On-street parking in the City will increase by 10 cents an hour and include a $2 minimum fee while off-street short-stay car parking will rise by 3 per cent at each parking premises.
City of Perth chief executive Gary Stevenson said 20 cents in every dollar motorists spent on parking in the City went to the Government under the Levy.
"This financial year, the State Government charged the City of Perth almost $14m," he said.
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READ NOW"The State Government will benefit from a further $3 million after raising the parking levy to more than $17 million for next financial year.
"The City simply cannot absorb the $3 million increase in levy costs."
Under the Perth Parking Management Act, the Government charges the City a levy for each parking bay that falls within its jurisdiction.
Mr Stevenson said the City would begin discussions with the Government over the escalating levy payments because it was unreasonable for increases to continue at the current rate.
New rates will be implemented from July 1.