Wednesday, 28 May 2025

Congestion levy

Rachel WESTAWAY (Prahran) (14:28): My question is to the Premier. Labor’s increased congestion levy will push the average cost to park around Melbourne and surrounding suburbs up by thousands of dollars a year. Businesses are already under pressure from Labor’s mismanagement of crime and tax increases, including along Chapel Street. Why is Labor slugging Melbourne workers, hitting small businesses in places like the CBD and Chapel Street, during a cost-of-living crisis?

Members interjecting.

Bridget Vallence: On a point of order, Speaker, the member for Frankston said a really disparaging remark, and I would ask you to ask him to withdraw.

The SPEAKER: Member for Frankston, is that accusation correct?

Paul Edbrooke: That accusation is incorrect.

The SPEAKER: I will review the footage.

Jacinta ALLAN (Bendigo East – Premier) (14:29): I thank the member for Prahran for her question, and actually this provides me with an opportunity to provide some information to both the member for Prahran and the house about the work that the government is doing to get more cars off the road, bring more people in and out of the city on public transport and, yes, look at the congestion levy arrangements here in this state to ensure that they are equivalent to and consistent with the rates that are currently set in Sydney. There is work that is being led by the Treasurer on this matter, who is working and consulting with the relevant industry groups. But one of the challenges of getting people in and out of the CBD and the inner city is of course the availability of road space and the availability of getting cars off our roads, because we know a big choke on productivity is getting stuck in traffic and road congestion. One of the ways to address that is, as I have said, the congestion levy, which has been in place for some time, and we are looking at equalising those arrangements with Sydney.

But of course one of the substantial ways of getting cars off our roads is the opening of the Metro Tunnel later this year, because the Metro Tunnel will have the capacity to bring half a million additional people in and out of the city every single week. When you have a comprehensive approach to addressing the congestion challenges in the city –

Bridget Vallence: On a point of order, Speaker, on relevance, it is a very narrow question about taxing Victorians more in a cost-of-living crisis with a congestion levy. I would ask you to ask the Premier to come back to that question.

The SPEAKER: The Premier was being relevant to the question.

Jacinta ALLAN: You have to look at the different mechanisms and levers you have available as a government to address this important issue, because I know from talking to small businesses in the city and the inner suburbs that having people get to their front door is important to them. By substantially increasing public transport and making public transport free for kids from next year – that will make it easy as well – we are recognising that with the long-established mechanism of a congestion levy, which has been in place in Melbourne for some time and has been in place in Sydney for some time, there is the opportunity to equalise those rates with Sydney but at the same time substantially invest in our public transport network, making it free for kids, making it free for seniors on the weekend and increasing substantially the number of services that are coming in and out of the city every single day. I appreciate those opposite do not understand this. They took money out of the Metro Tunnel. They have opposed the Metro Tunnel at every opportunity. Well, it will open later this year.

Bridget Vallence: On a point of order, Speaker, not only is the Premier required to be factual, she is also required to be relevant to the question. The question is very narrow about her hikes to the congestion levy in the city and Chapel Street.

The SPEAKER: The Premier was being relevant. The Premier has concluded her answer.

Rachel WESTAWAY (Prahran) (14:33): The Premier spoke about the fact that there is already an existing levy. The levy currently makes up 40 to 50 per cent of the average price of parking. It is going to go up 80 per cent. How much more will Victorians pay because of this tax increase?

Jacinta ALLAN (Bendigo East – Premier) (14:33): I am going to politely disagree with the member for Prahran and the statement in her question and just reiterate the point that I made earlier: that we are harmonising our congestion levy rates to be consistent with Sydney. It is a levy that has been in place for some time. Those opposite did not find it so offensive when they were in government, but that is okay. Those opposite have said a lot this week about how they would reduce revenue but have not said what they would cut – not one thing about what they would cut, what they would close, what they would privatise.

Danny O’Brien: On a point of order, Speaker, on debating, the Premier is clearly debating the question. There is a $3 billion cut in her own budget.

The SPEAKER: Points of order need to be raised in the correct manner. I am becoming a little disappointed with the way points of order are being raised in the house. I encourage members to read the standing orders. Premier, I ask you to come back to the question.

Jacinta ALLAN: We will continue to invest in frontline services, provide real cost-of-living support and also invest in public transport so more people can get to Prahran or Preston on our great public transport network.

Bridget Vallence: On a point of order, Speaker, on relevance, it is a very narrow question about how much more Victorians will pay because of this tax increase. It is $308 million in the budget update. I would ask you to ask the Premier to be relevant to the question.

The SPEAKER: I remind the Manager of Opposition Business of the correct way to raise a point of order. The Premier has concluded her answer.