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If you own a parking space in a leviable district of NSW, you may need to pay an annual levy to the NSW Government – unless an exemption applies based on how the parking space is used.
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Purpose of parking space levy
Parking space levy is an annual charge that applies to off-street parking spaces in certain metropolitan areas. Because it is a statutory levy, payment is required by law. The levy is established under an Act of Parliament and administered by the government, similar to a tax.
This levy was introduced in key business districts to help discourage car use and ease traffic congestion. The revenue collected from the levy is invested towards building and upgrading public transport infrastructure across NSW.
Understanding parking space levy legislation
Parking space levy is a state-based levy, it is not managed by the Commonwealth Government or any of its agencies, such as the Australian Taxation Office or Services Australia.
Revenue NSW is responsible for collecting parking space levy in NSW in accordance with several pieces of legislation, including:
Parking Space Levy Regulation 2019 which provides detailed ‘rules’ for implementing the Act, including exemptions, leviable areas and administrative processes
Taxation Administration Act 1996 which provides a uniform framework for administering and enforcing NSW state taxes. It sets out rules for assessing tax liabilities, collecting and recovering unpaid taxes, applying interest and penalties, handling objections and reviews, and granting investigative powers. Its goal is to ensure fair, consistent, and efficient tax administration across all NSW tax laws, including levies like parking space levy.
Districts where the levy applies
Parking space levy applies to off-street parking spaces located within designated metropolitan districts. These are called 'leviable districts' and are grouped into two categories.
Each category has different levy rates and a different number of available exemptions.
Category 1 districts
Sydney CBD
North Sydney
Category 2 districts
Bondi Junction
Chatswood
Parramatta
St Leonards
The levy only applies to specific mapped areas. Use the Parking Space Levy Property Lookup Tool to check whether your parking space is within a leviable district.
Who pays parking space levy
You may have to pay the annual levy if:
you own an off-street parking space located in a leviable district, and
the parking space is used for a non-exempt purpose.
Who may be exempt from parking space levy
A parking space is exempt from the levy if it is exclusively set aside and used for a purpose listed under the exemption eligibility criteria for your Category district.
If you own a parking space in a leviable district and meet the exemption eligibility criteria, you can apply for an exemption in Parking Space Levy Online Services. You may be asked to provide evidence to support your exemption application.
Annual parking space levy obligations
You must pay your parking space levy each year you are liable.
If you own a parking space within a leviable district, you are required to lodge an annual return by 1 September each year.
Depending on the information included in your lodgement, some returns will be processed straight away, while others may require a more detailed review by Revenue NSW before an assessment is issued.
The assessment notice is issued based on the information self-reported by the property owner. The assessment will confirm the levy amount you are required to pay for the year. Read more about assessment notices for parking space levy.
How much is parking space levy in NSW?
How much parking space levy you pay depends on whether the parking space is located in a Category 1 or Category 2 area.
Levy rates are published in the NSW Government Gazette around 30 June every year, and are indexed annually based on the Consumer Price Index (CPI).
Parking space levy when buying or selling property
If you own a parking space in a leviable district, you must notify Revenue NSW of any change in ownership.
Buying property that includes a parking space within a leviable area
When you purchase a parking space within a leviable district, you must register your property ownership in Parking Space Levy Online Services as soon as you become the owner of the space. If you purchase a parking space during the year, your liability will begin from 1 July after acquisition.
Selling property that includes a parking space within a leviable area
When you dispose of a parking space within a leviable district, you must lodge a return in Parking Space Levy Online Services.
Failure to advise Revenue NSW of the sale means the levy liability remains in your name, and you will continue to receive annual assessment notices.
The levy is not calculated on a pro rata basis. This means the amount you pay does not decrease if you own the parking space for only part of the tax year. For example, even if you sell the parking space in September, you are still required to pay the full levy.
Outstanding balances do not transfer with the property. They remain the responsibility of the taxpayer who owned the parking space when the liability arose.
Video: Overview of parking space levy
This video provides an overview of parking space levy, including leviable districts, exemptions and key dates.
