Purchasing a new property is always both an exciting and cautious time in your life. You want to make sure that you’ve got everything ready, enough funds for things such as stamp duty, mortgage deposits and in some cases, lenders mortgage insurance. However, in recent months, the state of Victoria is worried that the decline in stamp duty taxes will increase those of public car parks.
Since the local Victorian residents will be the ones who are going to experience this spike in taxes due to the possible increase of a congestion levy in large car parks, it comes at no surprise that both residents and car park owners are worried at what the future holds for them.
This would create a problem for car park owners, as they could find themselves renting out less and less spots to tenants, simply because it’ll get too expensive. The returns that the government is predicted to get from this rise in levies is slight in comparison to the effect that car park and other parking asset owners will have, as well as their customers.
With fewer parking spaces being rented and leased out, the owners will see a significant decrease in their numbers and parking lots will sit empty with no one parking in their facilities. This will lead to car parking buildings to lie dormant in the city with thousands of unused spaces continuing to be unused. The residents with no other transportation alternative will have no choice but to pay this levy so that they can park their car in an assured location that guarantees them a secure parking space for the duration of their stay in Melbourne.
The government will, as a result of this stamp duty decline, see a $1 billion loss to the Victorian state budget, following the nearly 25% decrease in property prices. As the property prices continue to fall, so then does the budget and in order to make up for the loss, other taxes and levies will rise.
There are alternative ways to combat the parking issue that will arise from this.Online marketplaces such as Spacer and Parkhound allow for hosts with unused parking spaces to rent them out to drivers who need the space. Whether this be for the short term or long term, the option is there for drivers, which will aid them in their future parking endeavours.
So despite the bleakness that is rising car parking levies and taxes for those particular asset owners, there is some hope for the residents of Victoria in regards to the future of parking. However, it is clear that a rising tax isn’t the answer that business owners and residents want to combat the declining stamp duty, especially if it means paying higher prices for parking, something that is already an issue in cities all around Australia.