Perth Parking Levy: A Missed Opportunity For Parking

May 8, 2023

By Mosstyn Howell 

The recent Parking Levy, proposed by the Perth Government seems positive at first, however, when explored in detail, can place the general public in a worse-off position than they currently are.  

In theory, the parking levy is intended to add fees to parking spaces to deter commuters and reduce congestion in urban centres. However, this approach has not shown any success across the Australian parking industry, even though it has been successful in overseas markets. 

A few reasons for this include:   

– Parking operates on supply and demand – Parking operators price their spots based on supply and demand. This ensures they can always maximise capacity while not charging unfair prices for parking.  As an example, some spots would be much more expensive on a busy Saturday night as opposed to the midweek, and vice versa based on their location.   

 

– It doesn’t necessarily stop congestion – Increasing the price of parking will not deter commuters who are simply driving through busy urban centres to arrive at their destination. Therefore, it is no definite solution for reducing the number of drivers on the road.   

 

– Where is the money going? – The funds from the proposed parking levy from the WA Government were meant to go towards projects that would help traffic flow and reduce congestion. WA has decided this money can now be taken and used for any project. (1) This means parkers are paying for a tax that isn’t going to be used to later benefit their commute including the fact that parking operates on supply and demand.  

 

– Parking operators price their spots based on supply and demand, ensuring they can always maximize capacity while not charging unfair prices for parking. Additionally, increasing the price of parking does not necessarily deter commuters who are simply driving through busy urban centres to arrive at their destination, so it is not a definitive solution for reducing the number of drivers on the road. 

 

All in all, this is not a reasonable solution to the current parking troubles experienced in Perth, and may, in fact, worsen the situation. The UbiPark team, for this reason, urges the council to reconsider.  

 

 
(1)https://www.watoday.com.au/politics/western-australia/zempilas-tees-off-over-government-s-perth-parking-tax-changes-20230214-p5ckj6.html