Support Home Property Management System Owner Accounting Short Stay Levy

Short Stay Levy

Guide on how to apply the Short Stay Levy required by the Australian Victorian Government

As of the 1st January 2025, the Australian Victorian Government is applying a 7.5% levy on reservations staying 27 nights (28 days) or less, for Owner and Trust Accounting Properties.
Reservations staying 28 Nights or longer, do not occur this levy.

Note:

This guide is for Direct Reservations and Reservations made via the RMS IBE/Book Now Button only.
This is a general guide and the examples used may differ from your setup and configuration.
These steps are not required for reservations made via an OTA (Online Travel Agent) Eg, AirBnB & Booking.com, as the OTA will manage the levies on your behalf. This includes OTAs connecting to RMS via the RMS Channel Manager.

Overview:

This guide will assist you with the best practice to action the new Short Stay Levy.

The existing Rate(s) you currently sell through your OTAs via the RMS Channel Manager, will not change and no additional channel mapping is required.

2 New Rates Types (Derived Rates), will need to be created for reservations sold Directly In-House or via the RMS IBE/Book Now Button.

One Rate Type for reservations staying 27 nights (28 days) or less, with the Levy added.
One Rate Type for reservations staying 28 nights (29 days) or more, without the Levy.

You may need to repeat these steps if you have multiple Rates that you sell In-House/Direct or via the RMS IBE/Book Now Button.

There are two parts to this guide.

Setup and Configuration. This can be done any time before the levy takes action.
Activation. This must be done at the time the levy becomes active. E.g. 1st Jan 2025

Summary Video

Part 1
Setup and Configuration

This first section will walk you through the setup and configuration components needed to apply this fee and the creation of the Derived Rates.

These steps can be configured anytime before the activation date.

GL Acc Code (Optional)

If you already have a General Ledger Account Code you wish to use for the Short Stay Levy, you can skip this step.

To Create a New General Ledger Account Code for the Short Stay Levy:

Go to Setup Menu > Accounting > GL Acc Code and select Add

Add a GL Acc Code
Add a Description
Save & Exit

All other fields are Optional.

Further information on How to Create a General Ledger Account Code can be found HERE. (Opens in new Tab)

Delete

Sundry Charge

A Sundry Charge is required to Apply and Report on the Levy.

To add this, go to:

Setup Menu > Accounting > Sundry > Add
Enter a Description
Select GL Acc Code
GST Type = GST Free
Save & Exit

Further information on Sundry Charges can be found HERE. (Opens in new tab)

Delete

Derived Rate(s) for Direct and RMS IBE/Book Now Button Bookings

If the rate(s) you sell via an OTA Do Not have a Minimum/Maximum Length of Stay (MLOS), then only 2 new rate types are required.

One for reservations staying 27 nights or less, and one for Reservations staying 28 nights or more.

The 2 New Rates can be Derived from the Rate(s) that are currently sold via an OTA. This does not affect your existing rate(s) or Channel Mapping.

If the rate(s) you sell via an OTA Do have a Minimum/Maximum Length of Stay (MLOS), then a Derived Rate will need to be created for each rate.

Derived Rate for existing rates that Do Not have a MLOS.

For reservations that are sold Directly In-House or via the RMS IBE/Book Now Button, two new Rate Types will be required.
One for reservations staying 27 nights or less, and one for reservations staying 28 nights or more.

The 2 New Rates can be Derived from the Rate(s) that are currently sold via an OTA. This does not affect your existing rate(s) or Channel Mapping.

If you only sell one rate via an OTA, then only 2 new rate types are required.

Step 1.

To create a Derived Rate, from the Side Menu:

Go to Charts > Rate/TariffManager
(Enterprise Properties will need to select a Property to Continue)
Click on the Rate/Tariff Icon
Select Rate/Tariff Types

Select Derived Rate/Tariff
Select Add Icon

Step 2.

From the Derived Rate Setup
Select the "Derived From" Rate.
This would be the rate you currently sell via an OTA and will add the Levy to for Direct and IBE Bookings.
Add a "Derived Rate/Tariff Type Description".
This is the New Rate/Tariff Type Description that the guest will see online.
Add a "Derived Rate/Tariff Charge Description".This is the New Rate/Tariff Charge Description that the guest will see on their Account, which could be different from the Rate/Tariff Type Description.
Select "Set New Min/Max Nights"

Step 3.

Go to Adjustment Amount
Select one or more Properties if required
Select '+Amount' under Adjustment 1
(No adjustment amounts are needed here)
Select 'Apply To All'

No other options are required on this screen.

Step 4.

Select Min/Max Nights
Add a Maximum of 27 nights to every night of the week
Doing this will ensure that when a reservation is made for 28 nights or longer, this rate will Not show as an Option.
Save - Do Not Exit

Choose what this Rate/Tariff Type will be Accessible to.
If unsure, select Include for All.
Save

Step 5.

Select Packages
Select the Add ' + ' icon

Select the Sundry created in the previous steps
(Optional) "Show on Account" will display this as a separate charge on the Reservation Account and will be visible to the guest. If not selected, the charge will be rolled into the accommodation charge but will still report revenue separately.
Select the Fee Structure 'Percentage of Rate'
Add the '% of Rate/Tariff'
Leave "Every > Blank > Period"
Select Starting Period 'Include'
Select Ending Period 'Exclude'
Save & Exit

Step 6.

Go Back to Derived Rate/Tariff Setup
Toggle Active to Inactive (Off) Not Green.
This will make the Rate/Tariff Inactive until it is needed.
Save & Exit

As the Rate/Tariff is "Inactive", you will not see it in the list until you Select the All or Inactive view option.

Inactive Rates/Tariffs are displayed in Gray.

This has now created the first rate and a second rate will now need to be created, but the second rate will Not have the Package component and will have a Minimum Nights stay of 28 Nights.

Step 7.

Again we start with:

Select Derived Rate/Tariff
Select Add Icon

Step 8.

From the Derived Rate Setup
Select the SAME "Derived From" Rate used to create the previous rate.
This would be the rate you currently sell via an OTA and will add the Levy to for Direct and IBE Bookings.
Add a "Derived Rate/Tariff Type Description".
This is the New Rate/Tariff Type Description that the guest will see online.
Add a "Derived Rate/Tariff Charge Description".This is the New Rate/Tariff Charge Description that the guest will see on their Account, which could be different from the Rate/Tariff Type Description.
Select "Set New Min/Max Nights"

Step 9.

Go to Adjustment Amount
Select one or more Properties if required
Select '+Amount' under Adjustment 1
(No adjustment amounts are needed here)
Select 'Apply To All'

No other options are required on this screen.

Step 10.

Select Min/Max Nights
Add a Minimum of 28 nights to every night of the week
Doing this will ensure that when a reservation is made for 28 nights or longer, only this rate will show as an Option.
Save - Do Not Exit

Choose what this Rate/Tariff Type will be Accessible to.
If unsure, select Include for All.
Save

Step 11.

Go Back to Derived Rate/Tariff Setup
Toggle Active to Inactive (Off) Not Green.
This will make the Rate/Tariff Inactive until it is needed.
Save & Exit

As the Rate/Tariff is "Inactive", you will not see it in the list until you Select the All or Inactive view option.

Inactive Rates/Tariffs are displayed in Gray.

This has now created the 2 rates in preparation for activation when needed.

Delete

Derived Rate for existing rates that Do Have a MLOS.

If you sell multiple rates via an OTA that have different Minimum/Maximum Lengths of Stay (MLOS) then a Derived Rate will need to be created for each rate.