% Short-stay Levy on stays under 28 nights from 1 Jan 2025 (levy based on total booking fees; platforms usually pay/submit).

Step-by-Step: How to comply

Overview of requirements, authorities, and costs for short-term rental compliance
1

There is no single state planning approval pathway for short-stays. Whether a planning permit is needed depends on the local planning scheme and how the use is characterised; many councils manage short-stays through local laws and compliance rather than planning permits. If a planning permit is required for a specific proposal, typical non-major applications take several weeks to a few months depending on council workload and referrals.

2

Apply if required. Planning application (fee ~A$). No state application fee. Some councils charge a local short-stay registration fee (e.g., Mornington Peninsula runs a mandatory register with an annual fee).

3

Declare profits to ATO. GST generally doesn’t apply to residential rent. 7.5% Short-stay Levy on stays under 28 nights from 1 Jan 2025 (levy based on total booking fees; platforms usually pay/submit).

4

Fit and maintain smoke alarms to AS 3786, keep escape paths clear, provide basic safety information to guests and retain maintenance/testing records.

Your Short-Term Rental Compliance Guide

Overview of requirements, authorities, and costs for short-term rental compliance

Enjoy hassle-free hosting with Houst

  • Income tax: include short-stay income in your ATO return.
  • GST: residential rent is input-taxed (no GST), unless you’re supplying accommodation as “commercial residential premises”.
  • Short-stay Levy: 7.5% of total booking fees (includes cleaning fees and GST where applicable), applies to stays under 28 consecutive days; principal place of residence stays are excluded; hotels/motels are excluded; platforms lodge/pay where the booking is via the platform.
  • SRO Victoria: Short-stay levy (7.5%)

    Edge Cases & Exemptions

    • Mornington Peninsula Shire: mandatory local registration and Code of Conduct with fines for breaches.• Inner-Melbourne: policy work is ongoing; councils may introduce local controls or registration.• Owners-corporation bans apply at the building level and can coexist with council rules.• If you operate as “commercial residential,” GST treatment differs (seek tax advice).

    Penalties & Enforcement

    • Apartment buildings: VCAT can fine up to $1,100 per breach, award up to $2,000 compensation and impose a prohibition order after repeated breaches.• Councils can issue infringement notices or prosecute local-law breaches.• SRO can assess levy liabilities and apply interest/penalties for under-payment.

    Apartment “party house” rules: VCAT can fine up to $1,100 per breach, award up to $2,000 compensation to affected residents, and ban a lot from short-stay use after repeated breaches.

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    ATO: Rental income you must declare

    State/council based definitions. Example: NSW STRA allows non-hosted entire homes with caps in some areas; other states differ. Check local planning rules.

    Do I need planning permission in Victoria?
    Is there a night cap or 90-day limit in Victoria?
    Do I need to register or get a permit?
    What taxes do I need to pay for short-term lets?
    What safety requirements do short-term lets need to meet in Victoria?

    Tools & Resources

    Planning Guidance
    Local Council (planning/local laws); Consumer Affairs Victoria & VCAT (owners-corporation/short-stay disputes); State Revenue Office Victoria (Short Stay Levy).
    Fire Safety Guidance
    VBA/Consumer Affairs — Smoke alarms and fire safety
    Tourist/Local Tax Guidance
    SRO Victoria: Short-stay levy (7.5%)
    National Safety Guidance
    AFAC: Basic Home Fire Safety (national)
    National Tax Guidance
    ATO: Rental income you must declare
    Regional Safety Guidance
    Fire Rescue Victoria: Home fire safety

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