Recent changes to the Congestion Levy Act 2005 (Vic) (CLA) have the potential to impose significant new costs upon property owners with off street parking spaces. Affected landowners must register car parks by 21 January 2015. There are a number of exemptions that can be claimed under the CLA.

The CLA imposes an annual levy on off street parking spaces within the defined levy area. The levy does not apply to residential car parks, however, car parking for businesses in the levy area does potentially attract the levy. The CLA was recently amended to expand the area to which the levy applies. The new levy area encompasses:

  • North – Carlton, Fitzroy, Collingwood, Parkville, Carlton North, Fitzroy North, Princess Hill, North Melbourne and residential West Melbourne
  • East – Abbotsford
  • South – South Melbourne, Port Melbourne, Albert Park and St Kilda
  • West – commercial West Melbourne and Kensington

The levy in the expanded area, known as the category 2 levy area, becomes payable from 1 January 2015.

Land owners with car parks within the category 2 levy area are required to register with the State Revenue Office (SRO) by 21 January 2015, or face a potential penalty.

In the category 2 levy area, car parks will be levied at the rate of $950 per car space.

Under the CLA, there are a number of exemptions, including for parking for visitors and loading bays, councils and charities, shift workers, emergency vehicles, special events, disabled parking and fleet vehicles.

Holding Redlich has acted for land owners and can provide advice in relation to registration, applications for exemptions, and appeals against decisions made by the SRO.

This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.