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Exemptions

A summary of the exemptions applicable to parking space levy, the eligibility criteria and what documents you may need to supply during the application process.

Last updated:

Preparing for the 2025-2026 parking space levy year

The Parking Space Levy Regulations have been updated with new and revised exemptions, effective from 1 July 2025. Key changes include:

  • updated signage requirements
  • clearer definitions, and
  • additional requirements.

Read more about preparing for the 2025-2026 parking space levy year.

On this page

Overview

The Parking Space Levy Regulations 2019 outline the circumstances in which parking spaces may be exempt from the levy.

You must apply for any exemptions annually by 1 September as part of your annual return. If you do not lodge a return, a notice of assessment may be issued with no exemptions applied.

Exempt parking spaces: Categories 1 and 2

A leviable parking space in a Category 1 or Category 2 area is exempt while it is set aside exclusively for one or more of the following purposes.

Parking of bicycles or motorcycles

To be eligible the car space must be:

  • exclusively set aside for the parking of bicycles or motorbikes
  • clearly signposted as bicycle or motorcycle parking only.

If available, bicycle racks must be permanently fixed to the ground.

Parking by persons who reside on the premises or on adjoining premises

Car space is owner occupied and within the building:

To be eligible the car space must be:

  • exempt for land tax under a principal place of residence exemption.

Car space is on adjoining premises:

To be eligible the car space must be:

  • confirmed by Revenue NSW as ‘adjoining’ to the residence.

Car space is within the building and property tenanted

To be eligible the car space must be:

  • included in the terms of a formal tenancy agreement.
Parking by persons who hold a mobility parking scheme authority

To be eligible the car space must be:

  • exclusively set aside for this purpose
  • clearly signposted as disabled parking only - a valid Mobility Parking Scheme (MPS) permit must be displayed in the vehicle.
Parking for the purpose of loading or unloading goods or passengers

To be eligible the car space must be:

  • exclusively set aside for this purpose
  • clearly signposted as loading/unloading only
  • if the building has a designated loading dock, supporting evidence must be provided if a car space is still being used for the same purpose.
Parking by persons who provide services to the premises on a casual basis

To be eligible the car space must be:

  • exclusively set aside for this purpose
  • clearly signposted, for example ‘Courier Parking Only’.
Parking of a mobile crane, a forklift truck, a tractor or a front-end loader without charge

To be eligible the car space must be:

  • exclusively set aside for this purpose
  • free of charge
  • if the car space is included in the lease agreement, the owner cannot claim the exemption as there is a charge to use the car space.
Parking of an ambulance, fire brigade motor vehicle or police motor vehicle without charge

To be eligible the car space must be:

  • used for garaging the vehicle overnight
  • exclusively set aside for this purpose
  • free of charge
  • if the car space is included in the lease agreement, the owner cannot claim the exemption as there is a charge to use the car space. The owner must provide a copy of the lease agreement to show whether or not the car space is included.
Parking of a motor vehicle used only for carrying out deliveries or the provision of services without charge

To be eligible the car space must be:

  • used for garaging the vehicle overnight
  • exclusively set aside for this purpose
  • free of charge.
Parking of a vehicle owned or occupied by the council of a local government area

To be eligible the car space must be:

  • exclusively set aside for this purpose
  • must be available to the public (there can be a time limit on use)
  • free of charge
  • off-street parking.

The exemption does not apply if officers or employees of the local council use or access the parking space.

Parking of a vehicle owned or occupied by a religious organisation or charity
  • a religious body or religious organisation under section 26 of the Marriage Act 1961, or
  • a religious body within a denomination, or
  • a public charity or public benevolent institution.

To be eligible the car space must be:

  • exclusively set aside for this purpose
  • free of charge.

If the building is owned by a charity and sub-leased, the car space is not exempt as there is a charge involved.

Unleased tenant's parking space

To be eligible the car space must be:

  • unavailable for use as a parking space, except by the lessee and
  • a space that has no such lease or license in force.

The exemption may be claimed for the number of days the parking space:

  • was not subject to a lease/licence under which a tenant had exclusive use of the space and
  • was not available for use except under such a lease or license.

During this period when the lot or office space is untenanted, the parking space cannot be offered to anyone otherwise the parking space will become liable.

The "unlet/unused" exemption applies to parking spaces that remain vacant or unused despite the property being advertised for lease.

The exemption does not apply to parking space/s intentionally left vacant or unleased.

Read more about how the exemption does not apply in the Unleased Tenant’s Parking Space Exemption Guidelines.

Unused casual parking space

To be eligible the car space must be:

  • Set aside for use by the public for the parking of motor vehicles (e.g. by a car park operator) but remains unused for that purpose.

The Chief Commissioner has set out guidelines for unused casual parking space with approval of the Minister of Transport in accordance with Section 12(1)(b) of the Parking Space Levy Act which provides guidance as to whether a parking space is or is not exempt from PSL  as an unused casual parking space.

Additional exemptions: Category 2 districts

A parking space on leviable premises in a Category 2 district is exempt only while it is set aside and used for the following specific purposes, and only during the time the intended users are actively using the premises.

Parking by customers of a retail shop

To be eligible the car space must be:

  • exclusively set aside for retail customer parking
  • easily accessible for general public and not secured by a gate or access key
  • clearly signposted as customer parking only
  • included in a Retail Lease agreement, if applicable.

See the Retail Leases Act 1994 for the definition of retail and the required categories.

Parking by employees of a retail shop

To be eligible the car space must be:

A car space designated for employees at the following shopping centres:

  • Eastgate Shopping Centre
  • Westfield Bondi Junction Shopping Centre
  • Chatswood Chase Shopping Centre
  • Chatswood Myer Department Store
  • Westfield Chatswood Shopping Centre
  • Westfield Parramatta Shopping Centre.
Parking by guests or customers of a hotel or motel

Car space owned by a hotel/motel must be:

  • exclusively set aside for the parking of a guest occupying a hotel/motel room located on the same premises as the parking space
  • exclusively set aside for the parking of a guest attending a function in a hotel/motel located on the same premises as the parking space.

Car space owned by a service apartment must be:

  • exclusively set aside for the parking of a guest occupying a serviced apartment located on the same premises as the parking space.
Parking by members and guests of members of a registered club

To be eligible the car space must be:

  • exclusively set aside for members and guests parking
  • easily accessible for general public and not secured by a gate or access key
  • clearly signposted as customer parking only.
Parking by customers of a restaurant

To be eligible the car space must be:

  • exclusively set aside for restaurant customers
  • easily accessible for general public and not secured by a gate or access key
  • clearly signposted as customer parking only.
Parking by patients of a medical centre

To be eligible the car space must be:

  • exclusively set aside for patient parking
  • easily accessible for general public and not secured by a gate or access key
  • clearly signposted as medical centre patient parking only.
Parking by customers of a car sales establishment, car servicing or repair centre, or car wash

To be eligible the car space must be:

  • exclusively set aside for parking by customers of a car sales establishment, car servicing, repair centre or car wash.

For example, car yards, rental car vehicles, car washes, business servicing vehicles.

Parking by clients and guests of clients of a funeral parlour

To be eligible the car space must be:

  • exclusively set aside for clients and guests of clients of a funeral parlour.

This includes hearses and funeral coaches.

Parking of vehicles that are displayed or stored on the premises for the purpose of being offered for sale or hire

To be eligible the car space must be:

  • exclusively set aside for parking of vehicles that are displayed or stored on the premises for the purpose of being offered for sale or hire.

For example, car yards.

Supporting documents

This section provides information on documents you may need to supply when claiming exemptions. Please note that this is not an exhaustive list. Supporting documents may include:

  • residential/commercial tenancy agreement
  • current and historical tenancy list
  • evidence such as utility bills, phone bill, home/contents insurance
  • photograph of the mobility permit being used
  • copy of the current and/or historical lease if the premises is subject to lease agreement
  • copies of the floor plan, DA approvals and strata management agreements etc
  • evidence to show attempts to lease out the property e.g. real estate listing
  • evidence that the owner of the vehicle is the owner or occupier of the premises
  • evidence/information of the services being provided to the premises/building
  • details of the vehicle registration
  • photographs of building car parking entrance and signage
  • photographs of signage promoting causal parking to the public
  • a record generated from a parking management system or software showing total number of casual parking spaces including spaces unused on each day
  • copy of the contracts with car parking management companies.

Claiming an exemption

You can claim an exemption during the annual return process.  During the annual return process, you will be required to provide Revenue NSW with information regarding the use of your parking space during the previous tax year.

To claim exemptions for prior years, send an email to us providing the details of your return and supporting evidence.

Lodge an annual return

Need more information

For more information, contact us.