October 3, 2016
Infrastructure Victoria released its draft infrastructure strategy for Victoria which included a recommendation to introduce a traffic congestion tax. The question I have is what impact has the curren Congestion Levy had on reducing traffic coming into the city?
Yes, we already have a congestion tax / levy!!
The current congestion levy was introduced by the Victorian State Government back in 2006. It was a levy aimed at taxing long term parking in CBD car parks to reduce people driving into the city in peak times.
The congestion levy started at $400 a bay in the 1st year and it increased to $800 a bay in the 2nd year. In 2016 it has increased to $1,360 per bay for category 1. Yes, you guessed it, the Victorian State Government introduced a category 2 levy. The category 2 levy is $960 per bay and was introduced this year in suburbs like Albert Park, St Kilda and Northern Suburbs of Carlton, Fitzroy, Nth Melbourne and Kensington.
The Victorian State Government 2016/17 budget includes revenue of $123.4 mllion to be collected through the Congestion Levy. $5m per annum goes to the City of Melbourne which is why we probably don’t hear too much complaining from them.
So, Infrastructure Victoria, are we deleting a congestion levy that has had no impact on reducing traffic congestion in Melbourne for a solution that actually works, or are you recommending to have a tax on a levy?
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