Road occupation charge
Find out about the road occupation charge for construction companies and other private organisations on arterial roads.
About the road occupation charge
The road occupation charge was introduced to reduce traffic congestion in inner-city Melbourne by charging private parties a fee to occupy arterial roads for private use.
The road occupation charge applies to inner-city Melbourne arterial roads from 20 July 2020. It extends across 121 suburbs from Beaumaris (South East) to Balwyn North (East) to Glenroy (North West) to Kingsville (West) in 11 local councils. View all local council areas in the frequently asked questions below.
The road occupation charge is calculated based on a rate per lane per day depending on the specific location.
A traffic management company must obtain a Memorandum of Authorisation (MoA) from the Department of Transport and Planning (DTP) to use traffic control devices to manage traffic through a worksite on an arterial road.
When assessing the MoA application, DTP will determine if a road occupation charge applies. If it does apply, the occupying party will be required to enter into a licence agreement with DTP. The licence agreement details DTP’s consent to the occupation of the arterial road and the occupation charge and days which the road can be occupied.
Applicants should allow five working days for a road occupation charge application to be processed. This is in addition to the 15 working days to process the MOA.
For more information regarding MoA applications, please contact your preferred traffic management company or refer to the consent to work on the road page.
Private parties may also be required to provide a bond of up to $10,000. The bond is a refundable security deposit, held as an incentive to ensure the roads are reinstated to their original condition should any damage occur from the occupation.
View the terms and conditions of a standard short-term road occupation licence agreement.
Why has DTP introduced the road occupation charge?
When private parties occupy arterial roads it often has a negative effect on our road network.
It contributes to traffic congestion, reduces community access to amenities, adversely affects the reliability of public transport and compromises the safety of pedestrians, cyclists, workers, and the community.
The road occupation charge creates a financial incentive to encourage private parties to occupy roads in a more efficient way, minimising disruption to traffic and the community.
Charging for occupying space on arterial roads is part of a $340 million package of initiatives we are implementing to keep our roads moving.
Find out more
The frequently asked questions below will assist you in applying for a licence agreement to occupy road space on arterial roads.