INTELLIREAL
Property in City of Melbourne, VIC

Local Council Rules

Airbnb & Short-Term Rental Rules in City of Melbourne 2026

VICLast updated: 2026-03-15

Can I Airbnb in City of Melbourne?

YES, with conditions

Yes, with conditions: registration required, 7.5% short-stay levy collected by booking platforms.

Check rules for a specific address in City of Melbourne

Short-Term Rental Regulations

Victoria State Rules

Registration: Mandatory — Short Stay Victoria Register
Night cap: No state-wide cap
Levy: 7.5% short-stay levy applies on all bookings
Legislation: Short-Stay Accommodation Act 2018 (Vic)
Code of conduct: Mandatory
  • No state-wide night cap — councils may impose limits via planning overlays
  • 7.5% short-stay levy collected by platforms (effective 2025)
  • Mandatory registration on the Short Stay Victoria Register
  • Owners corporations can apply to VCAT to restrict problem properties
  • Building and safety standards apply to all short-stay accommodation

City of Melbourne Council Rules

Registration: Required — the Short Stay Victoria Register
Night cap: No council cap
Permit required: No — No planning permit required for short-stay in most residential zones. Owners corporation can apply to VCAT if there are amenity issues.
Levy: 7.5% short-stay levy collected by booking platforms
Max penalty: $11,000 per offence
Fire compliance: Required (smoke alarms, extinguisher, evacuation plan)

Strata Restrictions

Owners corporations can apply to VCAT to ban a specific lot from short-stay if repeated breaches of rules occur. Many CBD apartment buildings have informal bans enforced through OC rules.

Dual Income / Secondary Dwelling

Allowed
Max floor area: 60 sqm
Min lot size: 300 sqm
Approval pathway: Building permit (no planning permit needed for small second dwelling under VicSmart)
Est. build cost: $160,000 - $270,000
Applicable zones:
GRZ General Residential ZoneNRZ Neighbourhood Residential Zone
  • Victoria calls them 'dependent person's units' or 'secondary dwellings'
  • Must be on the same lot as the existing dwelling
  • Cannot be separately titled
  • Must meet ResCode standards (setbacks, overshadowing, overlooking)
  • Inner-city lots are often too small

Key Zoning Information

Zone CodeZone NameSTR PermittedDual Income
GRZGeneral Residential ZoneYesYes
MUZMixed Use ZoneYesNo
C1ZCommercial 1 ZoneYesNo

Frequently Asked Questions

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