An increased parking levy is set to be included in Victoria’s state budget next Tuesday. The Age reports that property owners are currently charged $950 annual per long term (all day) parking space, however this will rise to $1300 p.a and will be extended to include short term parking as well. The levy will now cover up to 60,000 CBD car spaces.
Victorian Treasurer Michael O’Brien says the additional revenue collected (amounting to around $44m) would be dedicated to public transport and road projects. This will be interesting to see as we have not been able to obtain details specific activities funded by the levy in prior years.
The government has spun this announcement as “less than a dollar a day” increase, but in reality it represents a 37% hike, which owners claim will be passed on directly to the consumer.
The $1300 per year is well short of the $2160 charged to businesses in Sydney, an amount that was effectively doubled by former NSW Premier Nathan Rees in 2010. As we have previously reported a parking levy is also on the cards for property owners in South Australia, effectively leaving Queensland and Tasmania as the only states that do not charge a parking levy.
Car parking levies in CBDs are touted by governments as a congestion controlling measure, however cynics say it is a pure and simple tax grab.