Mornington Peninsula Accommodation Sales: Does the Short Stay Levy Apply?

For owners preparing a Mornington Peninsula accommodation business for sale, Victoria’s short stay levy deserves a clear explanation in the sale documents. A buyer needs to understand the treatment of existing bookings and the assumptions behind the financial records.

A holiday house in Rye and an operating motel in Rosebud should not automatically receive the same treatment. Establish what the premises actually are, how guests book and which obligations apply before describing the business to prospective buyers.

What does Victoria’s short stay levy cover?

The State Revenue Office says the levy applies from 1 January 2025 to eligible Victorian accommodation stays shorter than 28 consecutive days, excluding the checkout day. The rate is 7.5% of the total booking fee. That fee includes the nightly charge, cleaning fees, GST and any applicable late checkout fee. Credit card fees, other payment processing charges and damage charges are excluded. State Revenue Office

Eligible accommodation can include a whole house, apartment or separately occupied residence. A stay in the owner’s or renter’s principal place of residence is excluded. However, a separately occupied granny flat on the same land can be within scope. An address alone therefore does not resolve the question. State Revenue Office

Why a motel needs a different assessment

The SRO confirms that short stay bookings in commercial residential premises are excluded. These premises include hotels, motels, inns, hostels, boarding houses, caravan parks and camping grounds. Classification depends on sole or primary use. Typical characteristics include accommodating unrelated guests simultaneously, operating commercially, providing accommodation as the main purpose and staff handling bookings, rooms and payments. State Revenue Office

For sale preparation, obtain professional confirmation where the operating structure is unclear. Do not rely solely on a property’s trading name, an online listing category or the seller’s description. A collection of holiday apartments warrants an assessment of its actual arrangements rather than a conclusion based on appearance.

Who handles the levy on bookings?

For accommodation within scope, booking platforms are responsible for registering, lodging returns and paying the levy on platform bookings. Owners or tenants accepting bookings directly must register themselves. If all bookings are through a platform, the owner or tenant does not need to register for that reason. The SRO also distinguishes quarterly lodgement where annual booking fees reach $75,000 from annual lodgement below that threshold. State Revenue Office

A seller using several booking channels should prepare a channel summary. Show which bookings were direct, which were platform bookings and where supporting statements are stored. Ask your accountant to reconcile levy amounts with the accounts so buyers can follow the figures without guessing.

Keep Shire registration separate

Mornington Peninsula Shire requires annual registration of short stay rental properties under its local law. Owners must nominate a contact who can respond to property issues within two hours, day or night, and display the Council registration number on online advertising platforms. The Shire expressly states that it does not administer or enforce the Victorian short stay levy. Local registration continues separately. Mornington Peninsula Shire

Include the relevant Council records in the sale information. Ask the Shire what updates a proposed ownership change requires. A Council registration record and an SRO tax position answer different questions; buyers should review both where relevant.

Make the sale information easy to check

Prepare a short explanatory note covering the premises classification, booking channels and accounting treatment. Flag unresolved questions for the buyer’s advisers. For bookings extending beyond settlement, have the transaction advisers agree how guest payments, refunds and responsibilities will be documented. Present verified records rather than assuming the buyer will continue every aspect of your operating model.

Choose one completed booking from each channel and assemble its confirmation, invoice, payout and accounting entry as a practical example for due diligence. This helps explain the presentation of receipts while keeping any tax interpretation with the appropriately qualified adviser.

Discuss your sale with Norton’s Resort Brokers

Selling accommodation on the Mornington Peninsula? Contact Norton’s Resort Brokers at nortons.re@gmail.com to discuss your property, business structure and sale preparation.

Disclaimer: General information only, current at 10 October 2026, not tax, accounting, legal or financial advice. Eligibility and obligations depend on individual circumstances. Obtain independent professional advice and verify current SRO and Council requirements before acting.