Concessions for the congestion levy
Eligibility based on the use and availability of spaces.
Key information
You may be able to claim a concession if a parking space was exempt, unavailable or did not exist for part of the previous year.
Additional concessions and relief are available in category 2 areas for:
- retail customer parking spaces
- social and affordable housing developments.
See how to apply for a congestion levy concession.
Part-year concession
If a parking space is used for both exempt and non-exempt purposes in a calendar year, you may qualify for a part-year concession.
Different rules apply to private or public car parks:
- Private car parks: you can only receive a part-year concession if the space is used for an exempt purpose for more than 30 days in a calendar year.
- Public car parks: you can receive a part-year concession if the space is used for an exempt purpose for only one day.
A parking space in either a public or private car park may be eligible for a concession if it did not exist as a parking space for part of the year preceding the assessment year. A parking space does not exist if it is permanently converted to another use.
Example
On 1 August 2025, 10 parking spaces were permanently converted into a garden to serve as a break-out or lunch area for employees. Those spaces ceased to exist as parking spaces.
That means the car park owner can apply for a part-year concession for those spaces from 1 August to 31 December when they lodge their annual return for the 2026 assessment year.
Private car parks
A private car park owner can apply for a concession if, for more than 30 days in the preceding year, a space:
- was exempt, or
- was not capable of being used, or
- did not exist as a parking space.
The 30 days do not have to be consecutive.
A space may be considered not capable of being used if it is temporarily used for another purpose. For example, if spaces are used for a farmers’ market, they cannot be used for parking cars while the market is running because tents and stalls occupy the spaces.
Example
A private car park is undergoing building works. A parking space cannot be used because it is occupied by construction equipment for the last 2 months of 2025.
The car park owner can apply for a part-year concession for that space for those 2 months when they lodge their annual return for the 2026 assessment year.
Public car parks
A public car park owner/operator can apply for a concession if, for at least one day in the preceding year, a space:
- was exempt, or
- was not capable of being used, or
- did not exist as a parking space.
Example
A public car park occasionally undergoes building works. A parking space cannot be used because it is occupied by construction equipment for one day in March 2025 and one day in October 2025.
The car park owner can apply for a part-year concession for that space for those 2 days when they lodge their annual return for the 2026 assessment year.
Retail premises and retail shopping centres
From 1 January 2026, a 50% concession applies to parking spaces located on, or adjacent to, retail premises or retail shopping centres in the category 2 area.
These parking spaces must be:
- provided free of charge for the first 60 minutes or to customers who make a purchase at the retail premises or shopping centre
- exclusively set aside for retail customer parking.
Social or affordable housing ex-gratia relief
Ex-gratia relief is available to new social or affordable housing developments which contain leviable parking spaces in the category 2 area.
Evidence that a development contains social or affordable housing could include:
- a planning permit commitment or Section 173 agreement for social or affordable housing
- a government funding agreement for social or affordable housing
- an agreement with a registered community housing provider.
The spaces must be located on the same premises as the social and affordable housing. For example, a single building, or multiple buildings that are adjoining or separated only by common areas or a road.
You can receive ex-gratia relief once the dwelling is completed, such as the issue date of the occupancy permit or certificate of final inspection. It applies to your congestion levy liability from the following year until the 2030 assessment year. Relief is available for dwellings completed between 25 November 2025 and 31 December 2029.
For each eligible year, the relief amount is $6,000 for each completed dwelling. You cannot get a credit if the relief is more than your liability.
Claiming relief
To claim ex-gratia relief, email cgl@sro.vic.gov.au.
Example
| Date | Number of dwellings completed during this period | Total dwellings completed since 25 November 2025 | Maximum ex-gratia relief |
|---|---|---|---|
| 25 November 2025 to 31 December 2025 | 5 | 5 | $30,000 in 2026 assessment year |
| 1 January 2026 to 31 December 2026 | 5 | 10 | $60,000 in 2027 assessment year |
| 1 January 2027 to 31 December 2027 | 0 | 10 | $60,000 in 2028 assessment year |
| 1 January 2028 to 31 December 2028 | 10 | 20 | $120,000 in 2029 assessment year |
| 1 January 2029 to 31 December 2029 | 5 | 25 | $150,000 in 2030 assessment year |
| 1 January 2030 to 31 December 2030 | 0 | 25 | $0* |
*No relief from 2031 assessment year onwards.