Strata Visitor Parking Rules & Levies NSW: Complete Legal Guide + Free Checker

Introduction

Managing parking arrangements within a strata scheme in New South Wales is essential for maintaining harmony and preventing disputes among residents and owners corporations, which have specific legal duties. These rules, governed by specific by-laws and legislation like the Parking Space Levy Act 2009 (NSW), ensure that common property is used fairly and that the community operates efficiently.

This guide provides strata owners, residents, and managers with a clear understanding of their rights and obligations regarding resident and visitor parking spaces. By clarifying the regulations surrounding parking entitlements and the implications of statutory levies, this resource helps stakeholders navigate the complexities of strata living and avoid potential penalties.

Interactive Tool: See How to Enforce Parking Rules & Check Levy Liability

Understanding Strata Parking By-Laws in NSW

Resident Parking Entitlements & Responsibilities

In a strata scheme, residents are permitted to park only in the spaces specifically allocated to them. It is crucial for residents to confirm their parking entitlement with the strata manager or strata committee, as parking in a visitor bay or a space assigned to another lot is a breach of by-laws.

If an owner’s lot does not include a parking space, they may apply to the owners corporation for exclusive use of a part of the common property. This process involves creating a common property rights by-law, which requires several steps:

• The owner must contact the strata committee secretary or strata manager to propose the use of a specific common property area.
• A motion for the new by-law must be added to the agenda of a general meeting.
• The owners corporation must pass the by-law with a special resolution, meaning no more than 25% of votes are cast against it.
• The by-law must clearly state who is responsible for the maintenance of the space—the owner or the owners corporation.

Visitor Parking as Common Property

Visitor parking spaces within a strata scheme are designated as common property and are intended for the exclusive use of genuine guests. Consequently, residents are strictly prohibited from using these spaces for their own vehicles.

To ensure clarity and prevent misuse, the owners corporation should install clear signage for all visitor parking areas. This signage should specify any conditions of use, such as time limits, to effectively manage the availability of these spaces for visitors.

As strata schemes are private property, visitors must find alternative parking if no designated visitor spots are available.

Enforcement Options for Your Strata Scheme

Issuing Notices & Applying for NCAT Penalties

When a parking by-law is breached, the owners corporation can begin a formal enforcement process. This usually starts with an informal chat or a warning directed at the person responsible for the breach.

If the behaviour continues after an initial warning, the owners corporation must escalate the matter. The formal pathway generally involves:

• Notice to comply – a written notice sent to the owner or occupier that specifies the breached by-law and demands the conduct stop.
• Apply to NCAT – if non-compliance persists, the owners corporation can apply to the NSW Civil and Administrative Tribunal (NCAT).
• Penalty of up to $1,100 – NCAT may impose this fine, and it can double if the same by-law is breached again within 12 months.

Physical Parking Management & Council Partnerships

To proactively manage common-property parking, an owners corporation can install physical control measures that deter unauthorised access and support rule compliance.

Practical solutions for controlling parking include:

• Warning Notes: placing polite notices on incorrectly parked vehicles as an initial warning.
• Automatic parking barriers: installing boom gates or key-card systems to restrict entry to authorised vehicles.
• Security guards: employing personnel to monitor the car park and enforce the rules.
• Clear signage: marking resident and visitor bays and stating any time limits or specific conditions.

While the owners corporation cannot issue parking fines directly, a common point of confusion in illegal parking disputes in strata, it can enter into a partnership with the local council. Through such an arrangement, council rangers are authorised to issue official parking fines for breaches that occur on common property.

Managing Unauthorised & Abandoned Vehicles

The owners corporation may arrange for the towing of vehicles parked in breach of the parking by-laws, whether they occupy resident, visitor or other common-property spaces.

For vehicles that appear abandoned, a specific legal process must be followed before disposal. The first step is verifying that the vehicle is not stolen. This requires obtaining:

• a certificate from the Commissioner of Police confirming the vehicle is not recorded as stolen, and
• a written search result from the Personal Property Securities Register showing no security interests.

Once the vehicle is confirmed as not stolen, the owners corporation must issue a formal disposal notice. This notice advises the owner that the vehicle will be removed and disposed of if it is not claimed within the specified period.

The NSW Parking Space Levy Explained

Purpose Scope & Affected Districts

The Parking Space Levy Act 2009 (NSW) was introduced to manage traffic congestion in major commercial areas by encouraging the use of public transport. Consequently, revenue generated from the levy is used to fund improvements to public transport infrastructure.

This levy applies to off-street parking spaces within several key business districts. The specific areas affected by this legislation include:

• Sydney Central Business District (CBD)
• North Sydney/Milsons Point
• Bondi Junction
• Chatswood
• Parramatta
• St Leonards

Levy Categories Exemptions & Rates

The legislation divides the affected districts into two categories, each with a different levy rate. Specifically, this tiered system reflects the varying levels of traffic congestion and public transport accessibility in these areas.

• Category 1: This includes the Sydney CBD and North Sydney/Milsons Point, which are subject to a higher levy rate.
• Category 2: This category covers Bondi Junction, Chatswood, Parramatta, and St Leonards, where a lower levy rate applies.

A significant exemption exists under the Parking Space Levy Regulation 2019 (NSW). Parking spaces that are designated for the exclusive use of residents on the premises or an adjoining property are not subject to the levy.

Obligations for Owners of Leviable Parking Spaces

Owners of parking spaces that are subject to the levy have specific compliance duties. They are required to report certain information to Revenue NSW to ensure accurate assessment and collection of the levy.

These obligations include:

• Declaring acquisitions: Owners must declare the acquisition of any parking space located within a leviable district.
• Reporting sales: They must also inform Revenue NSW when a leviable parking space is sold.
• Submitting annual declarations: An annual declaration must be submitted by 1 September each year, which details how the parking space was used during the preceding financial year.

Case Study: A Strata Scheme’s Liability for Visitor Parking Levies

A decision by the NCAT Appeal Panel provides a crucial example of how the Parking Space Levy Act 2009 (NSW) applies to visitor parking in a strata scheme. The case involved a mixed-use building in Milsons Point, a Category 1 district, which contained:

• 33 residential apartments
• Seven commercial suites

The Chief Commissioner of State Revenue determined that the strata scheme was liable for a levy on five of its seven visitor car parking spaces.

Challenging this decision at NCAT, the owners corporation argued that the visitor spaces should be exempt from the levy under the regulations for residents’ parking. However, NCAT rejected this argument, and the decision was later upheld by the Appeal Panel.

The Appeal Panel’s reasoning was based on several key points:

• The regulations do not contain an explicit exemption for guest parking.
• The primary purpose of the Parking Space Levy Act 2009 (NSW) is to reduce car usage in designated commercial areas.
• A parking bay that serves both exempt (resident) and non-exempt (visitor/commercial) purposes cannot be considered exclusively exempt.

Ultimately, this ruling confirmed the strata scheme’s liability for the parking levy on its visitor spaces.

Conclusion

Navigating strata parking rules in NSW, from resident and visitor by-laws to the implications of the Parking Space Levy Act 2009 (NSW), is essential for maintaining order within a strata community. Clarity on parking rights, responsibilities, and applicable regulations helps prevent disputes and ensures compliance, protecting both residents and the owners corporation from potential penalties.

If you require assistance interpreting parking by-laws, managing disputes, or understanding your obligations regarding parking levies, seeking professional legal advice is recommended. Contact PBL Law Group’s expert strata lawyers today for guidance on all strata law matters.