It will cost motorists $2.80 an hour to park in the Lichfield St Car Park from 6am-6pm every day. All day parking would be $10, while the night-time hourly rate would be $2.50.
In comparison, it costs $2 to park in The Crossing, West End and Hereford St car parks for up to half an hour, $4 from 31min to an hour, with an extra $2 every half hour thereafter.
City councillor Jamie Gough said the Lichfield St Car Park and the free parking trial would bring more people into the central city and, in turn, benefit private operators.
He said people also liked convenience and, if they wanted to park closely to a particular place, they would pay more to do so.
The city council was not looking to undercut private operators, but it had to do what was best for the public, he said.
"We have the public's interest at heart."
Cr Gough said the private car parking buildings leased spaces to corporate vehicles and fleets, so short-term parking was not their only revenue.
The Lichfield St Car Park has 805 parking spaces, including 24 disability parking spaces and 10 charging parks for electric vehicles, plus a bike stand on the ground floor.
The Lichfield St Car Park will replace the one demolished after the February 22, 2011, earthquake.
