11/03/2026
🚗 Buying or selling property with car parks in Melbourne?
There’s a tax many people don’t see coming.
From 1 January 2026, the congestion levy has expanded and increased — meaning more Melbourne properties with parking spaces may now attract a significant annual charge.
If you’re dealing with commercial or mixed-use property, it’s something that needs careful attention during conveyancing.
Here are a few key things property owners and buyers should understand:
1️⃣ The levy can be substantial
For 2026, the congestion levy can be:
• $3,030 per parking space in Category 1 areas
• $2,150 per parking space in Category 2 areas
That means a property with 10 parking spaces could face over $30,000 per year in levy liability.
2️⃣ “Parking spaces” include more than marked bays
Even unmarked areas used for parking can count as parking spaces under the law. If the spaces cannot be easily counted, the legislation allows them to be deemed based on area size.
3️⃣ Residential parking is usually excluded
Spaces used exclusively for residential purposes are generally not subject to the levy.
However, if a residential owner rents a parking space to a third party, the levy may apply.
4️⃣ Disclosure in a Section 32 is critical
If the levy applies and it is not disclosed correctly in the Section 32 Statement, a purchaser may have the right to terminate the contract before settlement.
5️⃣ New owners must register with the SRO
Purchasers of land with levy-affected parking spaces must register with the State Revenue Office within one month of settlement, or penalties can apply.
💡 The key takeaway:
Parking spaces can carry significant tax and disclosure consequences in property transactions. Identifying them early can avoid disputes, penalties, and failed settlements.
If you're buying, selling, or developing property with off-street parking in Melbourne, it’s worth getting the legal details right from the start.
📩 If you have questions about congestion levy obligations or property transactions, feel free to reach out to our team.
