‘Infuriating’ cashless parking meters called into question

Cash-free parking meters are becoming more common around Australia, but not everyone is a fan.

Traditional parking meters are being phased out in favour of in-app payments across various council areas in Australia to streamline the parking process, but residents have expressed anger over their unavoidable transaction fees and accessibility challenges.

North Sydney Council is the latest area to remove the majority of its parking meters and force residents to use an app or walk further away to a physical parking meter. However, the digital payment system has generated controversy online over its unavoidable 8.25 per cent transaction fees.

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The council rolled out the cashless, cardless system in mid-2024, beginning the transition by removing the majority of physical parking meters and replacing them with instructions on how to use the ‘PayStay’ parking app to make a payment and adjust your parking length.

There are still physical parking meters where you can enter your licence plate to pay for your parking, but they have been reduced in number and only accept card payments, not physical cash.

North Sydney Council is encouraging motorists to use the in-app payment system with instruction signs littering the streets, but paying via the website attracts a hidden and unavoidable surcharge that has plenty of residents feeling frustrated.

The hourly rate for parking in the area is set and advertised at $6.90, but when paying for it on the app, the surcharge boosts it to $7.47.

North Sydney resident and TikTok personality Simon Berry has been documenting the change on his social media accounts. He first pointed out the surcharge and later discovered that it may violate state government laws.

Berry pointed out state legislation stating that “the costs of administering a pay parking scheme are to be borne by the parking authority”.

“In my opinion, the 8.25 per cent service fee is part of the cost of ‘providing’ the parking scheme,” said Berry.

@simontheberry Replying to @Mina ton According to the Roads Transport (General) Regulation 2021 s96(1), “The costs of administering a pay parking scheme are to be borne by the parking authority”. Do private parking service fees fall under the cost of providing the pay parking scheme? Thanks to @vmarsreads for discovering this #australia #pricegouging #surcharge ♬ original sound – Simon Berry

The council later responded to Berry’s criticisms, with North Sydney Mayor Zoe Baker telling ABC Radio Sydney the council did not know about the hidden fees when they installed the meters.

The Mayor also stated that meters that don’t require the use of the app were available at least every 300 metres in the council area. Berry hit back on his video of him running to a non-app meter and receiving a fine while looking for one.

It’s not just North Sydney Council that is adopting cashless systems with sneaky surcharges, either. Berry pointed out that another popular parking payment app, EasyPark, charges an 11.5 per cent surcharge and operates in multiple councils across Australia (locations can be found here).

Similar parking systems have garnered criticism on online forums, with a Reddit user complaining of the same surcharge and no cash option in South Melbourne.

“First time using on-street parking in a very long time near south Melbourne market. Parked in a 1P metered parking zone and had to pay 12c card surcharge. (No option for cash payment anymore). Although small amounts of money, this compulsory card surcharge at such a high percentage is mildly infuriating,” said the user.

Further issues with the cashless system have been pointed out with a resident complaining on the Ben Fordham Live radio show on 2GB about the complexities of the system.

“Will this become the norm everywhere? I’ve parked in Crows Nest, and there’s no physical meter, just a sign saying pay by phone and directing you to a website. When you get to the website, it tells you to download an app,” said the listener.

“I’ve used this stupid system. An older person has been standing next to me, struggling to figure it out. What happened to anonymously chucking a coin in a meter and getting on with your day?”

How does cashless parking work?

Each council will use a different system, but the majority of councils use the aforementioned EasyPark or PayStay apps. A small handful of councils such as Wollongong City, Brisbane City and some private companies also use an app called CeloPark.

These apps all operate in the same way: You download the app, enter your vehicle’s registration, select the street you are parked on and use your pre-saved payment method to deduct payment.

Parking inspectors will then be able to see if you have paid for parking through the app and how much longer you have left before your parking expires.

Do you have to pay the surcharge for cashless parking?

Yes, PayStay charges an 8.25 per cent surcharge on top of the parking cost, while EasyPark adds 11.5 per cent.

CelloPark charges $1.99 per vehicle in your account per month, but it says: “This is charged on a ‘didn’t use—don’t pay’ basis, which means that if you didn’t use the system at all during the billing cycle, you will not be charged this fee”.

There are advantages to app-based parking payment, such as cancelling your parking early if you don’t use your entire allocated time, and receiving a refund for the unused time – something not possible if you pay in cash.

Councils are permitted to add a surcharge when paying via card on a meter, but the Australian Competition and Consumer Commission (ACCC) states: “The surcharge must not be more than what it costs the business to use that payment type”.

The ACCC also states: “If there is no way for a consumer to pay without a surcharge, the business must include the surcharge in the displayed price”.

That means that if there are no other ways to pay for your parking, the council must make it clear there’s a surcharge in the advertised cost.

If you feel like you have been unfairly charged, you can report it to the ACCC here.

Do you need to use a parking app to pay for parking?

Although apps are replacing traditional parking meters, councils such as North Sydney still offer alternatives that allow you to type in your plate and pay by card without attracting a surcharge.

However, a short walk up Blues Point Road and Miller Street in North Sydney suggests this kind of meter can be hard to find, forcing you to make the walk or else pay via the phone app.

Instructions printed on the top of the QR code plaques tell you that if you want to avoid a surcharge, you will need to walk up the road to find the meter.

As far as other councils go, North Sydney is the most aggressive in its plan to completely eliminate the parking meters in lieu of phone app payments. Other councils around Australia still offer the meter as a main source of payment and just recommend the app for convenience.

However, cash-based meters are beginning to thin out, which may be a concern for older citizens who prefer to pay in cash. What also needs to be considered is that disabled permit holders do not need to pay for ticketed parking areas.

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