The Victorian Government proposed changes to the congestion levy, set to take effect from 1 January 2026, pending Royal Assent. These updates may impact properties with parking spaces in inner-city and surrounding areas.

Category 2 Zone Expansion
From 1 January 2026, the Category 2 levy zone will extend eastwards to include additional inner-eastern suburbs along Hoddle Street and Punt Road. These areas are similar in proximity to Melbourne’s CBD as existing levy zones.

Category 1 Levy Increase
The Category 1 rate will rise to approximately $3,030 per parking space in 2026, up from $1,750 in 2025.

Category 2 Levy Increase
The Category 2 rate will increase to approximately $2,150 per parking space in 2026, up from $1,240 in 2025.

What This Means for You
The levy assessment is based on how parking spaces are used during the preceding calendar year. This means your 2025 parking space usage will directly affect your 2026 return.

If you would like to discuss these proposed changes and how they might impact your property, our team is here to assist. Please don’t hesitate to reach out for tailored advice.