The Mornington Peninsula remains one of the favourite vacation spots within Victoria and is ranked as the third-highest short-term rental market in Australia. However, 2025 brought a raft of regulatory changes that every property owner had to understand to remain compliant and profitable.
The New Victorian Short Stay Levy
The major change that has, or will, affect Mornington Peninsula property owners is the Victorian Short Stay Levy effective from 1 January 2025. The 7.5% levy will apply to all bookings less than 28 consecutive days and is calculated on total booking fees including cleaning charges and GST.
Key points about the levy:
- Automatically deducted from major platforms like Airbnb and Stayz.
- Funds are channelled towards affordable housing initiatives across Victoria
- Only bookings made and completed after January 1, 2025, apply.
- Does not apply to your primary place of residence when renting it out temporarily
- Does apply to secondary residences, granny flats and separate dwellings on your property
- You will be responsible for collecting and remitting the levy directly if you collect bookings directly through your own website or outside of major platforms. Properties generating more than $75,000 in annual booking fees will have until April 30, 2025, to register.
Mornington Peninsula Shire Registration Requirements
In addition to the state levy, there are also local law requirements imposed by the Mornington Peninsula Shire, which have been in operation since 2018. All short-term rental properties should be registered with the shire before taking in guests.
Registration essentials:
- Compulsory registration of all short-stay accommodation rentals
- Property to meet the shire’s Code of Conduct
- New owners must re-register the properties under their details.
- Registration ensures that the organisation lives up to the standards of the local community.
Code of Conduct Obligations
The Mornington Peninsula Code of Conduct puts responsibility for guest behaviour squarely with property owners. You are responsible for ensuring that your guests respect neighbouring properties and community amenities.
Your responsibilities include:
- A service contact that is on call 24×7
- Supplying contact details in writing to all adjoining neighbours
- Displaying the Code of Conduct prominently within your property
- Incorporating Code provisions into rental agreements
- Waste management through proper provision of bins
- Maintaining the property and land associated with it in good condition
- Informing guests of expected behaviour standards
- Serious breaches can lead to the immediate eviction of guests and fines for property owners. Past enforcement actions have seen owners fined up to $2,700 for multiple violations.
Financial Impact on Property Owners
These are, in fact, regulations that have a real cost consequence: 7.5% eaten into the profit margins and compliance issues that raise administrative expenses. The risks of non-compliance, however, are much higher-including heavy fines and possible cancellations of registration.
Presently, property owners are reassessing their strategies, with some now considering longer-term leases to avoid the levy, while others double down on premium guest experiences to justify the increased costs.
Staying Compliant in 2025
Success in the Mornington Peninsula’s short-term rental market requires more than just a desirable property today. You need:
- Proper registration with both the shire and Victorian authorities
- Clear communication of behaviour expectations to guests
- Professional management systems for ensuring 24/7 availability
- Accurate financial tracking for levy reporting
- Neighbour relation management: minimise complaints
The Role of Professional Management
The more complex regulations become, the more property owners make use of professional Airbnb management companies. Professional managers manage shire registration, Code of Conduct compliance, designated contact services, and levy reporting, taking away the administrative burden while maximising returns.
For property owners on the Mornington Peninsula, 2025 ushers in a new era of regulated short-term rentals. While the additional compliance may seem daunting, they’re designed to foster sustainable tourism that respects local communities. Understanding and embracing these regulations isn’t about avoiding penalties; it’s about correctly positioning your property for long-term success in one of Australia’s most desirable holiday destinations.
Need help navigating these regulations? Professional property management will assure you of full compliance and optimise your rental income in this evolving regulatory environment.
