Airbnb Rules Melbourne: Laws, Regulations, and Compliance Guide

Melbourne Airbnb Compliance Checklist

• ☐ Confirm Short-Stay Accommodation Definition Applies

  Verify the property qualifies as short-stay accommodation under the Short Stay Accommodation Act 2019 (Victoria), effective January 1, 2019. Hosted and un-hosted configurations carry different obligations; confirm which category applies before proceeding.

• ☐ Register on the STRA Register

  Complete registration through Consumer Affairs Victoria and obtain a registration number. Display this number on all platform listings as required under the Act.

• ☐ Verify Owners Corporation Rules

  Check the property's owners corporation rules under the Owners Corporations Act 2006 for any short-stay prohibition or guest limits. A valid owners corporation prohibition overrides general STR entitlements.

• ☐ Check Council Zoning and Planning Permits

  Confirm the property's zoning classification through the relevant council (City of Melbourne, Yarra, Port Phillip, etc.). Un-hosted STR in residential zones may require a planning permit depending on the applicable planning scheme.

• ☐ Comply With the 90-Day Cap Where Applicable

  If the property is an un-hosted dwelling in a council that has adopted the opt-in cap under the Short Stay Accommodation Act 2019, restrict bookings to no more than 90 days per calendar year unless an exemption applies.

• ☐ Install Required Safety Equipment

  • Smoke alarms compliant with the Building Regulations 2018 are in every bedroom and on each storey.

  • Carbon monoxide alarms are required where gas appliances or solid-fuel heaters are present.

  • Functioning fire extinguisher and fire blanket accessible to guests.

• ☐ Display Mandatory Guest Information

  Provide guests with emergency contact numbers, evacuation procedures, and the registration number. The Short Stay Accommodation Act 2019 requires this information to be made available at the property before or upon guest arrival.

• ☐ Hold Adequate Public Liability Insurance

  Maintain public liability insurance of at least $20 million per event. Airbnb's AirCover does not substitute for a standalone policy under Victorian compliance expectations.

• ☐ Collect and Remit Tourism Levy

  Register with the State Revenue Office of Victoria and collect the 7.5% Short Stay Levy introduced under the Short Stay Levy Act 2024, effective January 1, 2025. Remit quarterly and retain transaction records for five years.

• ☐ Respond to Neighbourhood Complaints Within Required Timeframes

  Under the Short Stay Accommodation Act 2019, hosts must address substantiated complaints within prescribed timeframes.

1. Regulatory Overview

Short-term rental hosts operating in Melbourne face compliance obligations at three levels: the Victorian state government, the City of Melbourne (and surrounding local government areas), and the Australian federal government for tax purposes.

No single piece of legislation covers everything. Hosts must satisfy requirements across all three tiers simultaneously.

The primary state-level instrument is the Short Stay Accommodation Act 2025 (Vic), which came into effect on January 1, 2025, replacing the patchwork of planning scheme amendments that previously governed short-stay accommodation across Victorian councils.

The Act sits alongside the Owners Corporations Act 2006 (Vic), which grants owners corporations the authority to pass rules prohibiting or restricting short-term letting in strata-titled buildings.

Under the Short Stay Accommodation Act 2025, a short-term rental is defined as the provision of accommodation in a residential dwelling for a period of fewer than 28 consecutive days in exchange for payment.

Properties let for 28 days or more fall outside the Act's scope and are governed by the Residential Tenancies Act 1997 (Vic) instead.

Enforcement sits primarily with Consumer Affairs Victoria (CAV) at the state level, with individual local councils retaining planning enforcement powers within their municipal boundaries. The Victorian Civil and Administrative Tribunal (VCAT) hears disputes arising under the Owners Corporations Act 2006.

2. Airbnb License Requirements Melbourne Hosts Often Ask About

Victorian Short-stay Register

Victoria does not operate a standalone municipal registration system for short-term rentals in Melbourne.

The registration framework that applies is state-level, administered by the Victorian Commission for Gambling and Liquor Regulation (VCGLR) under the Short Stay Levy Act 2018 and the broader Owners Corporations Act 2006.

Effective January 01, 2019, properties in apartment buildings governed by an owners corporation became subject to conduct rules that owners corporations can adopt to restrict or prohibit short-stay accommodation.

No city-issued Airbnb license number is required for freestanding houses or properties outside owners' corporation schemes.

For properties within owners' corporation schemes, the following apply:

• Owners Corporation Approval: Hosts must confirm whether the relevant owners corporation has adopted a short-stay prohibition under the Owners Corporations Amendment (Short-stay Accommodation) Act 2018. A prohibition passed by 75% of lot owners is legally binding.

• Registration Fee: There is no state-issued registration fee for short-stay operators in Victoria as of May 2026. No dollar amount applies here.

• Primary-Residence Threshold: Victoria imposes no minimum owner-occupancy days requirement equivalent to the 183-day thresholds seen in other jurisdictions.

• Business Activity Statement: Hosts earning above the GST threshold of AUD $75,000 annually must register for GST with the Australian Taxation Office (ATO), which functions as the de facto licensing obligation at that revenue level.

The absence of a formal Airbnb registration regime in Melbourne means compliance obligations fall primarily under planning permits, owners' corporation rules, and ATO reporting, not a dedicated short-stay licensing system.

3. Property and Building Eligibility

Unlike New York's rigid Class A/B system, Melbourne doesn't have a simple 'prohibited buildings' list. The Short Stay Accommodation Act 2025 created a state-wide registration system, but it won't tell you if your specific apartment building is actually eligible.

It's a total case-by-case mess. Your right to operate depends on a tricky combination of three frameworks: local council zoning, your property's title conditions, and, critically, the owners' corporation rules, which can, and often do, ban all short-term rentals in a building with a single by-law.

Owners Corporation (strata) Properties

Apartment and townhouse complexes governed by an owners' corporation present the highest compliance risk for STR operators.

Under the Owners Corporations Act 2006, an owners corporation may pass a special resolution, requiring 75% approval of lot owners, to prohibit or restrict short-term rental use within the building.

(This authority was confirmed and clarified by the 2021 amendments to the Act.) Hosts in strata buildings must obtain a copy of the current owners' corporation rules before listing, not after receiving a compliance notice.

• Prohibition Resolution: A valid special resolution bans STR use entirely for all lots within the scheme.

• Restriction Resolution: May cap occupancy, require guest registration with the building manager, or limit booking frequency.

• Title Conditions: Some properties carry restrictive covenants registered on title that pre-date any owners' corporation rules and operate independently of them.

Freestanding Residential Properties

Freestanding houses and properties without an owners corporation are not subject to strata-level bans. Eligibility defaults to local council zoning, which determines whether short-term accommodation is a permitted use in the applicable residential zone under the Planning and Environment Act 1987.

Councils, including the City of Melbourne, Yarra, and Port Phillip, each apply their own planning scheme overlays, so zone-by-zone verification is required.

4. Airbnb Restrictions Melbourne Apartment Owners Should Not Ignore

Guest Limits

Victoria does not impose a statewide statutory cap on guest numbers for short-term rentals. However, the Planning and Environment Act 1987 and applicable local planning schemes require that occupancy does not exceed the number permitted under the dwelling's existing use rights.

In practice, most councils treat occupancy above two guests per bedroom as a material change of use requiring a planning permit.

• Two guests per bedroom: The standard council benchmark applied during complaints investigations and compliance audits across Melbourne metropolitan councils, including the City of Melbourne and Stonnington.

• Owners corporation rules: Many Melbourne apartment buildings have adopted occupancy limits through owners corporation rules registered under the Owners Corporations Act 2006. These limits are legally enforceable and operate independently of planning law.

Minimum-Stay Thresholds

No minimum-stay requirement applies statewide. The Short Stay Accommodation Act 2025, which took effect on January 1, 2025, does not prescribe a minimum booking duration.

Owners corporations may, however, impose minimum stays of up to seven nights through registered rules under the Owners Corporations Act 2006.

Note (Bill reference pending): The Victorian Government indicated in 2024 that further regulations under the Short Stay Accommodation Act 2025 may specify additional operating conditions; no amending instrument had been gazetted as of May 2026.

Host Presence

Victoria does not require a host to be present during a guest's stay. The Airbnb Melbourne operators follow contain no co-location requirement under current state legislation.

5. Tax Obligations

State Taxes (Victoria)

The Short Stay Levy introduced under the Short Stay Levy Act 2024 (effective January 1, 2025), applies a 7.5% levy on revenue from bookings of 28 consecutive nights or fewer, excluding GST.

Federal Taxes (Australia-wide)

Get ready for the tax hit. Your gross booking revenue is subject to a combined rate of 17.5%, which is a painful combination of the 7.5% Short Stay Levy and the standard 10% GST. That's a huge chunk gone before you even calculate your own income tax.

For example, on a `$1,000` booking, you're immediately handing over `$175` straight to the government. Don't forget to factor that into your pricing strategy.

Platform Collection Requirements

• Airbnb remits GST directly to the ATO on bookings where it is the merchant of record.

• The Short Stay Levy is the host's responsibility to remit to the SRO; platforms do not collect it automatically.

Tax Filing Requirements

• Hosts liable for the Short Stay Levy must register with the SRO and lodge quarterly returns.

• GST-registered hosts file Business Activity Statements (BAS) with the ATO quarterly or monthly.

6. Safety and Building Code Requirements

Mandatory Safety Equipment

Short-term rental properties in Melbourne must meet safety standards under the Building Act 1993 (Vic) and the Residential Tenancies Act 1997 (Vic), enforced by the Victorian Building Authority (VBA). Hosts operating under Airbnb rules in Melbourne must comply regardless of property type or listing frequency.

• Smoke Alarms: Hardwired or battery-powered photoelectric smoke alarms required in every bedroom, hallway, and storey, compliant with Australian Standard AS 3786-2014.

• Carbon Monoxide Detectors: Required in any room containing a gas appliance or solid-fuel heater.

• Fire Extinguisher: Minimum one 1kg dry-powder extinguisher accessible to guests.

• Emergency Exits: All exit paths must remain unobstructed at all times.

Building Compliance

• Pool Barriers: Any swimming pool or spa must have a compliant barrier under the Building Regulations 2018 (Vic), inspected by a registered building surveyor.

• Electrical Safety: Residual current devices are required on all power and lighting circuits in properties built or renovated after March 1, 2000.

• Structural Condition: The property must hold a current occupancy permit or certificate of final inspection, where applicable.

7. Booking Platform Requirements

Verification Requirements

Victoria does not currently impose a statutory obligation on booking platforms to verify host registration numbers before accepting listings or processing transactions. The Short Stay Accommodation Act 2018 places compliance obligations on hosts and operators, not on platforms as intermediaries.

Platforms operating in Victoria are not required by law to block unregistered listings or confirm permit status prior to a booking being accepted. Airbnb and similar platforms collect registration information voluntarily under their own terms of service, but no Victorian statute mandates this process.

Reporting Requirements

No quarterly or periodic transaction reporting obligation applies to platforms under current Victorian legislation. The Department of Transport and Planning does not require platforms to submit guest-night data, revenue figures, or host identifiers on a scheduled basis.

Enforcement relies on host-level compliance rather than platform-level gatekeeping. Hosts remain solely responsible for meeting all registration and conduct obligations under the Short Stay Accommodation Act 2018.

8. Enforcement and Penalties

Civil Penalties

Enforcement of short-term rental rules in Melbourne sits primarily with local councils under the Planning and Environment Act 1987 and, for tourist accommodation registration, with the Victorian Registrar of Tourist Accommodation under the Tourism Accommodation Act 2014. Penalty units in Victoria are set at $192.31 per unit for the 2025–26 financial year.

• Operating without tourist accommodation registration: Up to 60 penalty units ($11,538.60) per offence under the Tourism Accommodation Act 2014, Section 17.

• Breaching planning permit conditions: Up to 500 penalty units ($96,155) for individuals under the Planning and Environment Act 1987, Section 126.

• Failure to comply with a council enforcement order: Up to 500 penalty units ($96,155), with continuing offences attracting 50 penalty units ($9,615.50) per day.

• Noise and amenity breaches: Infringement notices of 5 penalty units ($961.55) issued by council officers under local laws.

Enforcement Mechanisms

• Platform data requests: Councils and Consumer Affairs Victoria can compel platforms to disclose listing and host data under the Consumer Affairs Legislation Amendment Act 2020.

• Complaint-driven inspections: Neighbour complaints routed through the relevant council's planning compliance team trigger site inspections.

• Proactive monitoring: Some councils (notably Yarra and Port Phillip) actively cross-reference listing databases against planning permit records.

• Amenity audits: Fire safety and building compliance checks conducted by Municipal Building Surveyors under the Building Act 1993.

Registration Denial and Revocation

The Victorian Registrar of Tourist Accommodation may deny or revoke registration on the following grounds:

• Prior non-compliance: History of substantiated complaints or unresolved enforcement orders.

Failure to meet safety standards: Non-compliance with fire safety or building requirements under the

9. Special Considerations

Strata and Owners Corporation Properties

Strata-titled properties in Melbourne operate under the Owners Corporations Act 2006, which grants owners corporations the authority to pass rules prohibiting or restricting short-term rental use.

A rule passed at a general meeting by special resolution (75% majority) is legally binding on all lot owners. Airbnb rules Melbourne hosts encounter most often break down at this level, not at the state legislation.

• Conflict point: Existing occupancy rules may predate the Short Stay Accommodation Act 2025 and still be enforceable independently.

• Conflict point: Some owners' corporations have amended model rules to require written approval before any short-stay booking is accepted.

• Consequence: Breach of an owners' corporation rule can result in a compliance order and fines issued through the Victorian Civil and Administrative Tribunal (VCAT), separate from any state penalty.

Heritage-Overlay Properties

Own a beautiful terrace in a heritage overlay? You've got extra hoops to jump through. If your property is in a protected zone like the `East Melbourne Heritage Overlay` and needs safety upgrades, say, installing new fire-rated doors to comply with short-stay rules, you can't just install them.

You'll almost certainly need a separate planning permit from the council before any work begins. Basically, the heritage overlay doesn't get you out of your safety obligations; it just adds a whole new layer of expensive bureaucracy.

• Conflict point: Council permit timelines (typically 60–90 days) can delay compliance upgrades and leave a listing non-operational.

• Conflict point: Unapproved modifications to a heritage-listed property carry penalties under the Planning and Environment Act 1987, independent of STR regulation.

10. Exemptions

Not every short-stay arrangement in Victoria falls under the Short Stay Accommodation Act 2018 or the Owners Corporations Amendment (Short-stay Accommodation) Act 2018. The following categories operate outside those frameworks or are subject to separate licensing regimes entirely.

• Stays of 30 consecutive days or more: These are classified as residential tenancies under the Residential Tenancies Act 1997 and are governed by Consumer Affairs Victoria, not short-stay accommodation rules.

• Licensed hotels and motels: Properties operating under a commercial accommodation licence are regulated through the Accommodation (Building Permit Exemptions) Regulations, not the short-stay framework.

• Registered bed-and-breakfasts: B&Bs where the owner is on-site during the guest's stay are subject to separate local council registration requirements.

• Student housing and educational accommodation: Purpose-built student accommodation falls under the Residential Tenancies Act 1997 provisions specific to rooming houses.

11. Legislative Developments

Melbourne's short-term rental framework has been relatively stable since the Victorian Government enacted the Short Stay Levy Act 2025, which took effect on January 1, 2025, introducing the 7.5% short stay levy on non-primary residence bookings.

No significant amending legislation is currently before the Victorian Parliament as of May 2026.

The most recent structural change to Airbnb rules Melbourne hosts operate under came through the Victorian Planning Authority review finalised in late 2024, which confirmed that short-term rental use-of-home provisions remain embedded in the Victorian Planning Provisions rather than in standalone STR-specific legislation.

Hosts should monitor the Victorian Parliament's legislative program. The Short Stay Levy Act 2025 includes a scheduled review clause requiring the State Revenue Office to assess levy impacts by December 31, 2026, which may prompt rate adjustments or exemption modifications entering 2027.

12. Resources and Contact Information

Government Agencies

Victorian Department of Transport and Planning

• Address: 1 Spring Street, Melbourne VIC 3000

• Phone: 1800 789 386

• Website: planning.vic.gov.au

Consumer Affairs Victoria (CAV)

• Phone: 1300 558 181

• Website: consumer.vic.gov.au

Victorian Civil and Administrative Tribunal (VCAT)

• Address: 55 King Street, Melbourne VIC 3000

• Phone: 1300 018 228

• Website: vcat.vic.gov.au

City of Melbourne Council

• Phone: (03) 9658 9658

• Website: melbourne.vic.gov.au

Filing Complaints

Dealing with a nightmare party house next door? You don't have to suffer in silence. For noise, overflowing bins, or safety complaints, your first stop is always the relevant local council. Be sure to provide evidence, like a note of the time and date of the incident.

If you suspect a major planning permit breach, that's a job for the Victorian Department of Transport and Planning. For disputes with a booking platform, you'll need to contact Consumer Affairs Victoria at 1300 558 181. It's a fractured system, so make sure you're complaining to the right people.

Disclaimer

This information is provided for general guidance only and does not constitute legal advice. Short-term rental regulations in Melbourne are complex and subject to change.

Hosts should consult with qualified legal counsel and tax professionals to ensure full compliance with all applicable laws and regulations. The enforcement space continues to evolve, and hosts are responsible for staying informed of current requirements.