ARV has received many enquiries regarding the Short Stay Levy and its application to alpine properties. The Victorian Short Stay Levy, which took effect in January 2025, imposes a 7.5% levy on short stays of less than 28 consecutive days.

ARV has advocated on behalf of alpine property holders with the State Revenue Office requesting a blanket exemption of the short-stay levy, similar to what was achieved with the Vacant Residential Land Tax exemption, yet at this stage, our advocacy has been unsuccessful.

Commercial residential premises are exempt from the Short Stay Levy, and the definition of this is outlined in Item 12 of the ruling. Property owners can review this information to better understand whether this applies to their circumstances.

ARV recommends that any stakeholders who have concerns about whether this definition would apply to their business, to independently seek a private ruling Request a private ruling | State Revenue Office

ARV’s advocacy efforts to date have focused on bringing to light the below areas to assist the State Revenue Office to understand the circumstances of the alpine sector.

  • Seasonal nature: Alpine resorts operate primarily during the winter season. The short stay levy will disproportionately impact commercial revenue during this critical period, potentially making it harder for operators to sustain operations year-round.
  • Economic impact: Alpine resorts contribute significantly to the local economy, providing jobs and supporting businesses in remote areas. Exempting resorts from the levy would help maintain economic stability in these regions.
  • Tourism promotion: Exempting alpine resorts will support and encourage more tourists to visit, boosting tourism and related industries. This will also help alpine resorts maintain a competitive advantage against the international ski tourism industry.
  • Infrastructure and maintenance Costs: Alpine resorts often face higher infrastructure and maintenance costs due to their location and the need to manage snow and cold weather conditions. Exempting resorts from the levy will help offset these expenses.
  • Crown Land reservation: Alpine resorts are reserved under the Crown Land (Reserves) Act 1978. This reservation acknowledges their unique status and the need for specialised management and support, particularly in relation to primary reservation for recreation and tourism, as identified in the Alpine Resorts (Management) Act 1997.
  • Short Stay Levy intent: The intent of the short stay levy is to alleviate the long-term residential rental market failures, yet alpine resorts lack the critical social infrastructure to support year-round communities to service the long-term residential rental market. Alpine resorts are commercial tourism destinations.

Page last updated: 17/01/25