Legal Update Alert: A New Tax for Short-Term Rentals in the ACT?
O*NO! Just when you thought you had your short-term rental game sorted, the ACT government has introduced a new law that could change how you do business. It’s called the Short-Term Rental Accommodation Levy Act 2025, and it kicks in on 1 July 2025.
If you’re a real estate agent managing or advising on short-term rentals—think Airbnb, Stayz, or any booking platform—this new law is something you need to know about. But don’t worry, we’ve broken it down into bite-sized pieces so it’s easy to understand.
Let’s dive in.
What Is the STRA Levy?
The STRA levy (short for Short-Term Rental Accommodation Levy) is a 5% tax on the total amount paid for a short-term rental booking in the ACT. This includes not just the nightly rate, but also cleaning fees, pet fees, and any other extras—basically, the whole amount the guest pays.
But here’s the kicker: this levy only applies if the booking is made through a booking service like Airbnb or Stayz. If someone books directly with the property owner (without using a platform), the levy doesn’t apply.
So, if you’re a real estate agent using a booking platform to manage short-term rentals, this law affects you.
Who Has to Pay the Levy?
The person or company that provides the booking service is responsible for paying the levy. That means if you’re managing bookings through a platform or your own booking system, you’re on the hook.
You’ll need to:
Register as a booking service provider.
Lodge quarterly returns.
Pay the levy within 30 days after the end of each quarter.
If you don’t register or pay on time, you could face penalties.
What Properties Are Affected?
The levy applies to short-term rental accommodation in the ACT that:
Is booked for 28 days or less.
Is not hosted (i.e., the owner isn’t living there at the same time).
Is not excluded accommodation.
So what’s excluded? Here’s a quick list:
Hotels, motels, and serviced apartments.
Caravan parks and camping grounds.
Hostels and boarding houses.
Student accommodation.
Retirement villages and aged care homes.
Emergency or welfare housing.
If your property falls into one of these categories, you’re off the hook—but you’ll need to provide a declaration to the booking service provider to prove it.
What Should Real Estate Agents Do Now?
If you’re managing short-term rentals in the ACT, here’s what you need to do:
Check your portfolio: Identify which properties are affected and find out if the booking service will be increasing their fees to cover the new ‘tax’.
If you provide a booking service, register as a booking service provider if you haven’t already.
Educate your clients: Let landlords know about the new levy and how it might affect their income (if the booking providers will pass the extra costs on indirectly).
Update your systems: Make sure your booking and accounting systems can track and report the levy.
Keep records: You’ll need to lodge quarterly returns and keep documentation in case of audits.
Key Takeaways
The STRA levy is a 5% tax on short-term rental bookings in the ACT starting 1 July 2025.
It applies to bookings made through booking services like Airbnb.
Booking service providers must register, report, and pay the levy quarterly.
Some types of accommodation are excluded, but you’ll need to declare them.
Penalties apply for non-compliance, so it’s important to get your ducks in a row.
YOUR NEXT STEPS
If you’re a real estate agent managing short-term rentals in the ACT, now’s the time to act: Review your listings, register with the ACT Revenue Office, talk to your clients, and set up your systems for compliance.
Need help navigating the new law or updating your agreements? Book in for your free 10 min chat - we’re here to make sure you stay compliant and confident.
Boring legal stuff: This article is general information only and cannot be regarded as legal, financial or accounting advice as it does not take into account your personal circumstances. For tailored advice, please contact us. PS - congratulations if you have read this far, you must love legal disclaimers or are a sucker for punishment.