Prahran Council Votes to Overhaul Parking Levy and Green Space Funding: What Changes for Residents

Prahran City Council passed two significant measures at its ordinary meeting on Tuesday, July 7, voting 7-2 to restructure the commercial parking levy and unanimously approving a $2.4 million open space improvement package drawn from the 2026-27 capital works budget. Both decisions take effect from September 1 and will directly alter what residents and businesses pay, and what they can expect from local infrastructure.

The timing matters. Councils across the broader region have been under pressure to diversify revenue streams as intergovernmental grant allocations tighten, while simultaneously managing community expectations around green space following a surge in park usage recorded since 2022. Prahran's per-capita open space ratio currently sits at 9.2 square metres per resident, below the 11 square metres recommended in the council's own 2024 Open Space Strategy. Tuesday's vote is the first concrete funding step toward closing that gap.

What the Parking Levy Change Means Day-to-Day

The revised levy applies to commercial car parks with 10 or more spaces operating within the Chapel Street activity centre and the Greville Street precinct. Annual levies for those operators will rise from $580 per bay to $740 per bay, an increase of roughly 27.6 percent. Council officers, presenting to the chamber before the vote, noted the previous rate had not been reviewed since 2021. Operators with fewer than 10 bays are exempt. Residents using council-managed off-street parking in those zones will not face a direct rate increase, though the council's transport policy report tabled on the night acknowledged that some commercial operators may pass costs through to hourly rates. The report did not model how much of that pass-through would occur.

Comparable levy structures in similar-sized urban councils provide some context for where Prahran now sits. A 2025 survey of 14 inner-urban councils published by the Municipal Association found the median commercial parking levy sat at $690 per bay annually, meaning Prahran's new rate of $740 places it in the upper quarter of that cohort but not at the ceiling. Two councils in the survey charged levies above $900 per bay. Council officers projected the revised levy will generate an additional $310,000 in annual revenue, earmarked specifically for active transport infrastructure including two new separated cycling lanes on Commercial Road, expected to be delivered by mid-2027.

Open Space Funding and the Three-Year Rollout

The $2.4 million open space package, approved without dissent, is spread across four sites. Toorak Road Reserve receives $680,000 for path resurfacing and shade structure installation. Prahran Market Square gets $540,000 for seating and drainage upgrades. Two smaller pocket parks on Williams Road and Izett Street are allocated $610,000 and $570,000 respectively for turf replacement and accessible play equipment. All four projects are projected to reach tender stage by November 2026, with construction scheduled to begin no later than February 2027.

Local advocates have pressed council for accessible infrastructure in particular since a community survey conducted in March 2026 found that 38 percent of Prahran respondents rated existing playground accessibility as inadequate. The Williams Road and Izett Street upgrades directly address that finding, specifying equipment compliant with AS 4685-2014, the national standard for playground equipment and surfacing. Policy analysts note that councils which fund open space upgrades in consolidated tranches, rather than piecemeal annual allocations, tend to achieve lower per-project costs through combined tender processes, a point council officers referenced explicitly in the budget report tabled Tuesday.

Both measures now move to implementation phase. The parking levy notices will be issued to affected operators by August 1, giving businesses a 30-day adjustment window before the September 1 commencement date. The open space projects will be presented to the council's Infrastructure and Environment Committee for tender approval at the September 15 ordinary meeting. Residents can view the full budget papers and transport levy report on the council website under the agenda for the July 7 meeting.