Tax hanging over drivers Herald Sun December 20, 2006 12:00am JENNIFER Cunich writes:
THE Victorian Government is about to add to the New Year headache many commuters will have as they drive to the city.
From 1 January, the car parking tax on long-stay spaces in the CBD and some surrounding areas will jump from $400 a year to $800.
It's called the congestion levy and is a tax covering parking around Docklands, St Kilda Rd, East Melbourne, Southbank, Carlton and parts of North Melbourne.
The increased tax will be passed on to the public by carpark operators who will absorb administration costs in passing on the tax to the Government.
For many motorists, this is their second New Year headache.
The tax was introduced 12 months ago and this rise comes on top of petrol price increases and interest rate rises.
It is more money that must come out of family budgets at a time when most families are struggling to pay their bills.
Projected Government Budget surpluses averaging $316 million a year over the next three years make this tax even harder to swallow.
The car parking tax is a significant burden on businesses, property owners and employees, who need to drive their vehicles to the CBD.
For many, driving to work isn't a luxury, it's a necessity.
They have to contend with early or late starts, travelling to different sites throughout the day, picking up children from school and stopping to buy something for dinner on the way home.
Imagine how difficult it would be for a parent with young children living in the suburbs and not having access to a car.
The tax is also payable on weekends, when buses and trains don't run to the city every few minutes.
The public transport system is still under stress despite the introduction of this tax 12 months ago.
For many people, taking public transport from the outer suburban areas to the CBD is not an option.
They are an easy target for a tax and there is always a risk of the tax increasing or the net being cast wider.
Imagine the impact a wider tax would have in major suburban retail and office precincts and industrial parks.
The tax is also bad policy because it has not achieved any of its objectives.
It was introduced with the aim of reducing traffic congestion and pollution and greenhouse gas emissions in the CBD.
Also to promote short-stay off-street parking and raise revenue for public transport initiatives.
Research for the Property Council of Australia by Access Economics clearly supports the argument that this tax is flawed.
The report argues that the tax is a blunt, poorly designed and discriminatory method of mitigating the costs associated with traffic congestion.
Similar taxes in Sydney and Perth have also failed to alleviate traffic congestion.
The Property Council supports increased public transport patronage, but does not believe the car parking tax in the CBD is the best way to achieve it.
Major investment is needed in public transport to increase services, safety and capacity.
The State Government should get serious about funding public transport infrastructure through debt and public-private partnerships.
The Property Council believes the tax should be abolished.
At the very least, the scheduled doubling of the tax on January 1 should be deferred until the Bracks Government releases the findings of the Victorian Competition and Efficiency Commission report on congestion in Melbourne.
The Victorian Government should develop a range of recommendations to tackle this issue and a strategy that will see it improve public transport in Melbourne.
This tax should not be increased without having the complete picture of what causes congestion in greater Melbourne.
Congestion is a metropolitan issue that won't be solved by picking on office workers and their employers.
Melbourne needs a real transport congestion strategy rather than a piecemeal approach.
This tax is not about car parking, but about a grab for cash at a time when the Victorian Government is awash with money.
For a second consecutive year, those who drive their car to work will pay the price for poor policy.
It's another reason to take a Berocca on New year's Day.
JENNIFER CUNICH is Victorian executive director of the Property Council of Australia, which represents property owners, superannuation funds, investors and developers