Peak hotels industry body Accommodation Australia (AA) is calling on the NSW Government to follow Victoria’s lead by excluding hotels from any potential short-term rental accommodation levy aimed at easing the on-going housing crisis.

This week, in a submission to the inquiry, accommodation platforms Airbnb and Stayz asked that any new levy be applied to all accommodation providers, including hotels.

The Victorian Government recently excluded hotels from a similar levy, due to come into effect from 2025.

Accommodation Australia CEO, Michael Johnson, said that regulated accommodation providers like hotels should be exempt from any potential levy as they provide thousands of jobs and play no role in the current housing crisis.

“AA has made its position on the introduction of such a levy clear in its own submission into the government’s review of short-term rental accommodation (STRA),” Johnson said.

“Accommodation hotels do not contribute to the removal of housing stock from the long-term rental market and, therefore, should not be levied with a tax to address rising rental costs.”

Johnson noted that hotels and regulated commercial accommodation providers already comply with a range of compliance costs such as increased land tax, payroll tax, Workcover levies and insurances, staff wages, food safety, fire safety and building compliance such as disability access and egress.

“By contrast, other types of short-term rental accommodation have very little regulatory costs and the number of properties taken out of the rental market just keeps rising – particularly in regional areas where it is a real problem for our potential hotel workers to find their own accommodation,” he said.

Accommodation Australia NSW General Manager, Stacey McBride, said there is “no evidence to suggest accommodation hotels place meaningful pressure on the broader housing market or the long-term rental price”.

“To put it simply, to bring in a new levy upon hotels would be both unfounded and unfair,” she said.

“It would make NSW less attractive for major events and conferences organisers. Why give the other states and territories a competitive edge – for once, NSW should follow Victoria’s lead.”