Tax hike could almost double the cost of parking – if it passes

3 hours ago 3

Support for the Allan government’s plan to dramatically hike car parking levies is crumbling, with key crossbenchers threatening to block the bill they have labelled “another big tax grab”.

Car park operators are warning rents would soar up to 90 per cent under the tax hike, which is set to start in January, and Queen Victoria Market traders say it would deliver the final blow to the struggling Melbourne institution.

Queen Victoria Market traders - Fahna Ammett, Frank Fontana and Rose Ansaldo - say the government’s car park levy hike would spell the death of the market.

With only five sitting weeks remaining before the tax hike is due to take effect, the legislation needed to enact the controversial levy is yet to be introduced to parliament, despite the government already banking $220 million from the tax in its forward estimates.

The changes would implement a 73 per cent increase on the CBD congestion levy on private and public car park operators from next year, and also expand the existing levy to inner-city suburbs.

Queen Victoria Market fresh produce worker Fahna Ammett said the market was already on its knees and feared the Melbourne institution would not survive the tax hike.

“My guess would be that in 20 years, we will be driving past going, ‘hey, remember when they used to be a fresh produce section in that market’,” she said.

Frank Fontana, who operates the Fontana Brothers stall, said the majority of produce customers travelled between 20km to 30km to come to the market and most relied on their cars to shop.

The Allan government is expected to introduce the bill in the coming weeks, and, assuming the opposition votes against it, would need the support of the Greens and two other crossbenchers in the upper house.

Rachel Payne, one of the two Legalise Cannabis MPs often holding the deciding votes for government legislation, voiced concern over the proposal, labelling it “another big tax grab”.

She said the party was yet to be briefed on the bill, but she was concerned it was another cost that would be passed on to key workers.

“All I can think of is this is going to have a huge impact on people who work in the city and no longer have affordable and accessible car parking – hospital workers, cleaners, those on King Street,” she said.

“The city is not 9-5 – it’s a 24-hour city, and public transport is not always a safe option.”

Libertarian MP David Limbrick has also voiced his opposition to the bill, while Animal Justice Party MP Georgie Purcell said it would be up to the government to explain why the increased tax was justified.

Greens leader Ellen Sandell said the party supported initiatives to reduce pollution and congestion, but these also need to be coupled with more investment in alternative transport options.

Under the proposed changes, the levy on category 1 areas, which include Melbourne CBD, Southbank, King’s Domain, Docklands and East Melbourne, would go up from $1690 to $3030. The category 2 zone would be expanded to include inner-eastern suburbs along Hoddle Street and Punt Road that are not currently subject to the levy. They include areas in Richmond, Prahran and South Yarra.

Accounting for current vacancy rates of about 20 to 30 per cent, the 73 per cent levy increase would force property owners to increase car park rents by 90 per cent in category 2. These increases could then be passed on to drivers.

James English, director of Ace Parking Group, which has car parks in Southbank, a zone affected by the increase, said the tax hike would hit businesses, workers and commuters already struggling with the cost of living.

“We’re extremely concerned about this continued attack on parking and our customers. The congestion levy doesn’t hit those driving through the city, it targets the people who park, the very people who keep Melbourne moving. It’s inequitable, and it’s having a real impact on the cost of parking for everyday workers and businesses,” he said.

Property Council Victoria chief executive Cath Evans said the tax hike would force shoppers to go elsewhere and thousands of shift workers would bear the brunt of the government’s “tax grab”.

“Let’s be clear – this tax will not reduce congestion. It does not target through-traffic, one of the main causes of city congestion. Instead, the cost will be passed on to individual drivers,” she said.

“Off-street parking is heavily used by the essential workers who keep Melbourne running. Driving is, for many people, undoubtedly safer than catching public transport at odd hours of the morning or night. This policy disregards worker safety.

“The government says they’re on the side of families, but for many parents, especially those managing school pick-ups and drop-offs, driving is not a luxury – it’s a necessity.”

Property Council analysis of the proposed tax increase found that businesses would be required to absorb an extra $13, plus GST, per day per parking space.

The state government was contacted for comment.

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