Host cancelling a reservation

[Macy5170]

We have a booking for our property in late December/early January (10 nights) 

We have just received an invoice from the State Revenue Office (Victoria/Aust) for a new tax introduced by our current state government (Vacant Residential Land Tax)  The fee is $6750.  This is on top of our Land Tax fees which have jumped from $800 to $2500.  We now find it is not financially viable to keep this property as a holiday rental and will return to full time renting. 

I therefore need to cancel the reservation for Dec/Jan.  I feel very bad for the guests as it is the Xmas holidays but we are left with no choice and our property will be removed from Airbnb listing straight away.  

Will I be hit with cancellation fees by Airbnb?

[Helen3]

You can speak to Airbnb but I would presume so. @Macy5170 

[Joan2709 · Accepted solution]

@Macy5170 

Agree with @Helen3 in that you should speak to Airbnb ASAP. Most probably they will assess fines for the cancellation and those increase the longer you wait. The minimum fine is $50 per cancellation. That increases to a percentage of the booking total the closer you cancel to check-in date. 

Host Cancellation Policies

https://www.airbnb.com/help/article/990