Parking Australia urges the Victorian Government to reconsider its proposed congestion levy increase, calling for measures that prioritise meaningful congestion relief over revenue raising.

The Association stands with members and key stakeholders - including the cities of Melbourne, Stonnington, and Yarra, as well as the Property Council - in expressing serious concern that the proposed levy is a blunt revenue-raising tool, not a targeted congestion solution.

“For years, we have advocated for smarter, more equitable approaches to congestion management. This levy unfairly targets parking providers including local councils while ignoring the broader causes of congestion.” - Jeremy Irvine, CEO of Parking Australia.

Opportunity for targeted, effective policy

• Around 43 percent of car trips entering Melbourne’s CBD are through-trips, yet the levy does nothing to address this significant contributor to congestion.
• The levy applies regardless of whether a parking space is occupied, effectively taxing non-congestion.
• The Government has not extended funding to all affected councils, including Stonnington and Yarra, despite recommendations from Infrastructure Victoria.

Consider evidence-based reform

• Infrastructure Victoria’s recent 30-year strategy reinforces what has been known for decades: congestion requires a multifaceted response. Their report warns that by 2030, traffic delays could cost Victoria over $14 billion annually in lost time, vehicle wear, and pollution.
• Their report recommends a suite of options, including:

“Introduce road charges that help manage congestion and improve productivity. Consider options such as car parking levies, off-peak freeway tolls, congestion pricing trials, or road user charging for all motorists with lowered fixed road charges.”

• And, while the Government compares the levy proposal to Sydney’s system, it omits key differences. Most notably, Victoria’s levy applies even when spaces are vacant, making it harsher and less targeted than its New South Wales counterpart.

A call to the Upper House

• As the Upper House considers the State Taxation Further Amendment Bill 2025, Parking Australia urges Legislative Council members to vote against the proposed levy increase, or amend the legislation to remove the increase entirely

• Passing this bill in its current form will raise revenue, but it will not reduce congestion. A comprehensive, evidence-based strategy is needed - one that supports commuters, local councils, and the efficient movement of people and goods.

A way forward

Parking Australia remains committed to working with government, councils, and industry to develop practical, fair, and effective solutions to congestion. We call on the Government to: 

• Re-engage with independent expert advice
• Fund all impacted councils equitably
• Pursue a holistic congestion strategy

“No one initiative on its own will reduce congestion. We need a package of measures.” (Rob Hulls, introducing the original levy legislation in 2005) 

Two decades later, that insight remains more relevant than ever.