The Parking Space Levy (PSL), commenced in 1992, is part of the NSW Government's efforts to alleviate congestion in major business areas across Sydney. By discouraging car usage in leviable districts and promoting public transport, the PSL funds approximately $100 million annually for vital infrastructure enhancements like commuter car parks and interchanges. This initiative impacts owners of private parking spaces including those within strata communities. that fall into the catchment areas.
What is the Parking Space Levy?
The PSL is a tax on parking spaces in designated areas of Sydney, aimed at reducing congestion and encouraging the use of public transport. It applies to both public and private parking spaces, including those provided by businesses and commercial strata properties. Owners should check with the Office of State Revenue to see if they are liable to pay the levy if in doubt.
Catchment Area
The PSL applies to leviable premises that fall into two catgories:
Category 1: Sydney's CBD, North Sydney/Milsons Point
Category 2: Bondi Junction, Chatswood, Parramatta and St Leonards
Regulations
Businesses /Owners that provide parking spaces in designated areas of Sydney must register for the parking space levy and submit quarterly returns to the NSW Office of State Revenue. Failure to comply with these regulations can result in penalties and fines.
How Much Does the PSL Cost?
PSL rates are indexed annually to movements in the Consumer Price Index (All Group Index) for Sydney. From 1 July 2023 the Parking Space Levy rates are:
$2,800 per space in Category 1 areas
$1,000 per space in Category 2 areas
Are There Exemptions?
Certain parking spaces are exempt from the levy, including:
Bicycle or motorcycle parking
Parking for residents who reside on the premises or adjoining premises
Parking for holders of mobility parking scheme authority
Parking space for loading or unloading goods or passengers
Parking for casual service providers e.g. Courier Parking Only
Free parking for mobile cranes, forklifts, tractors, or loaders
Free parking for emergency vehicles (ambulance, fire brigade, police)
Free parking for delivery or service vehicles
Parking for vehicles of local government council
Parking for vehicles of religious organisations or charities
Unleased tenant parking spaces
Unused casual parking spaces
Additional exemptions apply for parking spaces in Category 2 areas:
Customer parking for a retail shop
Employee parking for a retail shop
Guest or customer parking for a hotel or motel
Parking for members and guests of a registered club
Customer parking for a restaurant
Patient parking for a medical center
Customer parking for a car sales establishment, servicing center, or car wash
Client and guest parking for a funeral parlor
Parking for vehicles displayed or stored for sale or hire
How are PSL Funds Used?
The PSL funds are collected by State Revenue and allocated to the Public Transport Fund, as mandated by the Parking Space Levy Act 2009. These funds are designated for specific purposes, including supporting public transport services, facilitating access to public transport within leviable districts, and initiatives for commuter information dissemination, including technological advancements.
Annually, the PSL raises approximately $100 million, primarily utilised for public transport infrastructure projects such as commuter car parks, transport interchanges, and light rail lines. Notable projects include Sydney's Light Rail where the PSL contributed almost $190 million.
The Parking Space Levy (PSL) plays a significant role in the effort to reduce congestion and promote the use of public transport in key business districts across Sydney. For strata owners of commercial properties and mixed-use strata communities within the catchment areas, understanding the implications of the PSL is crucial. Not only does it impact transportation choices and accessibility, but it also influences compliance regulations and potential costs associated with parking spaces.
At Compass Strata, we understand the complexities of strata management, including the implications of government regulations such as the Parking Space Levy. Whether you're seeking clarification on compliance requirements or need assistance in managing your strata property effectively, we're your trusted partner every step of the way. Contact us today to learn more about how we can help you navigate the complexities of strata management and achieve success.
