The government's proposal to raise its congestion levy will force unsafe commutes for those who cannot afford the price hike of an additional $1386 on top of current parking rates.
Many carpark users come from outer suburbs without convenient access to public transport, with some of these drivers being shift workers rostered on at odd hours. This includes nurses, cleaners, security and hospitality staff.
Property Council Victorian Executive Director Cath Evans says that off-street parking plays a crucial role for workers trying to do their jobs safely.
"Off-street parking is used heavily by the essential workers who keep Melbourne running," she said.
"Driving is, for many people, undoubtedly safer than catching public transport at odd hours of the morning or night.
"The government say they are 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.
"During a cost-of-living crisis, workers are now facing an exponential rise in costs."
Since the introduction of the levy in 2006, the rate has grown by 658 per cent, collecting a total of $1.477 billion in revenue for the Victorian Government, with no proof that the levy is reducing congestion.
"The Victorian Government's proposed conditions are far harsher than NSW congestion levy - including the fact Sydney asset owners are not charged for unused carparks," Ms Evans said.
"Retail businesses in NSW are excluded from the levy, whereas retail in Victoria is included under the current proposal. Additional levies also act as a disincentive for people to return to, and invest in, the city.
"We are imploring the government to at the very least delay implementation by another 12 months to work through these important issues.
"This levy is unfair, unnecessary, and poorly timed. It burdens those who can least afford it and threatens to stall Melbourne's recovery."
Cr Stephen Jolly, City of Yarra Mayor
"The increase in the congestion tax and the widening of its catchment area is the latest in a list of new taxes from this government.
"It's not about congestion, it's about revenue-raising.
"The effect on Yarra could be the loss of one or both of our shopping centers. This would be the biggest economic hit to Yarra in its history.
"I appeal to the Premier to see sense and stop this short-sighted policy change."
Dale Dickson PSM, Stonnington Council CEO
"Council has made the difficult but necessary decision to adjust car parking fees from 1 July 2025 to help smooth the financial impact of this tax.
"We've taken this approach because the levy is charged based on carpark availability the previous year - meaning we will have to pay the $6 per day per car space tax to the State Government regardless of whether an individual car space was used or not. By acting now, we're able to spread the cost more evenly across the full year and avoid a far steeper spike in parking charges later in the financial year.
"This decision helps safeguard essential Council services, supports responsible financial planning, and gives us time to monitor car park usage and adjust our approach before the full-year impact of the tax begins in 2026-27."
