Introduction

Finding a spot for your car in strata areas might seem like a tough nut to crack, yet knowing the ropes can help keep things running smoothly. If you live there or help manage the place, being savvy about parking rights and duties stops arguments in their tracks and builds a friendly neighbourhood spirit. Here’s the scoop on handling parking ins and outs in New South Wales, from spots for folks who live there to visitor spaces, even diving into parking fees. Get clued up and stay in line with the rules while living life in a strata.

Understanding Strata Parking Rules in NSW

Resident Parking Spaces

In strata properties, each unit or lot usually comes with designated car spaces for parking. These spaces are allocated specifically for the use of the residents of that lot. It is crucial for lot owners and residents to verify whether their lot entitlement includes a parking space, as not all lots may have this feature. The strata manager or strata committee can resolve any doubts about this.

Parking in spaces not allocated to one’s lot, including those reserved for visitors, is not permitted and violates the strata by-laws. This can lead to formal complaints from other residents and action from the owners corporation.

If the unauthorised parking continues, the owners corporation has the authority to issue a notice to comply with the by-law. Persistent breaches can result in fines imposed by the NSW Civil and Administrative Tribunal (NCAT), which may be up to $1,100, and can double if repeated within 12 months. 

Visitor Parking Spaces

Visitor parking spaces are intended solely for guests. These spaces are considered ‘common property,’ and residents are not permitted to use them. The rules governing these spaces, such as time limits for parking, should be clearly indicated by signage.

If visitor parking spaces are misused by residents, the owners corporation has the authority to intervene. This can involve placing warning notes on vehicles, issuing formal notices to comply, or even imposing fines for continued breaches. Additionally, strata schemes may employ measures such as security guards, key card systems, or parking barriers to regulate and monitor the use of these spaces.

Parking Levies in Strata Schemes

The parking space levy was introduced in major commercial precincts in Sydney to reduce traffic congestion and encourage the use of public transport. The revenue collected from this levy is directed towards improving public transport infrastructure.

Parking Space Levy Act 2009 (NSW)

• Purpose and Scope: The Parking Space Levy Act 2009 was established to impose a levy on off-street parking spaces in specific areas of Sydney. The primary goal is to discourage car use in key business districts, thereby alleviating traffic congestion. The affected districts include Sydney CBD, North Sydney/Milsons Point, Bondi Junction, Chatswood, Parramatta, and St Leonards.
• Categories and Rates: The legislation categorises these districts into two groups:
  • Category 1: Sydney CBD and North Sydney/Milsons Point, where the levy is higher.
  • Category 2: Bondi Junction, Chatswood, Parramatta, and St Leonards, which have a lower levy rate.
• Exemptions: Certain exemptions apply under the Parking Space Levy Regulation 2009. Notably, parking spaces designated for the exclusive use of residents on the premises or an adjoining property are exempt from the levy.
• Current Levy Rates: As of 1 July 2024, the levy rates are as follows:
  • Category 1 Areas: $2,950
  • Category 2 Areas: $1,050
  These rates apply to the 2025 tax year assessment, based on parking spaces liable for the levy from 1 July 2023 to 30 June 2024.

Obligations of Parking Space Owners

Owners of leviable parking spaces are required to comply with specific reporting obligations to Revenue NSW, including:

1. Declaring the acquisition of a parking space within a leviable district.
2. Informing Revenue NSW of the sale of a parking space within these districts.
3. Submitting an annual declaration by 1 September, detailing how the parking space was utilised during the previous financial year.

These obligations ensure accurate levy assessments and compliance with the Parking Space Levy Act.

Parking Levies on Visitor Car Parking Spaces in Strata Complex Common Property

In a recent case, a mixed-use building in Milsons Point, categorised as “Category 1” under the Parking Space Levy Act 2009, was deemed liable for a levy on 5 of its 7 visitor car parking spaces. This determination was made by the Chief Commissioner of State Revenue and applied to a strata scheme that includes 33 residential apartments and 7 commercial suites.

The strata scheme contested the levy at the NCAT, arguing that the visitor spaces should be exempt under regulations for residents’ parking. However, NCAT ruled that these spaces did not qualify for the exemption. The owners corporation appealed this decision to the NCAT Appeal Panel.

The Appeal Panel upheld the original decision, stating that the regulations did not explicitly exempt guest parking. They highlighted that the Parking Space Levy Act aims to reduce car use in certain areas, and since the spaces served both exempt and non-exempt purposes, they could not be classified as exclusively exempt.

The decision affirmed the strata scheme’s liability for the parking levy. The applicable laws currently target specific Sydney areas, but there may be future expansions. Owners Corporations in Category 1 and Category 2 areas should stay informed about their legal obligations and assess the impact of these laws on their properties.

Key Takeaway: Know Your Parking Rules and By-laws for Peaceful Strata Living

Navigating strata parking rules doesn’t have to be daunting. With the right knowledge, you can help create a fair and orderly parking system in your community. Staying informed about your responsibilities and the latest regulations not only promotes harmony among residents but also protects against legal and financial pitfalls.

If you encounter issues like unauthorised parking and want to know how to resolve parking-related disputes, refer to our previous article on the topic. 

For expert guidance on managing parking in your strata property, reach out to us today!