Sunshine Coast Council Division 2 Councillor Terry Landsberg said Council was committed to supporting local businesses, revitalising the town centre and improving the visitor experience in Caloundra.
"This is a win for Caloundra," Cr Landsberg said.
"The first hour free parking initiative is a significant step forward for the community and is a great opportunity to assess its benefits.
Cr Landsberg said the initiative's progress would be evaluated in six months.
"We'll be evaluating the impact of the trial to ensure it delivers for our community and our local economy."
Sunshine Coast Mayor Rosanna Natoli welcomed the initiative.
"By making it easier for people to access and enjoy the Caloundra CBD, we're helping to strengthen local businesses and enhance the experience for everyone," Mayor Natoli said.
"You'll be able to stop to grab a coffee, pick up a paper or drop into a store.
"This trial reflects our ongoing efforts to support vibrant local economies."
Starting on 1 September 2025, the first hour of parking in the Caloundra CBD will be free, applicable once a day per number plate. After the first hour, a fee of $2 per hour will apply.
To access the free hour, motorists must enter their vehicle registration immediately upon parking, either at a meter or via the EasyPark app.
The trial applies to more than 300 metered parking spaces in the Caloundra CBD, which are subject to two-hour (2P) limits from 9am to 5pm, Monday to Friday, and 9am to noon on Saturdays.
A shopping experience full of charm and wonder
Bulcock Street and its surrounding streets are among the last original shopping precincts on the Sunshine Coast. With more than 200 businesses - many of them small, family-run and locally owned - Caloundra's CBD offers a unique and welcoming experience for residents and visitors alike.
Some shops have been in operation for nearly a century, passed down through generations, adding to the area's rich character and community spirit.