By Megan Gorrey
Drivers would avoid hidden costs charged by third-party apps when parking on Sydney streets under a NSW government push for councils to ensure motorists only pay prices advertised on parking signs.
Councils have increasingly turned to third-party apps to collect parking fees from motorists, many of whom have expressed frustration at service charges that can add more than 10 per cent to the cost.
North Sydney Council attracted a backlash over its PayStay third-party parking app, which runs alongside parking meters.Credit: Dominic Lorrimer
Roads Minister John Graham said councils were obliged to pay for the administration of parking fees under NSW regulations. He said many motorists had been “surprised and annoyed” when the convenience of ticketless parking schemes was accompanied by often-buried surcharges.
“Councils need to read the signs – motorists are not happy about being slugged with hidden fees on top of the cost of parking. The cost to park should be just as it says on the sign, regardless of how you pay,” Graham said.
“It’s a simple concept that we want all councils to get on board with, and we are inviting their feedback to help shape improvements for the consumer.”
The plan sets the stage for another potential showdown between the state and local governments over cost-shifting to NSW councils.
Last year, North Sydney Council launched a review after it faced a backlash for its PayStay cashless parking system run by Orikan, which was charging drivers an 8.25 per cent transaction fee on each payment.
Parramatta, Newcastle, Tamworth and Ballina councils use EasyPark, which charges an 11.5 per cent service fee.
The parking systems generally require drivers to scan a QR code, which takes them to an app or website where they can enter their contact details, car registration and desired parking time.
Some apps also charge an extra 34 cents when they send drivers a reminder to inform them their paid parking is about to expire.
The apps can help councils reduce the cost of administering parking and provide valuable data on demand in their area.Credit: Dominic Lorrimer
Graham said the government would contact parking authorities – which include local councils – to reiterate that parking charges, as they are signposted on the street or advertised, must be the total cost consumers pay, without any service fees added by the third-party apps.
The government has not stipulated a particular solution to the possible breach of guidelines; however, it could include councils absorbing the fees or finding a different fix with app providers.
Graham said ticketless parking had benefits, and councils would be given the chance to provide feedback on how the relevant government guidelines were updated to reflect necessary changes.
“In general, ticketless parking is there to make payment easier and more convenient for users, and reminders are a good thing to avoid the headache of a parking fine,” he said.
“Data on parking demand is also invaluable for making improvements at street level.”
Graham previously signalled plans to abolish schemes that require renters to pay for beach parking permits while ratepayers get them for free in Mosman and Northern Beaches council areas, prompting Mosman’s mayor to accuse the government of cost-shifting to local councils.
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