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Parking Space Levy

The Parking Space Levy (PSL) was introduced to discourage car use in major commercial centres, encourage use of public transport and to improve air quality. The PSL funds public transport infrastructure projects which make it easier and more convenient for people to access public transport services.

Every dollar raised is spent on building and maintaining bus, rail and ferry interchanges, commuter car parks, bus shelters, taxi stands, kiss and ride facilities, bicycle lockers, light rail systems and better passenger information and security systems. Recent projects include the Liverpool - Parramatta and North West Transitways, upgrade of the Parramatta Transport Interchange, building of new commuter carparks and the installation of secure bike lockers at railway stations.

The PSL applies to commercial parking spaces in Sydney's CBD, North Sydney/Milsons Point ($950 per space per annum) and at Parramatta, Bondi Junction, St Leonards and Chatswood ($470 per space per annum). See above for boundary maps.

Legislation requires that PSL revenue be used for the construction and maintenance of car and bicycle parking facilities, other public transport infrastructure and services. Essentially projects funded by the PSL must improve access to public transport.

For more information on payment and collection of the PSL visit the website site of the NSW Office of State Revenue.

Frequently Asked Questions

When and why was it introduced?

The PSL commenced on 1 July 1992. The object of the Act "... is to discourage car use in business districts by imposing a levy on off-street commercial and office parking spaces, and by using the revenue so raised to finance the development of infrastructure to encourage the use of public transport to and from those districts." (Parking Space Levy Act, 1992).

Some parking spaces are exempt from PSL, including where a space is used:

• as a designated space for persons with a disability;
• by a resident of the premises where the space is provided;
• for loading/unloading of goods or passengers;
• by a public charity or benevolent institution.

For full details of exemptions please see the Parking Space Levy Act 1992 and Parking Space Levy Regulation 1997 (link to copy of the Act and Regulation on the NSW Legislation website).

What area(s) does it cover?

The PSL was originally introduced in the Sydney CBD and North Sydney/Milsons Point.

In June 2000, the 'Parking Space Levy Amendment Act' extended the levy to four other business districts in Sydney. These are Bondi Junction, Chatswood, Parramatta and St Leonards. Each of these commercial areas is well served by public transport and has traffic congestion problems. These are referred to as Category 2 areas, while Sydney CBD and North Sydney/Milsons Point are referred to as Category 1 areas.

The rate of levy per space per year in Category 2 areas is set at $470, while the rate of levy per space in Category 1 areas is $950.

Which agency collects it and how?

PSL fees are collected by the NSW Office of State Revenue (OSR), a branch of the NSW State Treasury, on behalf of the NSW Ministry of Transport. An owner of off-street parking spaces within one of the six designated PSL areas must register with OSR, and make PSL payments to OSR on the basis of their liability.

How much money is raised by it?

In 2008-09, Parking Space Levy collections are estimated to be $47 million.

What exactly is the money spent on?

The aim of PSL is to discourage car use in business districts and to develop infrastructure to encourage the use of public transport to and from these areas. All PSL collections have been expended on these purposes.

Examples of projects upon which PSL funds have been spent to date are:

• interchanges - bus/rail, bus/ferry, commuter car parks;
• improving public transport infrastructure, such as the development of rapid bus-only transitway bus stations and light rail (tram service), which provide services within or to/from PSL areas;
• the improvement of electronic passenger information systems associated with the above-mentioned infrastructure.