How is the congestion levy changing from 1 January 2026?

Description

This video gives you an overview of the changes to the congestion levy taking effect on 1 January 2026.

Transcript

The congestion levy applies to off-street private and public car parking spaces across parts of inner Melbourne.

The levy aims to reduce traffic in central Melbourne by encouraging people to use public transport.

The levy is charged each calendar year on parking spaces in 2 specified areas: the Category 1 area and the Category 2 area.

A different levy amount applies to each area.

From the 1st of January 2026, the congestion levy is changing.

The Category 2 area expands eastwards to capture inner eastern suburbs along Hoddle Street and Punt Road, which are similarly close to Melbourne's CBD as other suburbs already subject to the levy.

Congestion levy rates will also increase from the 1st of January 2026.

The Category 1 rate becomes $3,030, and the Category 2 rate becomes $2,150.

The levy assessment is calculated on how parking spaces were used in the preceding calendar year.

This means how you use your parking spaces during the 2025 calendar year will contribute to your 2026 return and assessment.

To learn more about how the congestion levy is changing, including a map of the expanded Category 2 area, visit our website: sro.vic.gov.au/carparks.