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While many existing requirements remain unchanged, some changes may affect levy liability, exemption eligibility and how certain parking spaces are treated.
If you own, manage or operate parking spaces in a leviable area, review the changes to understand whether they affect you.
Key changes
The key changes include:
a new exclusion from parking space levy liability for certain residential premises
removal of guideline-based requirements for disability parking exemptions and identifying exempt parking spaces.
Residential parking exclusion
Eligible residential premises may now be excluded from the levy, reducing red tape by removing the need to claim a residential parking exemption each year. The exclusion may apply where:
all parking spaces within the premises, or within a clearly identifiable part of the premises, were set aside and used exclusively by residents who reside on the premises on every day of the previous tax year.
This includes residents of the premises or adjoining premises. Special rules apply to parking spaces within the Central Park precinct.
If you currently claim a residential parking exemption, no immediate lodgement action is required. Its administrative benefit will generally first be reflected when you lodge your annual return for the 2027–28 tax year from 1 July 2027.
If your parking spaces meet the requirements, you will no longer need to claim a residential parking exemption for those spaces.
An annual return needs to be lodged for these parking spaces.
Mixed-use property without separate parking areas
A property has fifteen parking spaces. Ten spaces are used by residents and five are used by customers or visitors. All spaces are within the same parking area.
The premises may not qualify for the residential parking exclusion because not all parking spaces are used exclusively by residents and there is no clearly separate resident-only parking area that can be assessed as a distinct part of the premises.
Mixed-use property with separate parking areas
A mixed-use property has two clearly separate parking areas. One area contains ten spaces used only by residents, and the other contains five spaces used by visitors and customers. The ten residential spaces were set aside and used only by residents on every day of the previous tax year.
The residential parking area may qualify as a non-leviable part of the premises. The owner would not need to claim a residential parking exemption for those spaces, however, an annual return will be required for the remaining five leviable parking spaces.
Changes in parking use during the year
A residential apartment building has ten parking spaces. The spaces are usually reserved for residents, but some were made available to visitors during the previous tax year.
The premises may not qualify for the residential parking exclusion because the spaces were not used exclusively by eligible residents on every day of the previous tax year. The owner may need to lodge an annual return and pay the levy or claim an exemption, if eligible.
Short-term accommodation or parking offered for rent
A residential property is used for short-term accommodation, such as a holiday rental or serviced apartment, or a parking space is separately advertised for rent through a third-party platform.
The premises will not qualify for the residential parking exclusion because it is available to temporary guests or other members of the public rather than being used exclusively by eligible residents. The owner needs to lodge an annual return, even if another exemption applies.
An annual return may not be required for these residential parking spaces.
All parking spaces used by residents
A residential building has ten parking spaces. All ten spaces were set aside and used only by residents of the building on every day of the previous tax year.
If the parking spaces meet all requirements, the premises may be excluded from the levy and the owner would not need to lodge an annual return or claim a residential parking exemption for those spaces.
Parking space used by a resident
Jane owns and lives in an apartment that includes a parking space. She uses the space for her own vehicle and does not lease it or make it available to visitors.
The parking space may qualify for the residential parking exclusion because it is used exclusively by a resident of the premises.
Disability parking exemption requirements
The remade Regulation removes the reference to guidelines for disability parking exemptions.
To qualify for the exemption, a parking space must be set aside and used exclusively by holders of a Mobility Parking Scheme authority and comply with the relevant accessibility parking standard.
If you claim a disability parking exemption, review the updated requirements and ensure your supporting evidence remains appropriate.
Service provider parking exemption changes
The service provider parking exemption is no longer limited to services provided on a casual basis.
However, it now expressly excludes parking spaces used by people who live or usually work on the premises. The maximum exemption limit remains ten parking spaces per premises.
If you currently claim this exemption, review your eligibility and supporting documentation.
Signage requirements for exempt parking spaces
The signage requirements for exempt parking spaces have been simplified.
References to prescriptive, guideline-based requirements have been removed. Exempt spaces must still be clearly identified in a way that is appropriate for the exemption type.
For most customers, this change should not require any action if their exempt parking spaces are already clearly identified.
Effective date
All changes, including the residential parking exclusion, apply from 28 August 2026.
For eligible residential parking, the administrative benefit of the exclusion will generally first be reflected when annual returns for the 2027–28 tax year are lodged from 1 July 2027.
Updated guidelines
Two updated guidelines for parking space levy have been published. They reflect changes to the unleased parking space and the unused casual parking space exemptions, following amendments to the Parking Space Levy Regulation 2026.
the updated eligibility requirements and confirm your supporting evidence remains appropriate
claim a service provider parking exemption
who uses the spaces, the purpose of their parking and whether your supporting documentation continues to support the exemption
are responsible for parking space levy compliance for a business or property owner
the changes relevant to the exemptions currently claimed
When lodging your 2027-28 annual return
If you currently claim a residential parking exemption, check whether your parking spaces meet the residential parking exclusion before lodging your annual return for the 2027–28 tax year from 1 July 2027.
