Tasmania's House of Assembly approved a five percent [1] short-stay accommodation levy on Thursday, May 8, 2026.
The legislation marks the fulfillment of a 2024 election promise by the Tasmanian Liberal government. By taxing short-term rentals, the state aims to generate new revenue to fund public initiatives, including stamp-duty relief for first-home buyers [4].
The bill passed the lower house with a vote of 22-9 [2]. Treasurer Eric Abetz (Liberal) said the measure received support from the Liberal party, the Greens, and members of the crossbench [1]. The Labor party was the only major political group to oppose the bill [1].
While the five percent [1] rate was approved, the process involved competing visions for the tax. Some Labor members pushed for a higher alternative levy of 7.5 percent [3]. Additionally, members of the crossbench attempted to pass a motion to earmark the resulting funds specifically for homelessness services and crisis accommodation [4]. That motion failed, leaving the revenue destined for the government's broader financial goals [4].
Under the new rules, the levy will not apply to homeowners who rent out individual rooms in their primary residence [1]. This exemption distinguishes casual room-sharing from professional short-stay operations.
The bill now moves toward the next stage of the legislative process. The government said the levy will balance the tourism economy with the needs of local residents seeking permanent housing [4].
“The legislation passed a 5 percent levy.”
This levy represents a strategic shift by the Tasmanian government to monetize the growth of short-term rental platforms. By exempting homeowners renting single rooms while taxing dedicated short-stay properties, the government is attempting to curb the impact of tourism on the long-term rental market while simultaneously funding housing affordability measures for first-time buyers.
