Car-park operators drive home levy fight Author: Mark Phillips Date: 01/12/2005 Publication: The Financial Review
Parking operators will meet the Victorian government today to try to avert a shutdown of Melbourne car parks in protest at a new traffic-congestion levy.
The $400-a-space levy will come into effect on January 1. The Parking Association of Victoria will take an eight-point list to the meeting with the Treasury and the State Revenue Office in a bid to lessen the impact of the levy.
Earlier this week, the two largest operators, Wilson and S&K, who together run about 33,000 spaces, threatened to close from 6.30am to 9.30am on December 12.
The levy is being imposed by the state government on the owners and operators of public and private car parks in Melbourne's central business district and selected inner-city precincts.
The parking and property industries say similar levies in Sydney and Perth have failed to reduce congestion, and the Victorian government's tax is simply a revenue-raising measure.
It applies to non-residential long-term car parks in the CBD, Docklands, Southbank and St Kilda Road, and is expected to raise $19 million in 2005-06.
It will double to $800 in 2007, when it should raise $38.5 million.
The tax will apply to about two-thirds of an estimated 70,000 daily off-street and office-building parking spaces.
Wilson Parking general manager Craig Smith said the operators believed the technical points they wanted changed would reduce the impact of the levy.
These included a change in how the tax was calculated. Instead of a flat tax on 75 per cent of all spaces, the levy would be imposed on the basis of a daily count of occupied spaces at 9.30am.
The operators also wanted clarification of concessions to ensure shiftworkers did not face the full impact of the levy.
"We still object strenuously to the whole idea of a congestion tax and will be electioneering with the state opposition in 12 months' time and reminding all of our customers that every time they come into a car park they are paying the Bracks tax," Mr Smith said.
The executive director of the Property Council's Victorian division, Jennifer Cunich, said: "This just shows the sheer frustration with the Victorian government over this issue, for someone to take drastic action to shut down for three hours."
The full effect of the levy would include fringe benefits tax and administrative costs.
In Sydney, a levy was introduced in 1992. It is set at $860 for Sydney, North Sydney and Milsons Point, and $430 for Bondi Junction, Chatswood, Parramatta and St Leonards.
Perth's parking levy, introduced in 1999, applies at rates of $163.50 to $189, and $82 for motorcycles.
KEY POINTS
? Melbourne's biggest car-park operators have threatened to close for one rush-hour period.
? Operators will propose changes to the way a traffic-congestion levy is applied.