Council has endorsed a plan to reduce Stonnington's exposure to the Victorian Government's Congestion Levy by $1.134 million, saving ratepayers and car park users from bearing this cost.
Under the plan, Council will achieve these savings by:
- reducing the number of spaces subject to the levy by closing underutilised rooftop parking at the Council-owned King Street and Elizabeth Street car parks; and
- making operational changes to enable Council to seek a 50% levy concession on the remaining spaces at Elizabeth Street.
Implementation of these changes will include expanding the existing ticket validation program at Elizabeth Street to offer one-hour of free parking to cover all market trading hours, with no minimum spend needed.
This will support local traders, encourage more people to shop locally and make market visits more convenient at any time of the day, not just in the mornings. Users with monthly parking permits at Elizabeth Street will still be able to enter and exit at any time
Based on average occupancy data, Council does not expect the changes will have a material impact on parking availability. Timed on-street parking across Stonnington remains free of charge, including within the Chapel Street Precinct.
City of Stonnington Mayor, Cr Melina Sehr said the plan is forecast to reduce Council's levy liability by more than $1.134 million in the 2027 financial year, leaving an estimated levy recovery shortfall of $158,837.
"Council needs to find $4.1 million annually to meet its current Congestion Levy obligation. Doing nothing would mean either asking ratepayers to absorb that cost through general revenue or accept increased off-street parking costs that could place additional pressure on free and lower-cost local parking options in surrounding streets," said Cr Sehr.
"Neither outcome is in the community's best interests."
"Our focus is to make the most efficient use of the off-street parking we have, maximise patronage where demand exists, and reduce Council's exposure to a growing levy cost,"
"This helps ensure the cost of the levy is met by the car parks it applies to, rather than being subsidised by the broader community."
"At a time when councils are facing increasing financial pressure, we have a responsibility to minimise avoidable costs and protect ratepayer funds."
A review of the changes will be provided to Council in six months' time.
NOTE: The Victoria Govt Congestion Levy commenced in Stonnington on January 1st, 2026.
Council owns 10 off-street car parks with 1903 parking spaces that attract the levy.
The 2026 rate for Stonnington is $2,150/space, regardless or occupancy or revenue.
