Echuca Holiday Homes director Kye Andersen said the 7.5 per cent levy had been applied to all new bookings through his business this year.
However, Mr Andersen said he had not been told how the levy was supposed to be managed.
“We have had zero contact from the State Revenue Office, nor the Victorian Government, on how to administer it, account for it, and remit the funds we’re supposed to be holding on their behalf,” Mr Andersen said.
While he’s fairly confident about what the process will look like, Mr Andersen is yet to receive any official information.
“The government, as usual, has focused their time on conversing with overseas-owned online travel agents like Airbnb, booking.com, and Vrbo.”
“It’s really challenging. We’ve come through COVID and through floods, and we were hoping to have some sort of stabilised trading environment.”
Meanwhile, Mr Andersen will set aside funds from the the levy, which is applied to total booking fees on most short stay accommodation, to pass on in the future.
His business manages 52 holiday properties, 25 of which are in Victoria, and has recently seen a reduction in lead times on bookings.
During the peak summer period last year, the average booking was made 60 days in advance, but has dropped to 15 days in the same period this year, Mr Andersen said.
Smaller properties in the businesses’ portfolio have been the most affected, as they can’t be shared among a larger group, meaning the cost per person is higher.
“The holiday market is already suffering with the cost-of-living crisis,” Mr Andersen said.
“I suspect the next six to nine months is going to be particularly tough ... and I envisage that we will lose some of our portfolio.”
The short stay levy will fund Homes Victoria to build and maintain social and affordable housing, with 25 per cent of funds to be invested in regional areas.
In September, former Victorian treasurer Tim Pallas said the short stay market had reduced the amount of long-term accommodation available.
Mr Andersen said the levy was not designed with seasonal tourist towns in mind, and that his industry had been used as a scapegoat for housing issues.
“The idea of this is to solve the housing crisis. If you look at the portfolio of properties we manage, very few of them would suit the long-term rental market,” he said.
“We’re all in favour of regulating holiday homes... but a one rule applies for all of Victoria doesn’t wash. Inner-city Melbourne should be treated differently to regional towns.”
State Member for Northern Victoria Wendy Lovell said the short stay levy would hit Victorian border towns along the Murray River the hardest.
Ms Lovell said visitors would be tempted to stay at cheaper accommodation across the river, affecting tourism income in Victoria.
“This tax is just another blow to regional small businesses,” she said.
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