City council commits to urgent review of parking app practices after transparency concerns

Parking in New South Wales has always been tricky, and finding a spot can often feel like a competitive sport.

But for those who have embraced the digital age, the convenience of using an app to secure parking seemed like a godsend.

However, this convenience might come at a hidden cost, hitting our wallets and potentially breaching state government rules.


In several council areas across NSW, drivers are being charged service fees through third-party parking apps, which could violate regulations.

These apps, which many councils have adopted, allow motorists to pay for parking via their smartphones.


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Service fees charged by third-party parking apps in NSW may breach state government regulations. Credit: North Sydney Council Government Website


Users scan a QR code on a parking meter, enter their vehicle registration number and the desired parking duration, and voila—parking is paid.

But there's a catch: some of these apps charge service fees of up to 10 per cent or more, which raises legal eyebrows.

The issue came to light when Crows Nest resident Simon Berry expressed his shock on social media.


Berry had intended to pay $6.90 for an hour of parking in the North Sydney Council area, but the total cost had jumped to $7.47 due to a service fee added by the parking app PayStay.

This fee, which goes directly to the company, was made clear at the payment stage.

Berry's frustration is understandable, especially when the alternative—a parking meter not operated by a third-party app—may not be conveniently located.

PayStay, which operates in North Sydney, charges an 8.25 per cent service fee.

In contrast, EasyPark, used by several other councils, including the City of Newcastle and Parramatta City Council, charges a whopping 11.5 per cent service fee.


Ballina Shire Council, which uses the EasyPay app for beach access permits, openly acknowledges that these purchases attract a surcharge.

North Sydney Mayor Zoe Baker has responded to the concerns by stating that the council was unaware of the hidden fees when the meters were installed and that they believed any additional costs would provide extra functions to customers, such as alerts when parking is expiring or the ability to top up remotely.

However, some of these alerts come at an additional charge.

The council is now committed to transparency and is urgently reviewing the matter.


Legal experts, including Julia Powles, an associate professor of law and technology at the University of Western Australia, have pointed out that under NSW parking regulations, councils are required to administer parking fees and ensure the total cost of parking is transparent to users.

The regulations stipulate that the fixed fee must be displayed near the parking space or device and that the parking authority should bear the cost of administering a pay parking scheme, not pass it on to consumers.

The parking meters, Touch N Go, and PayStay app are all operated by Orikan.

The company claims that when customers use the PayStay service, they see the total fee, including the service fee.

EasyPark also asserts that their service fee is explained to users upon registration and is broken down before the start of the parking session.
Key Takeaways
  • Service fees charged by third-party parking apps in NSW may be breaching state government regulations.
  • Customers can be charged service fees of up to 10 per cent or higher, which are only sometimes disclosed upfront.
  • North Sydney Council is conducting an urgent review of the practice after concerns about transparency and regulation compliance.
  • It's important for councils to ensure compliance with regulations and consider the broader implications of customer data used by profitable intermediaries.
Have you had a similar experience with parking apps? Share your stories in the comments below.
 
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its amazing these councils run OUR shire as they would if they were MAFIA stand over fleecing motorists via parking fees etc. What's next, remove all free spots so we will have to park in their money making spots (with reduced wages of parking cops ). no longer required, Part of managing OURshire the council has a DUTY to provide suitable parking arrangements for our citizen use. They seem to forget what they are there for
 

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