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Compliance

An overview of compliance activities undertaken by Revenue NSW to ensure liable owners are paying the correct amount of parking space levy.

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Compliance objectives

Revenue NSW relies on your honesty to voluntarily self-assess and comply with your levy obligations.

The parking space levy compliance approach aims to:

  • encourage and assist you to comply by providing information and tools
  • detect and deter non-compliance by taking a targeted, risk-based approach
  • provide a level playing field and minimise disruption to you and your business.

Parking space levy compliance activities

We ensure compliance using the following strategies:

  • using data to ensure correct exemptions are claimed
  • liaising with property owners, to educate them on their responsibilities
    • conducting field audits, which include investigating property owners, to validate their methods for determining exemptions
    • investigating registered customers, where it appears they are overstating exemptions, including those who continually claim large exemptions
  • identifying and contacting owners who have not registered with us for parking space levy.

How we select customers for audit

Revenue NSW administers parking space levy on behalf of Transport for NSW. Our compliance program ensures liable owners correctly pay the levy.

The most common reasons why we select customers for audit include:

  • not registering liable car spaces located in leviable districts
  • failing to lodge an annual return by the due date (1 September)
  • failing to pay the levy by the due date
  • paying the levy without lodging the annual return
  • incorrectly claiming exemptions
  • failing to notify us when a car space is sold
  • not realising that the levy is applicable to all residential and non-residential off-street parking spaces within the leviable districts
  • not realising the current year levy is based on how the leviable car spaces were used during the previous tax year
  • claiming a residential exemption when sub-leasing residential car spaces.

What happens if you are selected for an audit

We will issue you a notice of investigation letter that formally confirms that an audit has commenced and includes details of the information you need to provide, and how to provide it.

If you need to clarify anything, contact your case officer. Your case officer’s contact details are on the notice of investigation letter.

What happens next?

The case officer will review the information provided.

We may request further supporting information and liaise with you to clarify information.

We may also set up a meeting with you to clarify information, discuss any issues and give you an opportunity to provide more information before the conclusion of the audit.

An audit may result in:

  • no further action – where no errors are found
  • the issuing of a notice of assessment – where errors have been identified resulting in less or more levy payable;
  • the issuing of a notice of assessment with a refund being due – where an overpayment has occurred.

You will then be sent a decision letter outlining the audit outcome, formally referred to as the finalisation outcome.

The finalisation outcome formally concludes the audit.

Interest and penalties

You may be charged interest and penalties depending on the outcome of the audit and the circumstances of any tax shortfall. For more information please refer to interest and penalty tax.

Objections and reviews

Please see information on objections and reviews for advice on what you should do if you disagree with our assessment.

Need more information

For more information, contact us.