The government has yet to decide on the future of a bed tax for Queenstown.

The proposed fee would be a 5 percent charge applied to all short-term accommodation in the resort town.

More than 80 percent of residents voted in favour of a bed tax in a non-binding referendum earlier this year.

But the levy needs to be supported and signed off by the government before it can be implemented.

The Queenstown Lakes District Council confirmed the proposed visitor levy is currently with Cabinet.

A spokesperson said the council would make a decision on its next steps when the government confirmed whether it would back a tax.

If carried through, the Queenstown Lakes District would be the second region to implement a regional visitor tax after Stewart Island in 2013.