State Government Congestion Levy

From January 2015, the State Government will expand the Melbourne Congestion Parking Levy area in parts of Yarra, as well as the cities of Moreland, Port Phillip, Darebin and Moonee Valley.

The new charge will have significant impacts on Council off-street car parks in the Levy area, impacting business parking permits, car share bays and work zones.

Yarra City Council supports the concept of the levy as a means to encourage more sustainable transport options.

Council is advocating that at least 15% of the levy collected by the State Government be allocated back to the impacted Councils to assist them in funding the promotion, development and construction of new local sustainable transport infrastructure and services.

Find out more about the congestion levy on the State Revenue Office of Victoria's website.

Please note, the levy is not administered or collected by Council.

If you have further questions about the levy that cannot be answered using information from the State Revenue Office's website, please contact the State Revenue Office using the details at the bottom of this page.


What is the Congestion Levy 

The State Government first introduced the congestion levy into Melbourne's CBD in 2005.
The purpose of the levy is to reduce traffic congestion and encourage greater use of public transport.
The levy is an annual fee imposed on off-street parking spaces. The fee is split into two category areas and is collected by the State Government, not Councils.

The Congestion Levy in Yarra

From 1 January 2015, some property owners with off-street parking will be charged the congestion levy for the first time.
A map of the parts of Yarra where the congestion levy will apply can be viewed here.
The State Revenue Office of Victoria will write to affected property owners in October 2014 to advise them of the incoming levy to explain how it will affect them. 

Who has to pay the Congestion Levy?

According to the State Government, property owners will have to pay the congestion levy if they:

  • own premises including an office space or building that has off-street parking
  • lease Crown land that has off-street parking
  • are a car-park operator.

A number of exemptions can apply for residents with off-street parking, charities, disability parking, guest parking at apartments and hotels, visitor parking and other categories.

A list and explanation of the exemptions can be viewed here.


How much does the congestion levy cost?

For the spaces within the category 1 levy area, the current congestion levy charge (for 2014) is $1300 for each leviable parking space.
From 2015, a concessional rate of $950 will apply on each space within the category 2 levy area.

How do I pay the congestion levy?

Property owners liable for the congestion levy must register with the State Revenue Office.
You can find out how to register on the SRO's website




Further information
State Revenue Office of Victoria
13 21 61


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