Is Short-Term Rental Restricted in Victoria? Local Enforcement Update
Yes. Since 1 April 2025, all unhosted short-term rentals in Victoria must be registered under the Short-Term Rental Registration Scheme, pay a 7.5 % levy on gross booking income, and comply with a 180-night cap in Greater Melbourne — with several councils imposing tighter local caps of 90 or 120 nights. Fines for non-compliance range from AUD 1,109 to AUD 55,460, and enforcement is led by Consumer Affairs Victoria, the State Revenue Office, and local councils.
1. Real Cost of Compliance
The financial impact of Victoria's short-term rental regulations goes beyond the well-publicised 7.5 % levy. Below is a breakdown of all mandatory and incidental costs for a typical host in 2025.
| Cost item | AUD (per year) | Notes |
|---|---|---|
| Registration fee (Consumer Affairs Victoria) | $64.50 | Annual, per property |
| Short-stay levy (7.5 % of gross income) | $3,375 | Based on $45,000 gross bookings |
| Planning permit (if required) | $1,200–$3,500 | One-off, council-dependent |
| Insurance upgrade (short-stay cover) | $850–$1,600 | Varies by provider |
| Fire & safety compliance | $400–$900 | Smoke alarms, extinguishers, ELV |
| Professional cleaning (per turnover) | $4,800 | $120 × 40 changeovers |
| Council registration (local overlay) | $150–$500 | e.g. Yarra, Port Phillip, Stonnington |
2. Best Areas for Short-Term Rentals in Victoria
Despite the regulatory tightening, several areas still deliver strong returns. The table below ranks the top five locations by average nightly rate, occupancy, and local regulatory climate.
| Area | Avg nightly rate (AUD) | Occupancy rate | Night cap | Council registration |
|---|---|---|---|---|
| St Kilda / Port Phillip | $245 | 68 % | 120 nights | Required ($250/yr) |
| Fitzroy / Collingwood (Yarra) | $230 | 65 % | 90 nights | Required ($320/yr) |
| Mornington Peninsula | $310 | 72 % | 180 nights (state cap) | Not required yet |
| Torquay / Surf Coast | $285 | 70 % | 180 nights (state cap) | Not required yet |
| Daylesford / Macedon Ranges | $270 | 66 % | 180 nights (state cap) | Not required yet |
Data sourced from Airbnb Resource Centre — Victoria and Stayz Owner Hub (April 2025).
3. Step-by-Step Registration Process
Every unhosted short-stay property must be registered. Here is the exact sequence required by Consumer Affairs Victoria.
- Check exemption status — Hosted stays (owner on-site) are exempt from registration but still require council compliance.
- Create a Consumer Affairs Victoria account at consumer.vic.gov.au/short-stay-register.
- Provide property details — address, property type, maximum guests, and ownership documents.
- Pay the $64.50 annual registration fee per property.
- Obtain a registration number — this must be displayed on all listings (Airbnb, Stayz, Booking.com, etc.).
- Register with the local council if a local scheme applies (e.g. Yarra, Port Phillip, Stonnington). Council registration is separate and costs $150–$500 per year.
- Apply for a planning permit if you intend to exceed the night cap or if your property is in a designated "high-impact area."
- Set up levy remittance — booking platforms will collect the 7.5 % levy automatically. If you take direct bookings, you must register with the State Revenue Office and remit quarterly.
Full guide: Consumer Affairs Victoria — Registration Guide
4. Where to Go — Key Agencies
Navigating Victoria's short-term rental rules requires dealing with multiple agencies. Below is the definitive list.
| Agency | Role | Contact |
|---|---|---|
| Consumer Affairs Victoria (CAV) | Registration scheme, compliance, consumer complaints | consumer.vic.gov.au / 1300 55 81 81 |
| State Revenue Office (SRO) | Levy collection, audit, penalty assessments | sro.vic.gov.au / 13 21 61 |
| Local council (e.g. Yarra, Port Phillip, Stonnington) | Local registration, night-cap enforcement, planning permits | Varies by council — see office addresses below |
| VCAT (Victorian Civil & Administrative Tribunal) | Dispute resolution, review of enforcement decisions | vcat.vic.gov.au / 1300 01 82 28 |
5. Safe or Not? — Legal Risks for Hosts
Operating a short-term rental in Victoria without full compliance carries significant legal risk. Enforcement has ramped up since April 2025.
- Criminal penalties: Operating without registration is a strict-liability offence. Maximum court penalty is AUD 55,460 plus a 12-month hosting ban (s. 30G, Residential Tenancies Act 1997 as amended).
- Civil liability: Neighbours or owners corporations can apply to VCAT for a compliance order. Compensation claims for nuisance have reached AUD 15,000 in recent cases (see Real Cases).
- Insurance voidance: Standard home insurance policies exclude short-term rental use. Without a specialist policy, hosts are personally liable for any damage or injury — a risk that has already resulted in AUD 2.3 million in unpaid claims since 2023 (Insurance Council of Australia data).
- Platform delisting: Airbnb and Stayz are contractually required to remove listings that lack a valid Victorian registration number. Over 1,200 listings were taken down in April 2025 alone.
Source: Victorian Legislation — Residential Tenancies Act 1997
6. How Long Does Registration Take?
Timeframes vary significantly depending on the completeness of your application and whether a planning permit is needed.
| Scenario | Processing time | Notes |
|---|---|---|
| Standard online registration (no permit needed) | 3–5 business days | ~15 min application; approval by CAV |
| Registration + council overlay | 2–3 weeks | Council checks local scheme |
| Planning permit required (e.g. exceed cap) | 4–8 weeks | Includes public notice & council assessment |
| VCAT review of refusal | 12–20 weeks | If council refuses permit |
Waiting times as reported by CAV Service Delivery Dashboard (Q1 2025).
7. Vacancy Rate & Market Data
Victoria's short-term rental market is cooling under the weight of new regulations. The state-wide vacancy rate (nights not booked) has risen from 42 % in 2024 to 52 % in mid-2025 for Greater Melbourne, according to AirDNA and internal State Revenue Office data.
| Region | Vacancy rate (2024) | Vacancy rate (2025) | Change |
|---|---|---|---|
| Greater Melbourne | 42 % | 52 % | +10 pp |
| Mornington Peninsula | 32 % | 38 % | +6 pp |
| Surf Coast (Torquay–Lorne) | 35 % | 41 % | +6 pp |
| Daylesford / Macedon | 38 % | 44 % | +6 pp |
| Regional Victoria (overall) | 40 % | 46 % | +6 pp |
Source: AirDNA — Victoria Market Review (May 2025) and SRO Short-Stay Levy Data.
8. Hospitals Near Key Short-Term Rental Areas
For hosts and guests, proximity to medical facilities is a practical consideration. Below are major hospitals in the top STR areas.
- St Kilda / Port Phillip: The Alfred Hospital (55 Commercial Road, Melbourne) — Level 1 trauma centre, 2.5 km from St Kilda.
- Fitzroy / Collingwood: St Vincent's Hospital Melbourne (41 Victoria Parade, Fitzroy) — major public hospital, within 1 km of most listings.
- Mornington Peninsula: Frankston Hospital (2 Hastings Road, Frankston) — 20 min from central Mornington; Rosebud Hospital (231 Point Nepean Road) — emergency care.
- Torquay / Surf Coast: Barwon Health — Geelong University Hospital (285 Ryrie Street, Geelong) — 20 min drive.
- Daylesford / Macedon: Daylesford District Hospital (81 Bridport Street) — urgent care; major referral to Ballarat Base Hospital.
9. Major Roads & Enforcement Zones
Enforcement of short-term rental restrictions often concentrates around specific transport corridors and neighbourhoods. The following roads and zones have been identified as high-enforcement areas by CAV's compliance unit.
- St Kilda / Port Phillip: Fitzroy Street, Acland Street, The Esplanade — 120-night cap strictly enforced; random audits since April 2025.
- Yarra (Fitzroy, Collingwood, Richmond): Brunswick Street, Smith Street, Victoria Parade — 90-night cap; council conducts quarterly compliance sweeps.
- Stonnington (Prahran, Windsor, South Yarra): Chapel Street, Greville Street, High Street — 120-night cap; planning permits required for any property with more than 2 unhosted bookings per week.
- Mornington Peninsula: Point Nepean Road, Boneo Road — no local cap yet, but council has flagged intention to introduce a 120-night limit by December 2025.
- Surf Coast: Surf Coast Highway, Bellarine Highway — state cap only; local registration expected 2026.
Enforcement data: CAV — Enforcement Update (May 2025).
10. Fine Amounts & Penalties — Complete Schedule
Penalties under Victoria's short-term rental framework are set by the Monetary Units Act 2004 and updated annually. The following table lists all applicable penalties as of 1 July 2025.
| Offence | Penalty (AUD) | Legal basis |
|---|---|---|
| Operating without registration | $11,092 (first offence) $55,460 (court penalty) |
s. 30G(2) RT Act |
| Failure to display registration number on listing | $1,109 | s. 30H(3) RT Act |
| Exceeding night cap (per excess night) | $1,109 per night | Council local law / s. 30J RT Act |
| Failure to remit short-stay levy | $5,546 + interest + 25 % late penalty | Taxation Administration Act 1997 |
| Providing false information in registration | $11,092 | s. 30K RT Act |
| Breach of VCAT compliance order | $27,730 | VCAT Act 1998 |
All penalties indexed annually. Current values at 1.0 MU = $184.30. Source: Victorian Government — Penalties and Fines.
11. Office Addresses & Contact Points
For in-person inquiries, the following offices handle short-term rental registration and enforcement.
| Agency / Council | Address | Opening hours |
|---|---|---|
| Consumer Affairs Victoria (head office) | 121 Exhibition Street, Melbourne VIC 3000 | Mon–Fri 9:00–17:00 |
| State Revenue Office | 530 Collins Street, Melbourne VIC 3000 | Mon–Fri 8:30–17:00 |
| City of Yarra (council) | 243 Rathdowne Street, Carlton VIC 3053 | Mon–Fri 8:30–17:00 |
| City of Port Phillip | 99a Carlisle Street, St Kilda VIC 3182 | Mon–Fri 8:30–17:00 |
| City of Stonnington | 311 Glenferrie Road, Malvern VIC 3144 | Mon–Fri 8:30–17:00 |
| VCAT (Melbourne) | 55 King Street, Melbourne VIC 3000 | Mon–Fri 9:00–16:30 |
Check individual websites for appointment requirements.
12. Real Cases — Enforcement Actions in 2025
Below are documented enforcement actions that illustrate how the rules are being applied on the ground.
| Case | Location | Breach | Outcome |
|---|---|---|---|
| CAV v. Smith (2025) | St Kilda | Unregistered listing, 47 excess nights | AUD 12,201 fine + 6‑month hosting ban |
| Port Phillip CC v. Nguyen | Port Melbourne | False registration declaration (claimed hosted, was unhosted) | AUD 11,092 fine + VCAT compliance order + costs of $3,400 |
| Yarra Council Enforcement (April 2025) | Fitzroy | 132 nights booked against 90-night cap | AUD 1,109 per excess night (42 nights) = AUD 46,578 total |
| SRO Audit — Direct Booking Host | Mornington Peninsula | Failure to remit levy for 18 months (direct bookings) | AUD 8,420 levy + $5,546 penalty + interest = AUD 15,210 |
| VCAT — Owners Corp v. Bell | South Yarra | Nuisance from short-term guests; excessive noise | Compliance order + AUD 8,500 compensation to neighbours |
Sources: VCAT Decisions Database; CAV Enforcement Actions.
Frequently Asked Questions
Is short-term rental restricted in Victoria in 2025?
A. Yes. Since 1 April 2025, all short-term rental properties in Victoria must be registered with the Short-Term Rental Registration Scheme. Owners pay a 7.5 % levy on gross booking income, and properties in Greater Melbourne are capped at 180 nights per year unless a local council imposes a lower cap.
What is the short-term rental levy in Victoria?
A. A 7.5 % levy applies to the gross booking income of short-term rentals. The levy is collected by booking platforms (Airbnb, Stayz, etc.) and remitted to the State Revenue Office. Hosts cannot opt out; the levy is mandatory for all unhosted short-stay bookings.
How many nights can you rent a property on Airbnb in Victoria?
A. In Greater Melbourne, unhosted short-term rentals are capped at 180 nights per calendar year. Some local councils (e.g. Yarra, Stonnington, Port Phillip) have introduced lower caps of 90 or 120 nights. Regional Victoria currently has no universal night cap, but individual council schemes may apply.
What are the fines for illegal short-term rentals in Victoria?
A. Penalties range from AUD 1,109 for failing to display a registration number up to AUD 11,092 for operating without registration. Repeat or serious breaches can attract court-imposed penalties of up to AUD 55,460 and a ban from hosting for up to 12 months.
Do short-term rental hosts need a permit in Victoria?
A. Yes. All unhosted short-stay accommodation must be registered with Consumer Affairs Victoria under the Short-Term Rental Registration Scheme. Registration costs AUD 64.50 per year. Hosted stays (where the owner lives on-site) are exempt, but must still comply with local council planning rules.
Which areas in Victoria are best for short-term rentals?
A. Top-performing areas include: 1) St Kilda & Port Phillip (beach tourism), 2) Fitzroy & Collingwood (inner-city culture), 3) Mornington Peninsula (weekend getaways), 4) Torquay & Surf Coast (surf tourism), 5) Daylesford & Macedon Ranges (wellness retreats). Each area has specific council registration and night-cap rules.
How long does it take to register a short-term rental in Victoria?
A. Online registration through Consumer Affairs Victoria takes approximately 15–20 minutes if all documents are ready. Approval is typically issued within 3–5 business days. However, if a planning permit is required (e.g. for exceeding night caps), the process can take 4–8 weeks.
What is the vacancy rate for short-term rentals in Victoria?
A. As of mid-2025, the average vacancy rate for short-term rentals in Greater Melbourne is 52 % (i.e. 48 % occupancy). In regional hotspots like the Mornington Peninsula, vacancy rates are lower at around 38 %. The state-wide average stands at approximately 47 %, reflecting a market adjusting to new regulations.
Official Resources
- Consumer Affairs Victoria — Short-Term Rentals Hub
- State Revenue Office — Short-Stay Levy
- Residential Tenancies Act 1997 (Vic) — Part 4A
- Department of Transport and Planning — Short-Stay Accommodation
- VCAT — Short-Stay Accommodation Disputes
- Airbnb — Victoria Registration Resource
- Stayz — Victoria Regulations for Owners