Australia’s first widespread levy on short-stay accommodation and the redevelopment of 44 monolithic public housing towers have been announced by the Victorian government as part of an overhaul of policy.
The 7.5% levy on platforms such as Airbnb and Stayz, announced by the premier, Daniel Andrews, on Wednesday, is expected to raise about $70m annually to fund social and affordable housing.
Andrews described the levy, which he expected to come into effect in 2025, as “modest” and refused to compare it with other fees charged in other countries. It is only lower than a 14% lodging tax charged to short-stays in Los Angeles.
The statement also includes an ambitious plan to redevelop Melbourne’s public housing towers, which were designed and built post-second world war and have provided the backbone to Victoria’s public housing system for the past 60 years.
Andrews said the ageing towers no longer meet the standards Victorians have come to expect.
“Our 44 high rise towers are old, they are out of date, they are crumbling. They need to go,” he told reporters.
“In what is undoubtedly the biggest urban renewal project in our state’s history – and potentially our nation’s history – all 44 of those towers will go, they will be replaced by 2051.”
Andrews said the Carlton, Flemington and North Melbourne towers would be the first to be redeveloped, with department staff and translators door-knocking residents to inform them of the plans on Wednesday.
He said the development would see the amount of social housing across the sites increase by 10% – with some of the land to also be used for private apartments.
“These sites are so well located and they can be home to so many more people,” Andrews said.
The state government will also sell and develop “surplus land” across 45 sites, which is expected to deliver at least 9,000 new homes, while about 80 underused office buildings will be assessed to see if they can be converted into residential properties.
As previously reported by Guardian Australia, the housing statement also strengthens protections for renters by making rent bidding an offence and banning landlords from raising rents for 12 months after asking the previous tenant to vacate.
It also moves to bypass councils for major projects, which will speed up the approvals process from up to two years to four months.
Under the plan, planning applications for developments valued at over $50m in Melbourne and $15m in regional Victoria will be assessed by the government’s development facilitation program rather than by local governments, provided they include at least 10% affordable housing.
Once a project is approved by the development facilitation program, third parties will be unable to appeal against the decision, which will prevent costly battles with councils and resident groups in the Victorian Civil and Administrative Tribunal (Vcat).
“Ultimately, the community wants actual results. They want houses to live in. They don’t want processes, where perfect becomes the enemy of the good, where this constant search for 100% approval means you get nothing done. That’s not an answer,” Andrews said.
The government estimates that initiative will bring 13,200 homes to market that would have been delayed. The housing statement suggests up to 800,000 new homes will be built in the next decade, increasing to 2.2m by 2051.
Ahead of the announcement, the planning minister, Sonya Kilkenny, announced the approval of five developments that would each contribute hundreds of homes when complete. The largest is the rezoning of the former Kingswood Golf Course at Dingley Village, which is expected to include about 800 new homes.
