Parking tax has Melbourne in a lather Author: Mark Phillips Date: 03/01/2006 Publication: The Financial Review
The Victorian government has come under fire for its new levy on parking spaces in central Melbourne amid predictions the tax will be a "dog's breakfast" to administer.
Melbourne returns to work today to the $400-a-year congestion levy, which applies to almost 50,000 daily off-street and office-building parking spaces in the central business district and some inner city areas.
But the levy - which will net $19 million this year before rising to $800 a year in 2007 - has been criticised because of confusion over the parking spots it affects.
It does not apply to residential spaces or where the operator can demonstrate that spaces are occupied by short-term users for less than four hours.
A number of other exemptions also apply, including disabled spaces.
"The whole administration of the thing will be a dog's breakfast," said Ken Ogden, general manager of public policy with the Royal Automobile Club of Victoria.
He said the introduction of the levy had been mismanaged by the government, which has extended the deadline for registration by more than a month.
"It's extremely difficult to determine what is a long-term park, there was uncertainty about where the boundaries were, and I think it's going to be a very expensive tax to collect, both for the collector and a burden on the car park operator.
"The fact there's a delay indicates the administrative complexity associated with a pretty ad hoc and very expensive tax."
The tax is administered by the State Revenue Office. Some $5 million of revenue raised will be passed on to the City of Melbourne.
Car park operators must file a registration form breaking down their spaces into different categories for taxation purposes and apply for rulings from the commissioner for state revenue on exemptions.
The commissioner for state revenue, Paul Broderick, extended the closing date for registration from January 21 to February 28 to ensure a smoother start for the levy.
In response to reports that some car park operators had increased hourly rates for short-term spaces, Treasurer John Brumby last week asked the Australian Competition and Consumer Commission and Consumer Affairs in Victoria to monitor the levy's introduction, and urged motorists to report excessive price rises. He said the levy should result in a rise of no more than $40 a month for long-term spaces.
Wilson Parking general manager Craig Smith said concerns about excessive price rises were a smokescreen by the government to divert attention from an unpopular tax.
Wilson wrote to its customers before Christmas advising them of a $35-a-month increase in parking fees to cover the tax.
Mr Smith said the levy had been introduced in haste and without proper consultation.
"We're unpaid tax collectors [for the state government], and they've tried to divert attention away from the tax by pointing at the operators and calling in the ACCC."