Property council fumes as State Government’s $300 million Perth parking levy revealed

A State Government parking tax meant to promote public transport into the city is still largely unspent despite Perth drivers and ratepayers paying millions into it. Analysis of quarterly financial figures shows the amount collected by the Perth parking levy in the three months to September was double the same period last year. It puts the account on track to accumulate $312 million across the Budget’s forward estimates. The Sunday Times can reveal the Perth parking levy collected $32m in the September quarter, on track to reap up to $128m in 2025-26 — or double the $64m that was forecast. The Property Council claims there is still no real plan to spend it. “We now need to get serious about utilising the Levy,” Property Council WA executive director Nicola Brischetto said. “The Perth Parking Levy should be used for improvements to the heart of our city, not to pad out the State Budget. “Our members, who are some of the biggest contributors to the Perth parking levy, are losing faith in its management.” But the State Government has blamed a quirk of timing. “The levy’s increase in revenue for the first three months of this financial year can be attributed to assessment notices being issued earlier than they were 12 months ago,” a Government spokeswoman said. “Last financial year, $78.8m was invested in (infrastructure and services) from the levy. “This includes free CAT bus services, the Free Transit Zone, electric CAT buses and charging infrastructure at Elizabeth Quay, Northbridge tunnel monitoring, upgrades to improve accessibility for people with disability at 39 bus stops and shelters across the CBD, active traffic monitoring and management of traffic around events in the CBD, and the Boorloo Bridge.” The Department of Transport’s annual report showed a closing balance of $163m in the fund at the end of 2024-25, $20m less than last year. Ms Brischetto said it should be spent faster and with more transparency. “Those funding the levy are in the dark about how, or if, the money will be spent,” she said. “A clearly articulated plan for how the fund will be spent would be a real drawcard for attracting investment into the Perth CBD.” The parking levy is a tax of $1100 to $1300 applied to each non-residential car bay in the city. It was designed to fund measures to ease congestion, with $30m each year going towards the operation of CAT buses and other funding spent on clearway towing and cycling access. A war of words erupted between Rita Saffioti and former Perth Lord Mayor Basil Zempilas in 2023, when the State Government changed legislation to broaden the fund’s scope after being caught using $580,000 from it for the new WACA swimming pool. An Auditor-General’s report that same year also found that although the Government was required to consult with the City, it only did so on eight of the 13 projects it approved use of the fund for. “That money was collected to be spent on Perth transport initiatives. It’s in the legislation. Spend it on what it was collected for,” Mr Zempilas said at the time. Instead, the Government amended legislation to “improve administration” of the Perth parking levy and expand its use to non-transport projects that “provide an economic benefit or improve urban amenity.” An August 2023 press release issued by Treasurer and Deputy Premier Rita Saffioti suggested it could be used for works associated with a new Perth Convention and Exhibition Centre. That project was dumped last month. “We are widening the scope of the scheme because we understand that a lot of things need to happen in the City,” she told Parliament in September 2023. “The Perth Concert Hall, convention centre and cultural centre carparks have been managed by the City of Perth. Perth parking levy money has been collected at these venues, all three of which need an upgrade. “The question is: where do we get that money from?” Now State Opposition Leader, Mr Zempilas deferred questions this week about use of the levy to Shadow Treasurer Sandra Brewer. Ms Brewer questioned whether the Government had followed through on the Auditor-General’s recommendations to report projects funded, confirm consultation has occurred and develop a CBD Transport Plan by January 2024. “The balance of the Perth Parking Licencing Account continues to rise, making the books look better, but not helping to fix key congestion and amenity issues in the CBD,” Ms Brewer said. “The Auditor-General has previously found issues in the department’s administration of the Perth Parking Levy and made five recommendations, which Transport Minister Rita Saffioti must address.” The department confirmed phase 2 of transport plan was not yet finished. “Following the auditor-general’s report, the Department of Transport and Major Infrastructure has progressed a new Perth Parking Management Act 2024, which has broadened the scope for what could be considered in the phase 2 Perth Greater CBD Transport Plan,” it said. “A phase 2 Perth Greater CBD Transport Plan will be reconsidered once the Perth Parking Management Act 2024 regulations and policy are finalised.” New Perth Lord Mayor Bruce Reynolds wants the money used to revitalise Perth train station, sport and recreation infrastructure and Northbridge. “Perth is in an unprecedented period of growth and it’s essential that we maintain a balanced strategic approach to meet the needs of our local community while supporting local, State and Federal priorities,” he said. The City of Perth’s annual report, due to be released next week, will show parking revenue has increased from $78m to more than $81m after free night-time parking was axed. A City of Perth spokeswoman said the State Government had applied a fee increase of 5.8 per cent this year, but didn’t say whether the mounting cost of the parking levy would result in higher charges being passed on. The City’s own budget showed a balance of $7,573,513 in its parking levy reserve — but current estimates suggest it will have to hand over much more.