SA Grapples with ‘Development Killer’ Carparking Law Changes

A battle between street congestion and housing affordability is brewing in South Australia as developers face a choice between building wider garages or paying tens of thousands in new fees. The state’s draft Vehicle Parking Amendment Bill could add up to $90,000 to townhouse prices in high-demand urban areas, forcing developers to balance regulatory compliance with project viability in a market already struggling with accessibility and cost pressures. The draft Planning, Development and Infrastructure (Vehicle Parking) Amendment Bill 2025 has sparked intense debate between government officials seeking to reduce street congestion and industry representatives concerned about housing affordability. Citify managing director Joel Wilkinson warns that while direct construction costs for larger garages might only increase $12,000-$16,000 a home, the flow-on effects to land acquisition present the real challenge. “The proposed expansion of single garage dimensions necessitates an additional 500-600mm in width,” Wilkinson tells The Urban Developer . “This significantly impacts townhouse developments, where planning regulations often restrict garage frontage to no more than 50 per cent of the total frontage.” Under the draft bill released for public consultation in February, developers would need to provide substantially larger off-street parking spaces to accommodate modern vehicles. The minimum dimensions would increase to 3.5m wide and 6m long for a single vehicle park—up from the current 3m by 5.4m standard—with minimum garage door sizes expanding to 3m from 2.4m. The proposed Vehicle Parking Scheme would establish mandatory minimum parking requirements based on home size. One-bedroom homes must provide one vehicle park, while homes with two or more bedrooms must include at least two parks. ▲ Housing affordability challenge: Citify managing director Joel Wilkinson. These parking areas need not be covered garages or carports, though at least one must be capable of being covered in the future. For developers who cannot meet these requirements, the draft bill establishes a substantial offset fee structure, which would finance public parking infrastructure and bicycle facilities. Contributions to a new Vehicle Parking Fund would range from $25,000 in Greater Adelaide to $35,000 in Metropolitan Adelaide and $45,000 within the CBD. The changes come as larger vehicles continue to dominate the Australian market. The Ford Ranger ute, about 5.4m long and 1.9m wide, was the most popular new car in Australia last year. Nine of the top 10 vehicle sales positions were occupied by SUVs and utes, according to the Federal Chamber of Automotive Industries. Premier Peter Malinauskas says “it’s ridiculous that many modern garages are not built big enough to fit the most popular cars” and defends his plans to bring “our planning laws up to date”. The legislation aims to address complaints from residents who, according to Malinauskas, are “sick of seeing their suburbs being overrun by cars often double-parked on otherwise quiet streets” because vehicles cannot fit in current garages. However, Wilkinson questions whether merely widening garages will solve the problem. “Simply enlarging garage spaces doesn’t guarantee off-street parking usage. Behavioural factors often lead residents to use garages for storage or convert them into additional living spaces, continuing the trend of on-street parking,” he says. Wilkinson suggests alternative approaches might be more effective. “A more effective approach might involve local council and urban planning strategies, such as implementing one-way streets to allow parking on a single side, thereby optimising street space. “Or having permit zones which already exist in multiple council areas such as Walkerville and Unley Council where the existing street networks in the older heritage areas were narrower.” ▲ Wilkinson says one-way streets and single-side parking, as in some UK housing estates, could be a viable alternative. The impact of these changes would be felt unevenly across the state. “The biggest impact will be in the costs for medium-density housing, not so much in the greenfield estates in the upper north and south which typically already have larger block widths,” Wilkinson says. The Property Council has also raised concerns about the economic implications. Property Council executive director Bruce Djite wants to see need greater investment in public transport to improve connectivity. “We can’t just cater to those who already own homes,” he says, adding that the mandate could increase housing costs and reduce affordability for first-time buyers and low-income families. Urban planning expert David Mepham, author of Rethinking Parking , questions the effectiveness of the approach. Mepham, who has a PhD in urban planning, says international trends are moving away from mandated minimum sizes for car spaces, particularly given changing demographics. “Especially among ageing populations, people might be downsizing and no longer need a car—but be forced to pay for a space regardless,” he says. Mepham suggests a different approach. “We need to nudge back against parking, and the way we do that is make them pay the full price.” He says that quantifying the cost of carparks and passing that cost on to drivers was one way to get drivers to rethink buying large, environmentally unfriendly vehicles. ▲ Street congestion underscores the tension between parking reforms and housing affordability. The SA Greens have condemned the proposal—transport spokesperson Robert Simms calls it “absurd” that “in the middle of a climate crisis, the State Government would be forcing developers to build bigger garages”. Simms says that the focus should instead be on boosting investment in public transport and cycling infrastructure. Wilkinson is concerned about the financial impact of the proposed contribution fees. “While these fees aim to fund public parking infrastructure, they represent a significant upfront financial burden on developers and, by extension, homebuyers,” he says. “In many cases, the cost of physically expanding garage spaces may be less than the contribution fee.” The legislation will likely influence where developers choose to build. “Projects in areas exempt from the Vehicle Parking Scheme, such as certain CBD zones and transit-oriented developments, may become more attractive due to lower associated costs,” Wilkinson says. “Conversely, developments in regions subject to the full extent of the new requirements may face financial viability challenges.” These exemptions, which could apply to developments in the CBD, North Adelaide, and strategic infill projects on public transport routes with mobility hubs, have received cautious support from industry. “The exemptions for the CBD and transit-oriented developments are beneficial, as they recognise the unique characteristics and infrastructure of these areas,” Wilkinson says. “It may even make these areas more viable as developers in exempt areas will be able to provide housing without the additional cost increase.” ▲ Nightingale Bowden, SA, designed by Breathe and built by Hindmarsh has no private carparks for residents. In contrast to South Australia’s approach, Victoria is moving in the opposite direction, with plans to reduce carparking requirements in areas well-served by public transport while increasing bicycle parking requirements. Victorian policy documents note that “a carpark can increase the cost of a townhouse or apartment by more than 10 per cent and add more than 15 per cent to the rent”. The Local Government Association of South Australia has backed the changes, with councils voting in favour of increasing garage sizes at their annual general meeting last year. “This legislation represents a strong, collaborative outcome between local and state government and directly supports councils’ efforts to ease congestion and improve neighbourhood streets,” according to the consultation document. The South Australian Bill is expected to be introduced to parliament this year.

SA Grapples with ‘Development Killer’ Carparking Law Changes

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