Melbourne CBD drivers hit with parking levy increase

The Victorian state government has significantly expanded and increased its levy on car parks in Melbourne’s CBD.

The levy has increased 37% from $950 per year to $1300 per year and will now include short-term parking-bays for the first time.

The levy previously only applied to long-term or all-day parking slots.

Residential, hospital, disabled and charity parking spaces are exempt from the levy.

It now covers an estimated 60,000 parking spaces.

The changes should increase revenue from the tax from $46.8 million in the 2013 financial year to about $91 million in the 2014 financial year.

The government said it will fund further investment in public transport infrastructure.

“The Coalition Government has already announced more than $300 million of new investment in public transport projects in this year’s Budget,” treasuer Michael O’Brien said.

“We can only afford to invest in new trains, level crossing upgrades and new stations through responsible economic management."

Car park operators have said they will pass on the fee to customers but Victorian state treasurer Michael O'Brien says  it would be the equivalent of less than $1 a day extra per space.

Sydney’s parking levy is $2160 per year per space, the result of a 2009 budget decision by the Nathan Rees Labour Government which doubled the then levy from $950 to to $2000 a year. 

The NSW  Government levy is charged to car-park owners for every off-street space within the central business district, Milsons Point and North Sydney that is not used for residential purposes.

The Victorian levy was introduced by the Steve Bracks government in 2005 to discourage driving into the city. The Coalition, then in opposition, describing it as a "flat-out tax grab".

Tony Crabb from Savills, told the The Australian Financial Review the changes would not deter commercial property construction in Melbourne, but it was unwelcome.

“Every time the budget is under a bit of strain you go back to commercial property?.?.?.?it’s very cynical,” he said.