Calculate short stay levy in VIC

[Angela4229]

I’m wondering how to calculate my pay out after the Australia VIC government short stay levy comes into effect. I as a host, choose to pay the service fee.
A: (booking fee-service fee)x92.5% 

or B: booking fee(including cleaning fee)x (100%-7.5%-16.5%Service fee)

Which one is right? Or none of them right?

[Paula]

Hello @Angela4229, that's a great question!

Thank you for bringing this topic to our community.

I thought that two of our most experienced hosts could shed some light on this: @Laurelle3 or @Jeff89, would you like to share your thoughts with Angela?

Thank you, everyone!

[Aukje0]

The levy is calculated over your price, cleaning cost etc, then abb adds their service fee, and then the levy is calculated-0 which you have to pay. 

Basically, the levy is calculated over the price the guest pays. 

I think I have it correct if I calculate; 

(your total price(stay + fees)  x 1.165 ) guest price x .075 = service levy. 

This will influence your total income, so you need to raise your prices slightly to compensate- I have had a huge session with chat GPT to calculate what the break even point is.  It comes down to roughly adding 10% to your base price and fees, to still earn the same. Only if that is your goal of course. 

[Frances3408]

@Aukje0. Hi Aukje. I think you are right. Its the way many other countries ended up with their "double VAT" taxes.

I'm in NSW so obviously watching how this plays out. Do you know whether VIC motels who are listed on Airbnb will pay this as well? Here in NSW they get exempted from needing an STRA number (commercial license) so I am wondering if thats how AIrbnb is going to identify them to not levy their revenue? Or do you think everyone in VIC with AIrbnb will be charged? It does complicate the pricing comparisons and break evens. 

Are you getting the choice to pay it yourself or will it be auto deducted?