Thursday, 14 August 2025

Congestion levy

Bev McARTHUR (Western Victoria) (17:45): (1855) My adjournment is directed to the Treasurer, and the action I seek is that the Treasurer join me in meeting with the many councils that will be affected by the government’s proposed congestion levy hike. Welcome to the most taxed state in the nation. In Victoria there is a tax for everything and for everyone: schools and GPs, tourists and home owners, volunteers and farmers. Now there is a massive tax hike that is set to hit commuters right here in Melbourne. It is called the congestion tax, which will increase by nearly 80 per cent. While a bill is yet to be presented to the Parliament, the government announced their intention to raise it late last year and quietly inserted it into the recent state budget. True to form, there was no consultation, no consent and no collaboration with either local government or industry.

Cath Evans of the Property Council of Australia rightly pointed out that this move will:

… exacerbate the already challenging economic conditions in Victoria, and impose significant financial strain on businesses and property owners, without offering a clear solution to the issue of traffic congestion.

The City of Stonnington mayor said:

This levy is a tax on our community. It will make parking more expensive, add pressure to local businesses, and could force Council to cut back on the services our residents rely on …

I also acknowledge the work of my colleague in the other place Ms Westaway for her advocacy against this tax hike. Stonnington were forced to increase their parking fees from 1 July to prevent reduced revenue after tax or significantly higher parking fees in the third and fourth quarters of this year. While I deplore Labor and the Greens’ anti-car mantra, this is not about reducing congestion or pollution or any seemingly noble effort; it is about raising more money to pay for their budget blowouts, pure and simple. So how much will be ripped from the pockets of those who choose to drive into town? $222 million in the first financial year, increasing to $240 million three years after that. What assurances can the Treasurer give that this revenue will benefit the affected suburbs? Absolutely none.

At a time when Melbourne’s CBD has the highest office vacancy rates in the nation, fewer customers will visit our languishing shops, restaurants and cafes, and even fewer office workers will choose to work in town. Those who still decide to commute to the city in their cars will opt to use exempt street parking, which will no doubt increase in price due to heightened demand. So, Treasurer, on behalf of our businesses, commuters and councils, I call on you to rethink this tax before it unleashes even more damage on our city.