Congestion Levy Act 2005 (Victoria) — Zoe

Victoria act

Congestion Levy Act 2005

In ForceVIC

Jurisdiction

Victoria

Collection

act

Plain English Summary

7/10 complexity

What this law does, in plain terms

Mechanically, the Act charges an annual levy on each "leviable parking space" located inside a defined levy area in and around central Melbourne (the "levy area") (see s.8, s.3 and Schedule 1). The owner of the premises is primarily liable. For public car parks, the operator is jointly and severally liable with the owner (s.9(1)–(2)).
The dollar amount of the levy for each parking space is set by the Act's table for particular years and thereafter is adjusted each year by a consumer price index formula (the "CPI adjusted levy") (s.10, s.11). The Commissioner must publish the CPI adjusted levy on a website by 1 December before the levy year (s.12).

Who pays and when

Owners pay the levy for each leviable parking space (s.9(1)). Operators of public car parks share liability and may be assessed (s.9(2), s.13(3)). Assessment occurs on the basis of ownership or operation as at 1 January of the levy year, and covers spaces that existed as leviable parking spaces at any time in the previous year (s.13(1)–(3)).
If an agreement exists under which a person uses a parking space in a private car park, that user must pay the owner the levy amount (and any GST on it) unless the parties later agree otherwise (s.34(2)–(8)). The Act also provides an indemnity rule between owner and operator of public car parks depending on which party has the contractual right to set fees (s.33A).

Exemptions and reduced liabilities (who does not pay or pays less)

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What it does

The Congestion Levy Act 2005 imposes an annual, per-space statutory charge on parking spaces located in a defined inner-Melbourne levy area, and creates a statutory framework for assessment, registration, exemptions, concessions, recovery and enforcement. The operative imposition is expressed in section 8, which states the Act "imposes a levy each year in respect of each leviable parking space". Liability rules allocate primary liability to the owner of the premises, with owners and operators of public car parks jointly and severally liable (s 9(1)-(2)). For private car parks the user who occupies a space under an agreement must pay the owner, who remains liable to the Commissioner (s 34(2)-(4)).

The amount of the levy for each levy year is set out in the table at section 10, as amended, with transitional amounts and a mechanism for annual indexation by reference to the consumer price index described in section 11. The Commissioner must publish the CPI-adjusted levy for each category on an appropriate website on or before 1 December in the previous year (s 12). The Act distinguishes two spatial categories in the levy area, the category 1 levy area and the category 2 levy area, as described in Schedule 1, and the levy amount may differ between those categories (s 3(1), Sch 1, s 10 Table).

The Act sets out substantive exemptions and concessions in Part 4. A parking space that meets an exemption in Part 4 is not leviable; concessions reduce the levy payable for part-year circumstances (ss 17-24, 25-26A). The Commissioner assesses liability under the timing rule in section 13, which assesses owners and public car-park operators on the basis of spaces that existed as leviable parking spaces at any time in the previous year.

Administrative and enforcement features include registration obligations for owners and operators (Part 5, ss 27-30), an annual return obligation (s 31), and provision that an unpaid levy is a charge on land (s 32) with a statutory certificate procedure for registration with the Registrar of Titles (s 33). Section 33A imposes a statutory indemnity regime between owners and operators in public car parks where only one party sets fees, and section 34 allows owners to recover levy amounts from contractual users subject to specified limits. The Act is to be read together with the Taxation Administration Act 1997, which provides the administering, assessment, objection and enforcement machinery (s 6).

Current sections

Direct links to the current provisions in Congestion Levy Act 2005.

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Main concepts

The Act defines a compact set of statutory concepts that determine the scope and incidence of the levy. The statutory starting point is the "parking space" definition in s 3(1), which includes both spaces set aside for parking and spaces used for parking, whether permanently delineated or not, but excludes carriageways open to the public and spaces used exclusively for residential parking. The Act treats undelineated parking areas by reference to area, with section 5 directing that undelineated spaces are to be counted by dividing the total area occupied by such spaces by 25.2 square metres and disregarding any remainder, and that those spaces are added to any individually delineated spaces (s 5(1)-(2)).

"Leviable parking space" is a term of art meaning a parking space in a car park that is not an "exempt parking space" (s 3(1)). The Act therefore separates the universe of parking spaces from the subset subject to levy, with Part 4 listing categories of exempt parking spaces, such as visitor parking, loading bays, spaces used exclusively by consular posts or emergency services, spaces owned by specified public or charitable bodies where no charge is made, disabled parking, certain fleet garaging and bus layovers, and specified event or zoo/park car parks (ss 17-24, 20A). The definitions also create an important distinction between "private car park" and "public car park" (s 3(1)), with different registration and concession rules applying to each (Parts 5 and 4 Div 2).

Temporal assessment is governed by section 13, which directs that an owner on 1 January in a year is to be assessed for that year on each space that existed as a leviable parking space at any time in the previous year. The operator of a public car park on 1 January is similarly assessed in relation to spaces that existed as leviable parking spaces at any time in the previous year (s 13(1)-(3)). Schedule 2 contains special provisions for assessment of the 2015 levy in the category 2 levy area, demonstrating that the Act allows discrete transitional arrangements (Sch 2).

The levy amount is a core technical concept. Section 10 sets the table of amounts per parking space by levy year and by category, and section 11 prescribes the CPI adjustment formula and rounding conventions. The CPI-adjusted levy is computed from the previous levy by reference to a summed series of consumer price index numbers for Melbourne in original terms, as defined in s 11(3), rounded to $10 (s 11(1)-(3)). Section 12 requires publication of the CPI adjusted levy on an appropriate website, and the provisions on calculation and publication are mandatory administrative steps.

Administrative concepts include "owner", which includes freehold holders and lessees or licensees of Crown land where relevant (s 3(1)), the "operator" of a public car park, the Commissioner's registration role (ss 27-29), notice and return timings (ss 27-31), and the registration of a charge on land where a levy is unpaid (ss 32-33). The indemnity rule in s 33A and the contractual recovery obligation in s 34 introduce private-law mechanisms into the statutory regime. Finally, the Act must be read together with the Taxation Administration Act 1997, which supplies core tax administration procedures (s 6).

Who it affects

The Act creates legal obligations and economic effects that fall on several distinct groups. The primary payers are owners of premises that contain leviable parking spaces. Section 9(1) makes the owner liable to pay the levy on leviable parking spaces on the premises. The Act defines "owner" expansively to include freehold holders and, where premises are on Crown land, the lessee or licensee if the Crown has granted a lease or licence (s 3(1) def. of owner).

Operators of public car parks are secondarily and expressly made jointly and severally liable with the owner for the levy imposed on leviable parking spaces in a public car park (s 9(2)). This joint and several liability creates direct exposure for operators who manage spaces on behalf of owners. The Act also requires registration of owners and operators (ss 27-29) and imposes notification obligations when ownership or operator status changes (s 30).

Users of private car parks who occupy leviable spaces under an agreement with the owner are exposed contractually. Section 34(2) requires a person who uses a leviable parking space under an agreement to pay the owner the amount of the levy and any GST on that amount, subject to proportional reduction for part-year use (s 34(3)). The owner remains liable to the Commissioner, but section 34(6) permits the owner to recover unpaid amounts as a debt in court.

Municipal councils are affected indirectly by the Act through section 34B, which requires the Minister to enter memoranda of understanding with municipal councils whose municipal district includes any land in the levy area, relating to an annual allocation to the council for active transport or other transport initiatives. The Act therefore channels funds or at least mandates discussions about allocations with local governments.

Certain entities are explicitly insulated or treated differently. The Crown is bound by the Act so far as legislative power permits, but the Act provides that nothing in it makes the Crown in any capacity liable to be prosecuted for an offence (s 7(1)-(2)). Various classes of parking spaces are exempt, which excludes their owners from levy incidence, for example parking on premises owned by municipal councils, hospitals, universities and certain charitable bodies where no charge is made (s 18). Consular parking spaces and Government school parking spaces are also expressly exempt (ss 18A, 18AA). Emergency vehicle, disabled parking and certain event or park/zoo car parks are exempt under Part 4.

Developers, landlords and lessees with long-stay arrangements are affected by the counting and assessment rules. The Act counts non-delineated spaces by area (s 5), assesses owners for spaces that existed at any time in the previous year (s 13), and contains special transitional and amendment-driven rules that affect particular levy years and areas (Sch 2, s 41, s 40). Finally, registered operators and owners face monetary penalties for non-compliance with registration and notification duties and administrative exposure through the registration of charges on land for unpaid levies (ss 27-33).

Key duties and rights

The Act allocates a set of statutory duties to owners, operators and the Commissioner, and creates certain statutory rights and remedies for those parties.

Owner and operator duties

Pay the levy. Section 8 imposes the levy and section 9 allocates liability to the owner, with operators of public car parks jointly and severally liable (s 9(1)-(2)). The Commissioner will assess liability under the timing rule in s 13.
Register and notify. Owners and operators have registration obligations under Part 5. Owners of private car parks must apply for registration in specified timeframes (s 27), and owners and operators of public car parks must apply (s 28). A person who ceases to be an owner or an operator must notify the Commissioner within one month (s 30).
Lodge returns. A person liable to pay the levy must lodge an annual return on or before 21 January in the year (s 31(1)). In the case of a public car park with both an owner and operator, the return must be lodged jointly (s 31(2)).
Keep accurate counts and estimates. Section 5 prescribes the method of counting undelineated spaces and Schedule 2 requires estimates in particular transitional circumstances for 2015.

Contractual and recovery rights and duties

Recover from users. Section 34(2)-(6) requires users under agreements to pay the owner the levy and any GST, and permits the owner to recover unpaid amounts as a debt. Payment by users must occur at or before the time the owner is required to pay the levy (s 34(4)). The owner must provide a copy of the notice of assessment on request (s 34(5)).
Indemnity between owner and operator. Section 33A creates a statutory indemnity where a management arrangement gives only one party the ability to set fees. If the lease/license provides that only the owner may set fees, the owner must indemnify the operator for the levy, and vice versa. This indemnity prevails despite lease terms unless the parties expressly agree that s 33A will not apply (s 33A(2)-(4)).

Commissioner duties and powers

Publish CPI-adjusted levy. Section 12 requires the Commissioner to publish the CPI adjusted levy for each levy year on an appropriate website on or before 1 December in the previous year. Section 11 prescribes the calculation, indexation and rounding method.
Maintain register; register charges. The Commissioner must register applicants for registration (s 29(1)), may remove or amend registrations (s 29(2)), and may register a charge on land by lodging a certificate with the Registrar of Titles in respect of unpaid levies (s 33(1)-(2)). The Commissioner may request removal of the charge on payment (s 33(3)).
Determine forms and information. Applications and returns must be in the form and contain the information determined by the Commissioner (ss 27(3), 28(4), 31(3)).

Statutory rights and protections

Owners and operators have a right to the administrative procedures afforded by the Taxation Administration Act 1997 because the Congestion Levy Act is to be read together with the Taxation Administration Act, which provides enforcement, objection and reassessment mechanisms (s 6).
Owners have the right to request a copy of the notice of assessment for recovery purposes (s 34(5)).
The Act protects some parties from prosecution; the Crown cannot be prosecuted under this Act (s 7(2)).

Timing and calculation duties

The assessment rule in s 13 locks in the relevant population of spaces by reference to existence at any time in the prior year. Owners and operators therefore have a duty to identify spaces for the previous year in order to compute levy exposure.
The CPI methodology and rounding conventions in s 11 must be applied to compute the yearly levy, and the Commissioner must publish the result by the deadline in s 12.

These duties interact with contract law and property law via s 34 recovery rights and ss 32-33 charging powers. The indemnity in s 33A can override lease terms unless the parties expressly opt out, creating a statutory backstop that parties must address in documentation.

Penalties and enforcement

The Act provides a combination of monetary penalties for registration and notification offences, tax-administration enforcement through the Taxation Administration Act 1997, property-based enforcement through registration of charges on title, and ordinary civil recovery routes.

Monetary penalty units and registration/notification offences

Failure to register. The owner of a private car park who does not apply for registration as required faces a penalty of 60 penalty units (s 27(1) note and penalty line). The owner of a public car park and the operator of a public car park similarly face 60 penalty units for failure to apply as required (s 28(1)-(2) penalty lines).
Failure to notify change. A person who ceases to be the owner of a car park, or ceases to be the operator of a public car park, or an owner whose premises cease to be a car park, must notify the Commissioner within one month, or face 60 penalty units (s 30(1)-(3)).

Tax administration enforcement

The Act is to be read together with the Taxation Administration Act 1997, which supplies assessment, collection, objection, review and recovery mechanisms (s 6). The Commissioner’s ability to assess and reassess levies, to issue notices of assessment, and to pursue collection and penalties is therefore exercised within the Taxation Administration Act framework. The schedule notes that the Commissioner may make reassessments (Sch 2 note).

Property-based enforcement

Levy as a charge on land. An unpaid levy is a charge on the land on which the leviable parking space was situated (s 32). This creates a security interest in favour of the Commissioner over the land in respect of unpaid levies.
Registration of charge on title. The Commissioner may register a charge on land by depositing a certificate with the Registrar of Titles describing the land charged and stating the unpaid levy (s 33(1)). The Registrar must make a recording (s 33(2)), and on payment the Commissioner may request removal or recording of discharge, which the Registrar must comply with (s 33(3)-(4)). This creates a mechanism for priority and notice in the land title system.

Recovery by owners from users and civil enforcement

Contractual recovery. Where a person uses a leviable parking space under an agreement with an owner, that person must pay the owner the levy and any GST (s 34(2)). If the user does not pay, the owner may recover the amount as a debt in court (s 34(6)). Owners therefore have a civil enforcement route against contractual users, subject to the limits in s 34(7) (see "Gotchas").

Indemnity enforcement between owner and operator

Section 33A imposes statutory indemnity obligations between owner and operator where only one party may set fees. This indemnity is enforceable as a statutory obligation and takes effect despite the terms of a lease, licence or other arrangement unless the parties expressly agree that s 33A will not apply (s 33A(4)).

Limitations on criminal prosecution

Crown protection. The Act binds the Crown but explicitly provides that it does not make the Crown liable to be prosecuted for an offence (s 7(2)). This limits criminal enforcement against the Crown, while other enforcement mechanisms remain available where the Crown is within the legislature’s power.

Administrative obligations and timing that affect enforcement

Publication duties feed enforcement. The Commissioner must publish the CPI adjusted levy by 1 December in the previous year (s 12). Missed publication does not affect the operation of the CPI calculation (s 12(2)), but late publication may affect the taxpayer’s ability to calculate liability ahead of assessment dates.
Registration and return deadlines. Returns must be lodged by 21 January (s 31(1)); failure to meet statutory deadlines exposes parties to penalty units and administrative follow-up under the Taxation Administration Act.

In short, enforcement blends tax-administration powers, property registration, civil debt recovery, statutory indemnities, and penalty-unit offences tied to registration and notification duties.

How it interacts with other laws

The Act deliberately cross-references and operates alongside a range of other statutes, creating both substantive interdependencies and administrative linkages.

Tax administration framework

Taxation Administration Act 1997. Section 6 directs that the Congestion Levy Act is to be read together with the Taxation Administration Act 1997, which "provides for the administration and enforcement of this Act and other taxation laws" (s 6). That means the Commissioner’s powers to assess, reassess, collect, issue notices, impose penalties and allow objections and reviews are exercised using the Taxation Administration Act machinery.

GST and Commonwealth law

GST definition. The Act adopts the Commonwealth GST definition in s 3(1) but adds that it includes notional GST for which payments may be made under certain Commonwealth transitional provisions for State entities. This affects calculation of amounts payable by users under s 34(2)(b) and integrates the levy recovery into GST accounting in contractual arrangements (s 3(1) def. of GST).

Property and land registration

Registrar of Titles. Section 33 requires the Commissioner to deposit a certificate with the Registrar of Titles to register a charge on land, and the Registrar must make the recording and later remove it on discharge (s 33(1)-(4)). This ties levy enforcement into the Transfer of Land Act system and the Register of Titles.

Education, treaties and other Acts referenced in exemptions

Education and Training Reform Act 2006. "Government school" and "Government school boarding premises" take their meanings from the Education and Training Reform Act 2006 for the purpose of the s 18AA exemption (s 18AA).
Vienna Convention on Consular Relations. The exemption in s 18A uses the international instrument's definitions for consular posts, officers and employees.
Melbourne and Olympic Parks Act 1985 and Melbourne (Yarra Park) Land Act 1980. Section 20A(1)-(2) links the Act to the operational functions of the Trust under the Melbourne and Olympic Parks Act and to Yarra Park Reserve under the Melbourne (Yarra Park) Land Act, exempting certain public car parks managed under those Acts.
Zoological Parks and Gardens Act 1995. Section 20A(3) references land listed in Schedule 1 to that Act and exempts visitor and staff parking in proximity to the zoo.
Local Government Act 1989 and Road Management Act 2004. The definition of "disabled person's parking authority" points to special parking permits issued under these Acts for the s 21 disabled parking exemption.

Public holidays and working days

The Act uses the Public Holidays Act 1993's concept of a "working day" in its definition of that term (s 3(1) def. of working day), which can affect administrative timings and deadlines.

Interaction with leases and private law

Leases, licenses and management agreements. Section 33A creates a statutory indemnity that operates "despite the terms of any lease, licence or arrangement" unless the parties expressly agree to exclude s 33A. Section 34 similarly operates "despite the terms of any lease, licence or other agreement" but contains temporal limits where parties can later expressly agree s 34(7). Those provisions mean that parties drafting leases and management agreements must take the Act into account because statutory obligations can override private contract terms absent express carve-outs.

Transition and other tax amendments

State Tax Laws Amendment and other amending Acts. The Act has been amended several times and contains transitional provisions, including Schedule 2 for special assessment of 2015 in the category 2 area, and section 40 which modifies assessment rules for 2014. Those transitional rules interact with the Taxation Administration Act's reassessment powers (see Sch 2 note).

Taken together, the Act sits within a tax-administration ecosystem, imports definitions and obligations from federal and state statutes for specific purposes, interacts with the Torrens title system for security of unpaid levies, and places statutory constraints on private contractual arrangements governing car park operation and fee-setting.

Amendment history

The text contains explicit amendment annotations and an endnote table that tracks key amending Acts and dates. The Act has been amended multiple times since assent in 2005. The endnote Table of Amendments records the following principal amending instruments and the provisions they affected, with relevant commencement information.

City of Melbourne and Docklands Acts (Governance) Act 2006 (No. 74/2006). Amended Schedule 1 and related provisions in 2006, as recorded in the Schedule amendments to Sch 1.
State Taxation and Gambling Legislation Amendment (Budget Measures) Act 2007 (No. 22/2007). Amended the amount table and related technical provisions in 2007; s 10 shows amendment references.
State Taxation and Accident Compensation Acts Amendment Act 2007 (No. 68/2007). Inserted s 18A, s 33A and s 34 amendments among other changes, with commencement in December 2007; the transitional Part 8 (ss 38-39) applies the indemnity and contractual user provisions retrospectively to 1 January 2006 (s 38-39).
Relationships Amendment (Caring Relationships) Act 2009 (No. 4/2009). Amended the domestic partner definition in 2009.
Statute Law Amendment (Directors' Liability) Act 2013 (No. 13/2013). Added cross-references affecting offences and application of s 130A of the Taxation Administration Act in 2013.
State Tax Laws Amendment (Budget and Other Measures) Act 2013 (No. 41/2013). Commenced 1 January 2014 for ss 3-12, and produced substantive changes including assessment rules; s 40 (inserted) modifies assessment for 2014 and addresses long stay parking spaces.
Statute Law Revision Act 2013 (No. 70/2013). Made style and technical revisions commencing 1 December 2013.
State Taxation Legislation Amendment Act 2014 (No. 34/2014). Significant structural amendments including insertion/substitution of category 1 and category 2 levy areas, CPI indexation rules in s 11, and Schedule 2 replacement for 2015 assessment; these commenced on 14 May 2014 (see marginal notes in s 3, s 10, s 11, Sch 2).
Treasury Legislation and Other Acts Amendment Act 2014 (No. 44/2014). Amended the rounding rules and other technical matters in s 11, commencing 30 June 2014.
Statute Law Revision Act 2015 (No. 21/2015). Technical revisions effective 1 August 2015.
State Taxation Acts Further Amendment Act 2017 (No. 67/2017). Inserted and amended certain exemptions (including zoo/park references) with effect 20 December 2017.
State Taxation Further Amendment Act 2025 (No. 48/2025). Recent changes effective 26 November 2025 for some provisions and 1 January 2026 for others: introduced definitions such as "common areas", "expanded category 2 levy area", "Government school", "retail premises", "retail shopping centre", inserted s 26A (retail concession), and added map and memoranda of understanding provisions (ss 3, 26A, 34A, 34B, and related Schedule 1 amendments). The marginal notes to many sections identify the specific amending Act and section numbers that effected each change.

The Act’s endnotes expressly incorporate the amendment table and identify commencement dates for each amending Act. Several amendments were transitional in nature, with Schedule 2 and s 40 establishing special assessment or transitional rules for specific levy years. Section 38 and 39, inserted by the 2007 amendments, operate as retrospective indemnity and contract-application provisions, taken to have always applied since 1 January 2006. The marginal notes inserted throughout the Act show where specific definitions and sections were added or substituted and cite the relevant amendment instruments and commencement dates.

For practitioners, the marginal notes and Schedule of Amendments in the published version are the authoritative guide to amendment provenance, and the Act itself includes the inserted transitional sections and schedules as part of the version incorporating amendments as at 1 January 2026.

Gotchas

The Act contains a number of technical features and drafting choices that can produce unexpected obligations or compliance traps if not taken into account.

Assessment timing and retrospective population of spaces

Section 13 assesses an owner on 1 January for spaces that "existed as a leviable parking space at any time in the previous year". That means an owner can be assessed for spaces that no longer exist or that were created and removed during the previous year. The corollary is that owners must maintain records for the previous year to support entitlement to concessions and exemptions. Schedule 2 contains a special rule for the 2015 levy in the category 2 area that assesses on spaces existing at any time in 2015 (Sch 2 cl 2).

Counting undelineated spaces

Section 5 requires counting undelineated parking areas by dividing the total area by 25.2 square metres and disregarding any remainder. This is a mechanical rule that can increase the assessed count where a large undelineated area exists. It also provides that signs or temporary barriers are not, of themselves, evidence that a space is not a parking space (s 5(3)). Owners that rely on signage to exclude spaces from assessment face risk.

Exemptions and differing thresholds between private and public car parks

The part-year concession thresholds differ: s 25 applies to private car parks where periods totalling more than 30 days in the previous year render part-year concession; s 26 applies to public car parks for any period or periods during the previous year. The numerical threshold difference is material to owners who temporally reassign spaces to exempt uses or undertake works. In private car parks owners need to exceed 30 days in aggregate to qualify, whereas public car parks are assessed proportionately for any period (s 25(1)-(2); s 26(1)-(2)).

Contractual recovery limitations

Section 34 allows an owner to require a user under an agreement to pay the levy and any GST, but s 34(7) limits this statutory priority: the section applies "despite the terms" of agreements, but only until the earlier of (a) the parties expressly agree that the section is not to apply, or (b) the rent/licence fee could be reviewed or the lease could be terminated. That time limit can alter recovery rights for long-term tenants or where leases have review clauses. Owners relying on contractual recovery need to understand when statutory recovery loses effect.

Statutory indemnity overrides lease terms

Section 33A creates a statutory indemnity between owner and operator in public car parks where only one party may set fees, and it "has effect despite the terms of any lease, licence or arrangement" unless the parties expressly agree otherwise (s 33A(4)). That presents a drafting and commercial risk for landlords and operators who may think their contractual allocation of risk controls indemnity allocation, but the statute can impose a different incumbent obligation unless expressly excluded.

Joint and several liability for public car parks

Section 9(2) makes owner and operator jointly and severally liable. In practice this can lead to recovery actions against one party while the other party is pursued by the indemnity regime in s 33A. Parties need to check operational agreements and ensure consistent fee-setting arrangements to know who will ultimately bear the levy.

Registration timing and penalties

The registration timeframes are strict and vary by area and entrant status. Owners and operators must apply within one month after becoming owner/operator in much of the levy area but there are specific opening dates for initial category 2 areas and the expanded category 2 area (ss 27(2), 28(3)). Failure to register or to notify a change within one month attracts penalties of 60 penalty units (ss 27(1) note, 28(1)-(2) note, 30). The statutory cross-reference to s 130A of the Taxation Administration Act indicates criminal liability may attach to certain offences, elevating the exposure.

Levy as a charge on land

An unpaid levy is a charge on land (s 32) and the Commissioner may register a certificate with the Registrar of Titles (s 33). This can affect property transactions and priority of other creditors. Owners need to monitor for notices and clear levies or arrange discharge to avoid encumbrances on title.

Rounding and calculation quirks

Section 11 contains a non-standard indexation formula summing CPI figures for specific quarters and requires rounding to the nearest $10, with an upward rounding rule where the CPI multiple is an exact multiple of $5 (s 11(1)-(3)). Practitioners should not assume simple annual percentage increase but must apply the exact statutory formula and rounding rules. The Commissioner’s publication obligation in s 12 mitigates uncertainty but must be monitored, as late publication does not affect the operation of s 11(2).

Transitional rules and geography

Amendments have introduced category distinctions and expansion dates. The "initial" and "expanded" category 2 levy area definitions and associated registration windows mean that owners must check which version of the category 2 area applies to their premises and which registration deadline applies (s 3 definitions, ss 27(2)(b)-(c), 28(3)(b)-(c)).

Interaction with other statutes and exemptions

Exemptions rely on other instruments and definitions, e.g., "Government school" under the Education and Training Reform Act, consular exemptions referencing the Vienna Convention and zoo/park exemptions referencing other Acts (ss 18AA, 18A, 20A). Determining whether a space is exempt may therefore require cross-referencing other statutory regimes and land title information.

Taken together, these features mean that owners, operators and tenants must pay careful attention to counting methods, timing, registration deadlines, the interplay between contractual arrangements and statutory indemnities, and the precise wording of exemptions and concessions.

How to comply

Compliance requires coordinated property, tax and contract processes. Below is a practical, source-grounded compliance checklist linked to the Act's provisions.

Determine whether your premises are in the levy area and which category applies

Consult Schedule 1 for the legal description of the category 1 and category 2 levy areas (Sch 1). The Commissioner must publish a map of the levy area on an appropriate website (s 34A(1)-(2)). Use the published map and Sch 1 to confirm geographic applicability.

Count parking spaces using the statutory method

Count individually delineated spaces. For undelineated spaces, divide the total area by 25.2 square metres and disregard any remainder; add that number to the delineated spaces (s 5(1)-(2)). Treat signs or temporary barriers as not conclusive that a space is not a parking space (s 5(3)).

Identify exempt parking spaces and concessions

Apply Part 4 exemptions to each parking space, including visitor/loading, hospital-related parking, council/charity no-charge spaces, consular and Government school parking, emergency services, event parking, zoo and specified park parking, disabled parking, and fleet/bus garaging (ss 17-24, 20A, 18A, 18AA, 21-24). For category 2 retail-related concessions, check s 26A to determine whether a 50% reduction applies for retail customer spaces meeting the exclusive-use and no-charge-for-under-one-hour or purchase-based conditions.

Apply part-year and other concessions

For private car parks, calculate reductions under s 25 where a space was exempt or unavailable for periods totalling more than 30 days in the previous year. For public car parks use s 26 to reduce the levy proportionately for any period(s) in the previous year when the space was exempt or did not exist. Ensure proper record-keeping to evidence periods and entitlement.

Owners of private car parks, and owners and operators of public car parks, must apply for registration in accordance with the Commissioner’s form and information requirements within the statutory timeframes (ss 27(1)-(3), 28(1)-(4)). Note specific registration windows for initial and expanded category 2 areas in ss 27(2)(b)-(c) and 28(3)(b)-(c). Late registration breaches carry penalties (s 27(1) note; s 28(1)-(2) note).

Prepare and lodge annual returns

A person liable to pay the levy must lodge a return on or before 21 January in the levy year (s 31(1)). For public car parks with both owner and operator, returns must be lodged jointly (s 31(2)). Use the Commissioner-determined form and include the information specified by the Commissioner (s 31(3)).

Calculate the levy correctly

Apply the amounts in section 10 for the relevant levy year and category. For years subject to CPI adjustment, apply the formula in s 11, summing the relevant CPI reference periods and rounding per s 11(2). Refer to the Commissioner’s published CPI adjusted levy on the appropriate website, which must be published by 1 December in the prior year (s 12(1)).

Maintain documentation and notices for contractual recovery

If recovery from users is intended, ensure lease/licence/usage agreements clearly record the user’s obligation to pay the levy, and retain copies of the Commissioner’s notice of assessment because the owner must provide a copy on request (s 34(5)). Note s 34(7) which limits the continued effect of s 34 depending on later express agreement or rent review/termination clauses.

Review and, if necessary, renegotiate fee-setting and indemnity arrangements

For public car parks where only one party sets fees, note that s 33A creates a statutory indemnity in favour of the party exposed to levy, which applies despite lease terms unless the parties expressly agree s 33A will not apply (s 33A(4)). Parties should expressly document any agreement that s 33A will not apply if they wish to override the statutory indemnity.

Plan for payment, property security and title impacts

Pay levies in accordance with the assessment and due dates under the Taxation Administration Act, which governs notices of assessment and payment obligations (s 6). An unpaid levy is a charge on land (s 32), and the Commissioner may register a certificate describing the charged land with the Registrar of Titles (s 33). Monitor title searches and clear levies to avoid encumbrances.

Notify the Commissioner of changes promptly

Notify within one month of ceasing to be owner or operator, or of premises ceasing to be a car park (s 30(1)-(3)), to avoid penalties.

Use the Taxation Administration Act’s objection and review paths where needed

Any dispute over assessment or final adjustment (including reassessments under Schedule 2 transitional rules) will be administered and reviewed using the Taxation Administration Act 1997 process (s 6; Sch 2 note). Prepare to engage those objection and review procedures if required.

Ensure compliance across multiple statutes

Check whether exemptions rely on other instruments, for example Education and Training Reform Act definitions for Government schools (s 18AA), or Vienna Convention status for consular exemptions (s 18A). Confirm title ownership, management arrangements and whether particular car parks are within prescribed parks or zoo areas under other Acts (s 20A).

Keep abreast of Commissioner publications and maps

The Commissioner must publish the CPI adjusted levy and the levy-area map on appropriate websites (ss 12, 34A). Regularly consult these publications for the most recent levy amounts and boundary information.

This checklist maps to the Act’s sections and the Commissioner's powers to determine forms and information. Practitioners should document counts, exemptions, contractual allocations, registration filings and returns, and maintain evidence of the timing and nature of space use to support any concessions or objections. Drafting of leases and management agreements should explicitly address s 33A and s 34 to align commercial allocations with statutory defaults.