City parking market goes underground THE AGE By Cameron Houston April 3, 2006
THE State Government's congestion levy has created a thriving black market in private car parks, as office workers lease spaces from CBD residents to avoid the $400 tax.
The levy was imposed on all long-term car parks on January 1 and will double to $800 next year. City residents are exempt.
"It's a win, win," said Carlton resident James, who rents out his car park to a worker based in William Street.
James, who refused to give his surname, receives $200 a month for the space. "I'm a student at RMIT and I only have a part-time job, so the extra money is a bonus, while he gets a car park well below market rate," he said.
The Age also spoke with a Collins Street businessman who leases a space in an adjoining apartment building, after leaving his details in a tenant's letterbox.
"You can pick up a car park from a resident that is often below commercial rates and exempt from the levy," he said.
Several internet sites have sprung up to cater for the burgeoning market with spaces ranging from $150 to $400 a month, depending on proximity to the city and security.
Findacarpark.com.au founder Francis Armstrong said his site received more than 1000 inquiries each day. The levy had been a boon for business, he said.
"The demand is fierce and car park listings rarely last any longer than 48 hours," he said.
Most listings came from residents in Southbank and South Melbourne, particularly overseas students who often did not own a car. Mr Armstrong said he advised residents of their legal obligations, but could not force them to comply.
Sally Finlay, a spokeswoman for Treasurer John Brumby, said residents should pay the levy on all private car parks used commercially. A spokesman from the State Revenue Office said those who flouted the law could be fined the $400 levy and an extra 25 per cent.
Developers have also responded to the levy, with proposals for car park developments just outside the boundaries of the tax. PDG Corporation managing director Vince Giuliano said the company was planning a development in Moray Street, South Melbourne, that would include several levels of parking. It would provide a shuttle service to transport workers to the CBD.