City of Melbourne warns 73 per cent tax hike will cripple CBD

Analysis by the Property Council found the 73 per cent increase proposed by the state government would result in an extra cost of as much as $1,386 per spot to be passed on to motorists.

However, think tank the Grattan Institute has backed increases to the CBD’s parking levy as a way to curb traffic, as well as initiatives including charging inner-city drivers during peak hours and discounting off-peak commutes on public transport.

“What we haven’t seen is any modelling or any evidence from the state government about how this is leading to a reduction in congestion,” Campbell said. “This is not about congestion. This is about revenue raising.”

Since the congestion levy had been introduced, it had increased by more than 600 per cent, but the council receives a fixed sum of $7 million a year from it, an amount which has not increased since the levy was introduced almost 20 years ago.

Reece backed the motion alongside a majority of councillors and said the increase would put the City of Melbourne at a disadvantage compared to suburban shopping centres like Chadstone.

“This is the wrong time for a tax increase on Melbourne,” he said. “This is the wrong time for a new tax on parts of the inner city.”

Councillor Owen Guest said it should not be up to the City of Melbourne or any other council to make up the state government’s budget shortfalls.

“What the state government has done to Victoria’s budget will go down in the annals of shame,” he said.

The City of Melbourne is increasingly at loggerheads with the Allan government, even though Reece is a Labor party member.

In recent weeks the council has opposed the government’s work-from-home policy and has criticised how the government is dealing with crime in the CBD.

Loading

Labor councillor Davydd Griffiths and Greens councillor Olivia Ball were the only ones who voted against Campbell’s motion.

Griffiths said it was ironic that the council debate was being held less than a fortnight before the Metro Tunnel was set to open, which is expected to enable an additional 500,000 people to come into the city every week.

“Much of the rhetoric that we’ve heard tonight is about taking the opportunity to stick the boot into the state government,” he said.