Melburnians could be paying a little more to park, own property and move around safely under the City of Melbourne’s newly released 2026–27 draft budget—but the council says it’s part of a plan to make the city “safer and kinder”.
After freezing rates last year and promising no parking fee hikes, Lord Mayor Nick Reece unveiled the budget on Tuesday, defending a series of modest increases and multi-million dollar investments across safety, housing support and neighbourhood upgrades.
“It’s the first increase in on-street parking fees in eight years,” Cr Reece said. “And it will mean the cost of parking for an hour in the central city will go from $7 an hour to $7.30 an hour. It’s still half the cost of parking in an off-street car park, so it’s a very, very good deal for motorists.”
Parking & Rates On The Rise
The biggest bite for city drivers is a 30-cent-per-hour jump in on-street parking charges, ending a long-held freeze. Reece’s earlier plan not to raise fees has changed, with the adjustment described as keeping pace with inflation.
For property owners, rates will also edge upwards. While the council describes the increase as an average 2.75 per cent, the lift comes after last year’s freeze—making the effective rise closer to 5.75 per cent compared to 2024.
Library and community funding, broader safety initiatives and cultural precinct investments underpin the rate adjustment, with the council forecasting a $1.2 million surplus and projecting it could be debt-free by 2032.
Doubling Down On City Safety
A major budget highlight is a $1.7 million plan to double Melbourne’s team of Community Safety Officers, boosting street patrols from 11 to 22.
A further $2.3 million will support people at risk or experiencing homelessness, including a new outreach unit with mental health specialists.
“This is an area that’s been traditionally the domain of the state government, and now we’re stepping up,” Reece said. “It’s a team effort to make sure Melbourne is safer and kinder.”
An additional 150 security cameras will also be installed throughout the CBD, bringing the total to about 500 across the municipality.
A City Makeover On The Horizon
Art, culture and design projects are getting their own slice of funding. Southbank will welcome a new $2.8 million library on City Road, alongside upgrades to the existing Boyd Community Hub.
Decorative lighting will brighten Hosier Lane, Collins Street and Hardware Lane, while Flinders Lane is set to become pedestrian-first between Swanston and Elizabeth streets—with traffic restrictions during certain hours. For more information on changes to Flinders Lane, head here.
The city’s laneways are also getting attention. Reece said the council was exploring ways to “enliven” Melbourne’s smaller streets, including Little Collins, Little Bourke and Little Lonsdale.
Meanwhile, Docklands will see $1.2 million invested in the creation of a “Little India”—a new cultural precinct designed to rival the energy of Chinatown and attract visitors to the area. Read more about that here.
Alongside these headline projects, Melbourne will see 13 new parks, upgraded bike lanes on Queensbridge and Rathdowne streets, and fresh streetscape improvements. The vision, according to Reece, is a “city that’s more welcoming, more walkable, and more connected.” For more details on the parks, see here.
Have Your Say
The draft budget is now open for public feedback until 28th April 2026. To read the full proposal or lodge a submission, residents can head to participate.melbourne.vic.gov.au — the council’s official consultation portal.