Designated accommodation tax rate rises to 3% and both expiry dates extended to 2031

Plain-language summary · AI-assisted

Two changes have been made to the Designated Accommodation Area Tax Regulation. First, the accommodation tax rate for the area covered by Schedule 2.1 item 1 is increasing from 2% to 3%. Second, two expiry dates that had been set for 2026 are both being pushed out to May 1, 2031 — one relating to a designated accommodation area listed in Schedule 1 (item 23.1), and the other being the end date for the higher rate in Schedule 2.1. Operators collecting accommodation tax in the affected designated area will need to update their systems and remittances to reflect the higher 3% rate. Businesses and platforms that handle short-term accommodation bookings in this area should review their tax collection processes to ensure they are charging and remitting the correct rate.

Who this affects
short-term accommodation operators · hotel and motel operators · vacation rental platforms · accommodation tax collectors in the designated area