Why Victorian Airbnb prices might be raised

Victoria may introduce a new Airbnb levy that could see consumers paying up to 7.5 per cent on their stays.

Managing director of Australian Housing and Urban Research Institute, Dr Michael Fotheringham, says the levy is a “sensible step” in fixing Victoria’s housing shortage.

“We have an absolute shortage of social housing a … shortage of rental housing, and we’ve got property taken out of those markets to go for profit,” he told Neil Mitchell.

Press PLAY to hear more about the proposed levy