Introduction

Parking arrangements within strata schemes in New South Wales can often be a source of confusion and potential conflict among residents and owners corporations. Understanding the specific rules governing resident and visitor parking spaces, as well as any applicable levies, is essential for maintaining harmony and ensuring the smooth operation of the strata community.

Navigating the complexities of strata living requires a clear understanding of the relevant by-laws and legislation governing common property and individual lot entitlements. This guide aims to clarify the regulations surrounding strata parking in NSW, covering resident entitlements, visitor parking protocols, and the implications of parking levies, providing essential information for effective scheme management and informed residents.

Understanding Strata Parking Rules in NSW

Resident Parking Spaces

In most strata schemes, each lot entitlement includes a designated car space reserved exclusively for that lot’s occupants. It is essential for lot owners and residents to confirm—via the strata manager or strata committee—whether their entitlement includes parking.

Parking in any space not allocated to your lot, including those marked for visitors, is strictly prohibited under the by-laws. Residents who ignore this rule may face formal complaints from neighbours and enforcement action by the owners corporation.

If unauthorised parking persists, the owners corporation can:

• Seek NCAT-imposed fines of up to $1,100, which may double if the breach recurs within 12 months.
• Issue a notice to comply with the by-law.

Visitor Parking Spaces

Visitor parking spaces are classified as common property and are intended solely for guests. These areas should display clear signage indicating any time limits or usage rules.

When residents misuse visitor bays, the owners corporation has several enforcement options:

• Placing warning notes on offending vehicles.
• Issuing formal notices to comply under the by-laws.
• Imposing fines for continued breaches.

To further regulate and monitor these spaces, some schemes implement:

• Automatic parking barriers
• Security guards or patrols
• Key-card access systems

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 (NSW) 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 Central Business District (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: 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 (NSW). 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:

Obligations of Parking Space Owners

OOwners 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 2009 (NSW).

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 (NSW)—was held liable for a levy on five of its seven visitor car parking spaces. The Chief Commissioner of State Revenue’s determination applied to a strata scheme comprising 33 residential apartments and seven commercial suites.

The owners corporation contested the levy at NCAT, arguing that visitor spaces should be exempt under residents’ parking regulations. NCAT disagreed, finding the spaces ineligible for exemption, and the matter proceeded to the NCAT Appeal Panel.

The Appeal Panel upheld NCAT’s decision on the basis that:

• The regulations do not explicitly exempt guest parking.
• The Parking Space Levy Act 2009 (NSW) aims to reduce car use in targeted areas.
• Bay usage that serves both exempt and non-exempt purposes cannot qualify as exclusively exempt.

The ruling confirmed the strata scheme’s liability for the parking levy. Although the levy currently applies only in specified Sydney zones, owners corporations in Category 1 and Category 2 areas should:

• Evaluate how the levy affects their property portfolios.
• Stay informed of evolving statutory obligations.

Conclusion

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

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