Exemptions for the congestion levy
Eligibility based on ownership, use and location of spaces.
Key information
You can claim an exemption if a parking space is exempt for a full calendar year.
Exemptions depend on:
- how the space is used
- who owns the space
- where the space is located.
If a parking space is only exempt for part of the calendar year, you may be eligible for a part-year concession.
See how to apply for a congestion levy exemption.
Use of the parking space
Residential parking
From 1 January 2026, a space used exclusively for parking for residential purposes is exempt. For example, a parking space at your home.
Before 1 January 2026
Before 1 January 2026, a space used exclusively by a resident to park their car while they were at home was exempt. The exemption applied whether the space was owned by the resident or leased.
The exemption did not apply if a resident rented out their parking space to a commuter or for another non-residential purpose. Learn more about renting out a parking space.
Guest parking at hotels, apartments or similar
From 1 January 2026, a space used exclusively for parking for residential purposes – including a temporary stay in a hotel, serviced apartment or club that provides accommodation – is exempt.
Before 1 January 2026
Before 1 January 2026, parking spaces provided by a hotel, serviced apartment or club to guests with their accommodation were treated as being for residential purposes and were exempt.
The exemption only applied to parking spaces used exclusively by overnight guests. If a parking space was used by people who were not staying overnight, such as conference attendees, the exemption did not apply.
Parking for government schools
From 1 January 2026, parking spaces located on government school or government school boarding premises are exempt if those parking spaces are provided without charge.
Parking for maintenance services and loading bays
A parking space is exempt if it is provided free of charge and used exclusively by a person who is:
- providing maintenance services to the owner or occupier of the premises on which the parking space is located, or
- engaged in the loading or unloading of goods or passengers.
Visitor parking
A parking space is exempt if it is used exclusively by:
- clients, patients or consultants of the person who provides the parking space (whether that is the owner of the space or a person who controls the parking space under an agreement with the owner), or
- a person who is visiting the premises on which the parking space is located, if the premises are not the person’s usual place of business or work.
The exemption does not apply if the person providing the parking space charges visitors a fee for parking in the space.
Example
A medical practice has designated parking spaces for the exclusive use of visitors and patients of the medical practice. The parking spaces are free of charge. These spaces are exempt.
However, if staff of the medical practice or visitors of nearby businesses use these parking spaces, the visitor parking exemption does not apply.
Hospital visitor parking
This exemption only applies to parking spaces that are owned by or leased to a hospital and used exclusively by hospital patients and their visitors. The exemption applies even if a fee is charged.
This exemption does not apply to spaces used by hospital employees, although other exemptions may apply.
Parking for emergency vehicles
A parking space is exempt if it is set aside or used exclusively by:
- police vehicles
- ambulances
- fire service units
- State Emergency Service (SES) units
- Australian Defence Force vehicles, while members are on march or duty
- vehicles used for emergency services under authority of an Act or the state.
The parking space can be provided by any person or organisation.
The exemption does not apply if a fee is charged.
Example
A major sporting venue sets aside parking spaces for the exclusive use of police vehicles. The exemption applies if the vehicles are registered in the name of the emergency service.
The exemption does not apply to vehicles owned by employees of an emergency service.
Parking for people attending special events
This exemption only applies to parking spaces or an area which is:
- used exclusively for the parking in conjunction with a particular event
- not available for parking at all other times.
The exemption does not apply if a fee is charged.
Disabled parking
A parking space is exempt if it is set aside or used exclusively by persons displaying a disabled person’s parking authority in their vehicle.
The parking permit must be issued under:
- clause 2 of Schedule 11 to the Local Government Act 1989, or
- clause 3 of Schedule 4 to the Road Management Act 2004.
Parking for shift workers
The exemption for shift workers applies to parking spaces used exclusively by employees working shifts in a business that operates 24 hours a day on weekdays.
The spaces must only be used by employees working shifts, for the purpose of attending work.
The exemption does not cover spaces used by employees working regular hours within the business.
If only part of a business operates 24 hours a day, the parking spaces must be used solely by employees working shifts in the part of the business that operates 24 hours a day.
Example
A bank has an IT department and a foreign exchange desk, which both operate 24 hours a day. The bank’s overall business is not a 24-hour operation.
Parking spaces used exclusively by employees of the IT department and the foreign exchange desk qualify for the exemption, if they are employed on shifts.
However, the exemption does not apply to parking spaces used by banking staff who only work during business hours, or work in other areas of the bank that do not operate 24 hours a day.
Parking for fleet vehicles
A parking space is exempt if it is used exclusively for parking fleet vehicles overnight.
A fleet vehicle is a vehicle provided by an employer for staff or members of an organisation to use in the normal operations of a business. An organisation may have just one fleet vehicle.
The exemption:
- applies to a parking space used to park a fleet vehicle, even if it is occasionally taken home by an employee
- does not apply to cars which are assigned to individuals as their personal vehicles.
Bus layovers
A parking space is exempt if it is used exclusively for parking passenger buses while they are not in service.
Car sales display spaces, car service spaces or car hire spaces
A parking space is exempt if it is used exclusively for:
- displaying or storing vehicles which are for sale or hire
- parking vehicles which are being serviced or repaired on the premises, or on adjoining premises.
The exemption does not apply to parking spaces used by employees for parking their personal vehicles while they are at work.
Ownership of the parking space
Parking spaces owned by particular organisations
A parking space is exempt if it is owned by one of these types of organisations:
- Municipal councils.
- Religious bodies.
- Charitable or public benevolent institutions.
- Hospitals.
- Universities.
- Libraries.
- Museums.
The exemption does not apply if a fee is charged.
Parking spaces owned by consulates and consular employees
A parking space is exempt if it is owned by a consulate, a consular officer, a consular employee or a family member residing in the same house as that person.
Location of the parking space
Parking in the Melbourne and Olympic Parks
An exemption applies to parking spaces in a public car park made available to the general public on a casual basis in the Melbourne and Olympic Parks.
Parking in the Yarra Park Reserve, at Melbourne Zoo and at Abbotsford Convent
An exemption applies to parking spaces:
- in the Yarra Park Reserve
- at Melbourne Zoo and within 200 metres of the zoo
- on land owned by the Abbotsford Convent Foundation.