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Congestion Levy Bill
Introduction Print
EXPLANATORY MEMORANDUM
General
This Bill introduces a levy on parking spaces in certain inner city areas of
Melbourne, including the CBD, Southbank, St Kilda Road, Docklands and
East Melbourne. The levy is designed to reduce traffic congestion in
Melbourne's inner city by acting as a financial deterrent to drivers who arrive
and leave during commuter peak hours and park all day in city car parks.
It aims to encourage suburban commuters to use public transport to travel
into the city and car park owners/operators to convert long stay car parking
spaces, which will attract the levy, into short stay parking spaces, thereby
creating more parking options for shoppers and visitors.
Clause Notes
PART 1--PRELIMINARY
Part 1 of the Bill outlines the purpose of the Bill and contains the
commencement provision.
Clause 1 outlines the purpose of the Bill.
Clause 2 provides that the Bill comes into operation 1 January 2006.
Clause 3 Sub-clause (1) contains the following definitions--
"car park" means premises or part of premises in the levy area
that contain one or more parking spaces;
"CPI adjusted levy" has the meaning given in clause 11;
"exempt parking space" means a parking space declared by or
under Part 4 to be an exempt parking space;
"leviable parking space" means a long stay parking space in a
car park that is not an exempt parking space;
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551369 BILL LA INTRODUCTION 3/10/2005
"levy" means the levy imposed by clause 8;
"levy area" means the area described in Schedule 1;
"levy year" means a year for which the levy is being assessed;
"long stay parking space" has the meaning given in clause 4;
"motor vehicle" does not include a motor cycle;
"operator" of a public car park means a person who is not the
owner of the premises on which the car park is situated but
who operates the car park under a lease, licence or other
arrangement;
"owner" of premises means--
· a person who holds a freehold interest in the land
on which the premises are situated;
· if the premises are on Crown land--
· if the land is unalienated Crown land--the
Crown;
· if the Crown has granted a lease or licence
over the land--the lessee or licensee of
the land;
"parking space" means--
· a space set aside for the parking of a motor
vehicle, whether or not the space is used for the
parking of a motor vehicle and whether or not
the space is permanently delineated as such; or
· a space used for the parking of a motor vehicle,
whether or not the space is permanently
delineated as such--
but does not include a space that is part of the
carriageway of any street, road or lane open to or used by
the public;
"premises" includes vacant land;
"private car park" means a car park or part of a car park that is
not a public car park;
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"public car park" means a car park the predominant number of
parking spaces in which are set aside for, or used by, the
general public, whether on a casual basis or under any kind of
longer-term arrangement, but does not include part of a car
park determined by the Commissioner under sub-clause (2)
not to be a public car park;
"working day" means a day other than a Saturday, a Sunday or
a public holiday appointed under the Public Holidays Act
1993;
"year" means a calendar year.
Sub-clause (2) enables the Commissioner to determine that any
part of a car park set aside for parking by an owner or tenant of
the building in which the car park is located is not a public car
park for the purposes of the Bill.
Clause 4 Sub-clause (1) defines a "long stay parking space" to be--
· a parking space in a private car park; or
· a parking space in a public car park that is--
· set aside or used for ongoing parking by the
owner of the space or by another person under a
lease, licence or other arrangement with the
owner; or
· used for the parking of a motor vehicle for a
period of at least 4 hours on a working day,
commencing at or before 9.30 a.m. and ending at
or after 9.30 a.m.
The definition is intended to capture the parking spaces used by
those who contribute most to inner city congestion.
Sub-clause (2) provides that if more than one space, as referred to
in sub-clause (1)(b)(ii) is used for the parking of one or more
motor vehicles, but no one vehicle necessarily remains in the
same parking space for the duration of the vehicle's stay on a
particular day, each of those spaces is taken to be a long stay
parking space.
The purpose of this sub-clause is to ensure that the practice of
"stack parking" is captured for the purposes of the levy and to
ensure that cars are not moved between spaces to avoid the levy.
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Sub-clause (3) provides that where the period of stay for a motor
vehicle in a parking space cannot be ascertained, the parking
space is taken to be a long stay parking space if a motor vehicle
is parked in it at 9.30 a.m. on any working day.
Clause 5 Sub-clause (1) provides the mechanism for calculating the
number of parking spaces where premises contain parking spaces
that are not individually delineated by permanently marked lines.
Sub-clause (2) provides that, for the avoidance of doubt, the
spaces determined in accordance with sub-clause (1) are in
addition to the permanently delineated parking spaces in the car
park.
Sub-clause (3) provides that a sign or temporary barrier
purporting to indicate that a space is not a parking space is not, of
itself, evidence that the space is not a parking space.
Clause 6 provides that the Act is to be read together with the Taxation
Administration Act 1997, which deals with matters of
administration and enforcement of taxation laws. This means the
Act will be subject to the same administrative and enforcement
provisions as the other taxation laws administered by the State
Revenue Office.
Clause 7 provides that the Act binds the Crown.
PART 2--IMPOSITION OF LEVY
Part 2 of the Bill provides for the imposition of the levy.
Clause 8 imposes a levy each year (being a calendar year) in respect of
each leviable parking space.
Clause 9 Sub-clause (1) imposes liability to pay the levy on the owner of
premises.
Sub-clause (2) imposes, in the case of a public car park only, a
joint and several liability to pay the levy on the owner of
premises and the operator of the public car park.
Clause 10 Sub-clauses (1) and (2) stipulate the amount of the levy for 2006
as being $400 per leviable parking space and for 2007 as being
$800 per leviable parking space.
Sub-clause (3) provides that the amount of the levy for 2008 and
subsequent years is the CPI adjusted levy for that year per
leviable parking space.
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Clause 11 Sub-clause (1) sets out the formula for calculating the CPI
adjusted levy referred to in clause 10(3) and provides an example
of such a calculation.
Sub-clause (2) provides for the rounding up or down to the
nearest $10 of the CPI adjusted levy. If the amount by which the
levy is to be rounded is $5, it is to be rounded up.
Sub-clause (3) defines the consumer price index to mean the
Consumer Price Index (All Groups Index) for Melbourne issued
by the Australian Statistician (or, if the regulations prescribe
another economic index for the purposes of this section, that
other index).
Clause 12 Sub-clause (1) requires the Commissioner of State Revenue to
publish the CPI adjusted levy for a levy year on an appropriate
website on or before 1 December in the previous year.
Sub-clause (2) provides that a failure to comply with sub-
clause (1) in respect of a levy year does not affect the operation
of clause 11 in respect of the levy payable that year.
PART 3--ASSESSMENT OF LEVY
Part 3 of the Bill provides for the assessment of the levy.
Clause 13 Sub-clause (1) provides that an owner of premises on 1 January
in a year is to be assessed for the levy for that year on each space
that existed as a leviable parking space at any time in the
previous year on the premises. This applies from the 2007 levy
year (see Schedule 2).
Accordingly, from 2007, the levy will be based on the use of
the parking space as a long stay, off street parking space in the
calendar year previous to the one when the liability arises.
This avoids the need for complex and time consuming annual
adjustments, as the calculation will be based on actual, not
estimated, usage. For example, the liability that arises on
1 January 2007 will be calculated by reference to the parking
space usage in the 2006 calendar year.
Sub-clause (2) provides that sub-clause (1) applies whether or not
the space exists as a leviable space on 1 January in the levy year
and whether or not the owner was the owner of the premises at
the time the space existed as a leviable parking space.
Sub-clause (3) provides that the operator of a public car park on
1 January in a year is to be assessed for the levy on each space
that existed as a leviable parking space in that car park at any
time in the previous year.
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Sub-clause (4) provides that Schedule 2 contains special
provisions for the assessment of the levy for 2006. These special
provisions have been introduced to accommodate the fact that
parking space data may not be available for the 2005 calendar
year.
Clause 14 provides for a statutory ratio that is to apply to the parking spaces
in a public car park.
Sub-clause (1) provides that, for the purpose of assessing the levy
for a year in respect of a public car park at any time in the
previous year, the Commissioner must assume that 75% of the
non-exempt parking spaces in that car park are leviable parking
spaces. This means that 25% of the non-exempt parking spaces
will not be subject to the levy (even if, in actual fact, all the
spaces in the public car park are used for long stay parking).
The statutory ratio has been introduced to reduce the
administrative burden on owners/operators by removing the
requirement to keep detailed records of the number of long stay
and short stay parking spaces.
Sub-clause (2) provides that clause 14 is subject to clause 15
(see below).
Clause 15 provides for a variation of the statutory ratio referred to in
clause 14.
Sub-clause (1) allows the Commissioner, on application by the
owner or operator of a public car park, to approve a percentage of
less than 75% as being the percentage of parking spaces in that
car park (other than exempt parking spaces) that are leviable
parking spaces in respect of any levy year.
Sub-clause (2) provides that an approval under this clause takes
effect for the levy year following the year in which the approval
is given and remains in force until varied or revoked by the
Commissioner.
Sub-clause (3) requires the Commissioner, if an approval is in
force under this clause for a public car park, in assessing the levy
payable in respect of the car park, to assume that the approved
ratio of the parking spaces in that car park are leviable parking
spaces.
Sub-clause (4) empowers the Commissioner to vary or revoke
an approval given for a percentage of less than 75%. Notice must
be given to the owner or operator of a public car park.
The Commissioner cannot, however, vary an approval so that
the percentage exceeds 75%.
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Sub-clause (5) provides that, if an approval has been given by the
Commissioner under clause 4 of Schedule 2 in respect of 2006,
that approval is taken, for the purposes of subsequent years, to be
an approval given under this clause, until varied or revoked by
the Commissioner.
The purpose of this clause is to allow owners/operators to apply
for approval of a lower percentage than the 75%. This is
intended to enable those owners/operators of a public car park
who keep detailed records or data of their parking space usage to
apply for a ratio based on actual use.
PART 4--EXEMPTIONS AND CONCESSIONS
Part 4 of the Bill sets out exemptions and concessions in relation to the levy.
Division 1--Exempt Parking Spaces
Clause 16 exempts a parking space set aside or used exclusively for parking
of a motor vehicle by a person for residential purposes.
Sub-clause (2) provides that a reference to residential purposes in
sub-clause (1) includes a reference to temporary residential
purposes such as staying in a hotel, serviced apartment or club
that provides accommodation.
Clause 17 Sub-clause (1) provides exemptions in respect of a parking space
set aside or used exclusively for parking of a motor vehicle,
without charge, by a person--
· who is a client, patient or consultant of the person who
provides the parking space; or
· who is providing maintenance services to the owner or
occupier of the premises on which the parking space is
located; or
· who is visiting the premises on which the parking space
is located, unless those premises are the person's usual
place of business or work; or
· who is engaged in loading or unloading goods or
passengers.
People visit office buildings and other business premises for
short periods of time for a range of reasons (eg. delivering
goods, attending business meetings or training seminars).
Many buildings allocate short stay visitor car parking spaces
specifically for these kinds of purposes. This clause is intended
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to exempt those types of "visitor" parking spaces so long as they
are provided without charge.
Sub-clause (2) provides an exemption in respect of a parking
space set aside and used exclusively for parking of a motor
vehicle by a person whilst a patient of a hospital or visiting or
accompanying a patient of a hospital.
The purpose of this exemption is to exempt parking spaces
provided by hospitals for patients, their visitors or those
accompanying the patients whether or not a charge is made for
the parking space.
Clause 18 exempts a parking space if it is provided, without charge, on
premises which are owned by a municipal council, religious
body, charitable or public benevolent institution, hospital,
university, library or museum.
Clause 19 exempts a parking space set aside or used exclusively for parking
without charge of emergency vehicles, including police vehicles,
ambulances, fire service units, defence force vehicles and State
Emergency Service vehicles.
Clause 20 exempts a parking space set aside or used exclusively for the
parking of a motor vehicle in conjunction with a particular event
if that parking space is unavailable for parking at all other times.
An example is provided in the Bill of parking spaces in Yarra
Park that are only available when events are held at the
Melbourne Cricket Ground or Melbourne Park.
Clause 21 exempts a parking space set aside or used exclusively for the
parking of a motor vehicle displaying a disabled person's parking
authority.
Sub-clause (2) defines a "disabled person's parking authority".
Clause 22 exempts a parking space set aside or used exclusively for the
parking of a motor vehicle by an employee of a business that
operates 24 hours a day on working days while the employee is
attending work.
This clause is intended to exempt shift workers employed by a
business that operates 24 hours a day so that those parking spaces
used by workers who arrive, for example, at 4.30 a.m. and leave
at 10.30 a.m. are not subject to the levy. The reason for this is
that such users are not the intended target of the levy as they do
not contribute to peak hour traffic but the parking spaces they use
would, without the exemption, attract the levy.
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Clause 23 exempts a parking space set aside or used exclusively for the
overnight parking of a fleet vehicle or for the parking of a
passenger bus during layover periods.
Clause 24 exempts a parking space set aside or used exclusively for the
parking of display vehicles that are being offered for sale or hire
and vehicles that are being serviced or repaired on the premises
on which the space is located or on adjoining premises.
Division 2--Concessions
Clause 25 provides that the levy payable on a parking space in a private car
park that, for a total of more than 30 days in any year, is exempt,
incapable of being used or does not exist as a parking space is to
be reduced by the same proportion as the proportion of the year
represented by those periods when the space was exempt,
incapable of being used or did not exist as a parking space.
An example is provided:
A parking space in a private car park that is otherwise a leviable
parking space is set aside for emergency vehicle parking for all of
March 2007. It is also not capable of being used as a parking
space from 1 July to 30 September 2007 because of building
works. The total of those periods is 4 months, or 1/3 of the year.
Therefore, the amount of the levy for 2008 on the space is to be
reduced by 1/3 of the full levy.
Clause 26 provides that the levy payable on a parking space in a public car
park that, for any period during a year, is exempt or does not
exist as a parking space is to be reduced by the same proportion
as the proportion of the year represented by those periods when
the space was exempt or did not exist as a parking space, taking
into account the statutory ratio.
An example is provided:
A parking space in a public car park comes into existence on
1 June 2007. It is a long stay parking space for the rest of 2007
except for the month of September, when it is used as a loading
bay. Therefore, the space did not exist, or was exempt, for a total
of 6 months in 2007, or half the year, and the levy for 2008 in
respect of the space is reduced by half subject to applying the
relevant statutory ratio for the public car park under clause 14
or 15.
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PART 5--REGISTRATION AND RETURNS
Part 5 of the Bill provides for registration and returns.
Division 1--Registration
Clause 27 Sub-clause (1) requires the owner of a private car park to apply to
the Commissioner of State Revenue for registration.
There is a maximum penalty of 60 penalty units for failure to
comply. This is in line with the maximum penalty in other state
taxation legislation for a failure to register.
Sub-clause (2) requires the application to be made by 21 January
2006 if the owner owned the car park on 1 January 2006. If the
owner became the owner after 1 January 2006, the application to
register must be made within one month after becoming the
owner.
Sub-clause (3) requires the application to be in the form and
contain the information required by the Commissioner.
Clause 28 Sub-clause (1) requires the owner of a public car park to apply to
the Commissioner of State Revenue for registration.
Failure to comply with the registration requirement carries a
maximum penalty of 60 penalty units, identical to the maximum
penalty in clause 27(1).
Sub-clause (2) requires the operator of a public car park to apply
to the Commissioner of State Revenue for registration.
Failure to comply with the registration requirements carries a
maximum penalty of 60 penalty units, identical to the maximum
penalty in sub-clause (1) and clause 27(1).
Sub-clause (3) sets out the time limits for the application,
requiring it to be made by 21 January 2006 if the owner or
operator owned or operated the car park on 1 January 2006. If the
owner or operator becomes the owner or operator after 1 January
2006, the application to register must be made within one month
after becoming the owner or operator.
Sub-clause (3) requires the application to be in the form and
contain the information required by the Commissioner.
Clause 29 Sub-clause (1) requires the Commissioner to register a person
who applies for registration.
Sub-clause (2) empowers the Commissioner to remove a person
from, or amend, the register.
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Clause 30 Sub-clause (1) requires a person who ceases to be the owner of a
private or public car park to notify the Commissioner within one
month after ceasing to be the owner.
Sub-clause (2) requires a person who ceases to be the operator of
a public car park to notify the Commissioner within one month
after ceasing to be the operator.
Sub-clause (3) requires the owner of premises that cease to be a
car park to notify the Commissioner within one month after the
premises cease to be a car park.
There is a maximum penalty of 60 penalty units for a breach of
each of these notification requirements.
Division 2--Returns
Clause 31 Sub-clause (1) requires a person liable to pay the levy for a year
to lodge a return in respect of that year on or before 21 January.
Sub-clause (2) requires that, where there is both an owner and
operator of a public car park, they must jointly lodge the return.
Sub-clause (3) requires the return to be in the form and contain
the information required by the Commissioner.
PART 6--GENERAL
Part 6 of the Bill provides for general matters.
Clause 32 provides that an unpaid levy is a charge on the land on which the
leviable parking space is located.
The purpose of this clause is to protect state revenue by charging
the asset (the land) owned by the party liable to pay the levy.
This is similar to the manner in which land tax revenue is
protected.
Clause 33 Sub-clause (1) provides a mechanism by which the charge on
land may be registered with the Registrar of Titles.
Sub-clause (2) requires the Registrar of Titles to make a
recording in the Register.
Sub-clause (3) provides that the Commissioner can request that,
once the outstanding levy is paid, the charge can be removed or
deleted or make a recording in the Register of the discharge of
the charge.
Sub-clause (4) requires the Registrar of Titles to comply with the
Commissioner's requests.
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Clause 34 applies to private car parks only and enables the owner of each
parking space to pass the levy onto the user of the parking space
despite there being an existing agreement between the owner and
the user (eg. a monthly or annual agreement) which would
prevent the owner passing on the levy.
Sub-clause (3) provides that if a person used the parking space
for only part of the year, the amount of levy to be paid will be
reduced proportionately.
Sub-clause (4) provides that the user of the parking space must
pay the amount of the levy required at or before the time the
owner is required to pay (this being the date set out on the notice
of assessment that will be issued by the State Revenue Office).
Sub-clause (5) requires the owner to provide the user with a copy
of the assessment.
Sub-clause (6) enables the owner to recover any amount unpaid
by the user as a debt in a court of competent jurisdiction.
Sub-clause (7) stipulates that this clause has effect despite the
terms of any lease, licence or agreement but only until the earlier
of there being any express agreement between the owner and the
user or the lease, licence or agreement could be reviewed or
terminated.
Clause 35 allows the Governor in Council to make regulations with respect
to the levy.
PART 8--AMENDMENT OF TAXATION ADMINISTRATION
ACT 1997
Part 8 of the Bill amends the Taxation Administration Act 1997 so that it
applies to the levy.
Clause 36 Sub-clause (1) amends section 3 of the Taxation
Administration Act 1997 to expand the definition of "tax" to
include a "levy".
Sub-clause (2) amends the Taxation Administration Act 1997
to provide that the Congestion Levy Act 2005 is a taxation law
for the purposes of that Act.
Clause 37 amends section 135 of the Taxation Administration Act 1997 to
provide a limitation on the jurisdiction of the Supreme Court in
matters pertaining to the Congestion Levy Act 2005.
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SCHEDULES
SCHEDULE 1
LEVY AREA
Schedule 1 defines the levy area.
SCHEDULE 2
ASSESSMENT OF LEVY FOR 2006
Schedule 2 contains provisions dealing with the levy for 2006 only.
Clause 1 clarifies that this Schedule applies only for the purposes of
assessing the levy for 2006.
Clause 2 Sub-clause (1) provides that, for 2006, the owner of premises is
to be assessed for the levy on each parking space that exists as a
leviable parking space in 2006.
Sub-clause (2) provides that, for 2006, the operator of a public
car park is to be assessed for the levy on each parking space that
exists as a leviable parking space in 2006.
This clause relates to the first year of the levy only (the 2006
calendar year). Liability is to be imposed on owners of private
car parks and owners/operators of public car parks that contain
parking spaces that are used for long stay parking during that
2006 year. This is to accommodate the fact that this is a new
levy and that data may not be available from the 2005 calendar
year.
Clause 3 provides that the Commissioner must assume, for the 2006 year,
that 75% of the non-exempt spaces in a public car park are
leviable. This is the same position as is provided for in later
years under clause 14 of the Bill.
Clause 4 provides for a variation of the statutory ratio referred to in
clause 3.
Sub-clause (1) allows the Commissioner, on application by the
owner or operator of a public car park, to approve a percentage of
less than 75% as being the percentage of parking spaces in that
car park (other than exempt parking spaces) that are leviable
parking spaces in respect of 2006.
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Sub-clause (2) requires the Commissioner, if an approval is in
force under this clause for a public car park, in assessing the levy
payable in respect of the car park, to assume that the approved
ratio of the parking spaces in that car park are leviable parking
spaces.
Sub-clause (3) empowers the Commissioner to vary or revoke an
approval given for a percentage of less than 75%. Notice must
be given to the owner or operator of a public car park.
The Commissioner cannot, however, vary an approval so that
the percentage exceeds 75%.
Clause 5 provides concessions for certain parking spaces.
Sub-clause (1) provides that the levy payable on a parking space
in a private car park for 2006 that, for a total of more than
30 days in 2006 is exempt, incapable of being used or does not
exist as a parking space is to be reduced by the same proportion
as the proportion of the year represented by those periods when
the space was exempt, incapable of being used or did not exist as
a parking space.
Sub-clause (2) provides that the levy payable on a parking space
in a public car park for 2006 that, for any period periods during
2006 is exempt or does not exist as a parking space, is to be
reduced by the same proportion as the proportion of the year
represented by those periods when the space was exempt or did
not exist as a parking space, taking into account the statutory
ratio.
Clause 6 requires owners of private car parks and owners/operators of
public car parks to lodge an estimate of the number of leviable
parking spaces they expect to be in their car park in 2006 with the
Commissioner on or before 21 January 2006.
Clause 7 requires the Commissioner to make a final adjustment of the levy
payable for 2006 based on the actual number of leviable parking
spaces in 2006.
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