Stonnington Opposes State’s Car Tax as Unfair
The City of Stonnington is standing up for its residents, businesses, and visitors by opposing the Victorian Government’s expanded Congestion Levy – a new and unfair tax on all paid public car spaces west of Williams Road that will significantly increase parking costs and take millions away from our community.
The levy will apply to four multi-deck and five at-grade Council car parks. It is yet another new tax grab by the government costing local ratepayers an estimated $4.1 million per year in its first year alone. Instead of staying in Stonnington to fund local services, this money will go straight to the Victorian State Government, with no clear benefit to our community.
Mayor Cr Melina Sehr said Council had no choice but to push back against another financial hit on residents and businesses.
“This levy is a tax on our community. It will make parking more expensive, add pressure to local businesses, and could force Council to cut back on the services our residents rely on,” Cr Sehr said.
“This will have a devastating impact on our already struggling shopping strips.”
“We support genuine congestion-reducing initiatives, but this is just another case of the State Government shifting costs onto local communities.”
The Congestion Levy is expected to increase State Government revenue from $120 million to over $220 million per year, but none of this funding will be reinvested into local transport solutions for Stonnington residents.
We have formally requested an urgent meeting with the Premier to demand the reversal of this tax. The State Government should be supporting councils, not undermining them with unfair financial burdens.
The City of Stonnington will continue fighting for our community – because this is not about congestion, it’s about fairness. We urge the Victorian Government to scrap this unfair levy before it does real harm to our residents and businesses.
https://www.stonnington.vic.gov.au/About/Media-centre/News-notices-and-media-releases/2025/Congestion-Levy-Public-Statement