Property in Mornington Peninsula Shire, VIC

Local Council Rules

Airbnb & Short-Term Rental Rules in Mornington Peninsula Shire 2026

VICLast updated: 2026-03-15

Can I Airbnb in Mornington Peninsula Shire?

YES, with conditions

Yes, with conditions: 7.5% short stay levy on stays under 28 consecutive days (from 1 jan 2025). council also requires local registration., planning permit may be required.

Check rules for a specific address in Mornington Peninsula Shire

Short-Term Rental Regulations

Victoria State Rules

Registration: Not required — No statewide short-stay register — the 7.5% Short Stay Levy is administered by the State Revenue Office
Night cap: No state-wide cap
Levy: 7.5% Short Stay Levy on stays under 28 consecutive days (from 1 Jan 2025); the checkout day is not counted
Legislation: Short Stay Levy Act 2024 (Vic)
Code of conduct: Mandatory
  • No state-wide night cap in Victoria
  • 7.5% Short Stay Levy from 1 January 2025, on stays under 28 consecutive days (checkout day not counted), collected via booking platforms / the State Revenue Office
  • The operative instrument is the Short Stay Levy Act 2024 — there is no separate statewide short-stay accommodation register or licensing act in Victoria
  • An owners corporation can ban short-stay letting in a lot by 75% special resolution — but this cannot apply to a lot used as a principal place of residence
  • Building and safety standards apply to all short-stay accommodation

Mornington Peninsula Shire Council Rules

Registration: Not required
Night cap: No council cap
Permit required: Yes — Planning permit may be required for short-stay accommodation in some zones. Council has introduced specific controls in high-demand areas like Sorrento and Portsea.
Levy: 7.5% Short Stay Levy on stays under 28 consecutive days (from 1 Jan 2025). Council also requires local registration.
Max penalty: $11,000 per offence
Fire compliance: Required (smoke alarms, extinguisher, evacuation plan)

Strata Restrictions

Less strata in the peninsula (mostly houses). Holiday houses are a long-standing tradition in the area.

Dual Income / Secondary Dwelling

Allowed
Max floor area: 60 sqm
Min lot size: 300 sqm
Approval pathway: Building permit or planning permit depending on zone
Est. build cost: $140,000 - $240,000
Applicable zones:
GRZ General Residential ZoneLDRZ Low Density Residential Zone
  • Larger lots on the peninsula offer good granny flat opportunities
  • Some areas are in bushfire-prone zones requiring BAL assessment
  • Green Wedge zones have specific restrictions
  • Popular for holiday rentals — granny flat can serve as secondary rental

Key Zoning Information

Zone CodeZone NameSTR PermittedDual Income
GRZGeneral Residential ZoneYesYes
LDRZLow Density Residential ZoneYesYes
GWZGreen Wedge ZoneNoNo

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