Parking Fees Are Slugging Motorists - Councils Urged to Stop It

Smarter City Solutions

Millions of Australian motorists are paying a hidden excessive parking tax because their local councils have adopted single-provider pay-by-phone parking apps that eliminate competition and drive-up transaction fees, when they could be paying half that cost.

Australian parking technology company Smarter City Solutions has written to every Australian council calling to put the public first by reviewing their parking systems and moving to an open-market model that allows any approved parking apps to operate side-by-side.

Introducing competition between parking apps would give motorists choice, increase transparency over costs, and significantly reduce added parking transaction fees, similar to rideshare apps.

Why Pay More for Parking?

Across Australia, councils have increasingly introduced modern pay-by-phone parking apps as part of the shift away from traditional parking meters.

While the intention was to improve convenience for motorists when this parking technology was first introduced, single-provider arrangements, have unintentionally created certain monopoly conditions. This means motorists have no alternative but to pay the unnecessarily high fees imposed by the council’s selected provider.

“When a council locks in a single parking app who imposes additional fees on motorist, it effectively creates a monopoly,” Mr Almog said.

“And monopolies rarely deliver the best outcome for consumers.”

The Open-Market Alternative

Under an open-market parking model, councils can approve multiple compliant parking apps and allow motorists to choose whichever one they prefer.

This introduces competition and allows motorists to use the app they want, instead of needing a different app for whichever council area they are in.  Meanwhile councils retain full control over parking rules, prices, and enforcement.

Benefits include:

• Lower fees for motorists through competition
• Greater transparency over transaction costs
• Improved innovation and service quality
• Reduced dependency on any single provider

“The solution isn’t complicated,” Mr Almog said.

“Councils simply need to allow any compliant apps to operate. The moment competition is introduced, fees fall and transparency improves.”

Parking App Fees Compared

Example:
A $10 parking session can result in a 65¢ fee using OPark, compared with $1.10–$1.20 using a provider taking advantage of a monopoly situation.

Across thousands of daily parking transactions in major municipalities, the difference can amount to millions of dollars paid by motorists each year.

A Proven Australian Example

The City of Greater Dandenong has already implemented an open-market framework allowing motorists to choose between several parking apps.

The approach demonstrates that competition can be introduced without infrastructure changes or operational disruption, as it is primarily a governance and procurement decision.

Smarter City Solutions says the principle is straightforward: motorists should not be forced to use a single parking app simply because a council has selected it.

“Motorists should not be forced to download a single app chosen by a council and be forced to pay its fees without any options,” Mr Almog said.

“In every other part of our lives we choose the service we prefer — parking should be no different.”

National Conversation Needed

With cost-of-living issues increasingly sensitive in communities across Australia, and in particular with the significant increase in current car ownership costs due to fuel prices, Smarter City Solutions is encouraging councils to review whether their current system delivers the best outcomes for residents and visitors.

“When councils introduce transparency and competition, motorists benefit.”

Smarter City has written to councils across Australia inviting discussions on how an open-market approach could be implemented locally.

END

Media Contact

James Miliankos
National Sales Manager
Smarter City Solutions | +61 418 190 418 | [email protected]

Smarter City Solutions is an Australian technology company delivering integrated, cloud-based parking, enforcement and permit solutions that help cities and campuses operate more efficiently and improve the urban experience for users and operators alike.