The City of Stonnington has approved a new one-hour free parking initiative at Elizabeth Street Car Park on Prahran Market days for a further six months, following an initial six-month trial.
From 1 September 2025, shoppers who spend over $20 at the Market will be eligible for one hour of free parking between 7am and 11am, accessed via a ticket validation system provided by traders.
This initiative comes as the State Government prepares to impose a new Congestion Levy on paid off-street car parks, including the Elizabeth Street facility. This is a levy the State Government expects Council to pass onto users of the car park.
Mayor Cr Melina Sehr said Council would like to do more for a key anchor of the precinct, such as the Prahran Market.
"Activating the Chapel St precinct is one of our focus areas this Council term, however we must now balance offering some level of financial support with the introduction of a new tax on shoppers and retail staff using Council carparks," Cr Sehr said.
"The levy will significantly reduce the financial viability of Council managed parking."
The initial six-month trial, which ran from November 2024 to April 2025, delivered encouraging signs. Elizabeth Street Car Park usage increased by 17 per cent, average market foot traffic rose by nearly 18 per cent, and average customer dwell time grew by over six per cent. Ninety-six per cent of community survey respondents supported the trial, and dozens of market traders shared testimonials noting improved visitation and atmosphere.
"We have heard from the community and from local traders. The free parking trial showed a measurable improvement in visitation and made it easier for shoppers to support small business," Cr Sehr said.
Council has confirmed it will continue to assess car parking strategies across the municipality and will conduct a full review of the impact of the Congestion Levy by the end of 2025.
"We will not sit by while the State Government introduces charges that damage the vibrancy of our precincts. This levy makes it harder to shop local and hurts the very traders we are all trying to support," Cr Sehr said.
"This is a targeted, balanced approach that delivers for the community without compromising Council's financial position. We will continue to advocate for a better outcome."
The one-hour free parking offer will be in place on Market Days from 1 September 2025. The program will be reviewed in early 2026 to measure impact and inform future decisions.
