If you own a car space which you are renting out, you may be required to pay the congestion levy. This will depend on how the car space is used. 

Letting others use your car space

Non-exempt purposes

If the car space is used for a non-exempt purpose (e.g. the person using the car space parks the car while at work in the CBD) you must register for, and pay, the congestion levy for the relevant year. This is the case whether you rent out the car space directly or through an online home-based car parking listing website. 

Exempt purposes

If the car space is used exclusively for an exempt purpose (e.g. you make the car space available for a fee to someone who lives in the same building and uses the space for residential purposes), then you are not required to pay the congestion levy.

Combination of both

The congestion levy applies if the car space is used for both exempt and non-exempt purposes. This means that if you use your car space for residential purposes during weekends, but you make it available for a fee to someone who uses the space while they are at work from Mondays to Fridays, the congestion levy would still apply. You may qualify for a part-year concession, however, depending on whether the car space is in a private or public car park.

If a car space is located in a private car park, a part-year concession is only available if it is used for an exempt purpose for more than 30 days in a calendar year. If it is located in a public car park, the part-year concession is available even if the space is used for an exempt purpose for only one day.   

Passing on the levy

If the levy applies to the car space that you are leasing out, the cost of the levy may be incorporated into the fee that you charge, so that it ultimately is passed on to the end-user of the car space. 

Sub-letting a car space

If you are sub-letting out your car space for a non-exempt purpose, the owner of the car space will be liable to pay the congestion levy. The owner may, however, request compensation for the cost of the levy from you.

For example, if you are a tenant of a residential apartment or office space and you rent out the attached car space to a CBD commuter, your landlord (as owner of the car space) will have to pay the congestion levy. However, your landlord may be entitled to ask for compensation for the cost of the levy. You may, in turn, incorporate the cost of the levy into the fee that you charge the end user of the car space.