One employer said the limited consultation showed an "arrogance and disregard" for those making a living in the area, while the Canberra Liberals said they would "not proceed" with what the government has proposed.

Margaret Hadfield runs a gallery and studio in Colbee Court where she offers seven art classes a week, and said the extra cost would make people think twice about coming.

"It's going to kill my business I think," she said. "It's a big deterrent, and the first 2 hours should be free.

"We're such a spread out city that people need their cars."

Parking with a time restriction of two hours or less will cost drivers $1.70 for one hour and $4.50 for two hours, while in unrestricted areas costs will be up to $9 for the day. For a full-time worker, that would be an annual hit of $2,160 from July 1.

Transport and Municipal Services Minister Meegan Fitzharris announced the new arrangements on Thursday, saying they were "to better manage parking demand from the Woden Town Centre" and would increase vehicle turnover, making it easer for visitors to find a park.

But Lennock Motors director Peter Axiom, whose business employs 200 people in Phillip, said the government move had missed its mark with the expensive fees, which would hit the 3,000-plus workers in the area.

"All employers in the area have similar trouble attracting staff," he said. "We've probably got 30-40 trainees and apprentices on trainee type wages, and a full-time motor mechanic apprentice earns $16,000-$17,000 a year."

Phillip Business Community president Robert Issell said he had been contacted by more than 20 disappointed businesses within 24 hours of the decision. It was up to the government to find a proper solution to create parking turnover, but window permits for immediate workers and using available land to build more car parks would help, he said.

Deputy Liberal leader Alistair Coe said the Barr government should delay their measures and reconsider the options, in consultation with traders.

"The option of permits for staff is certainly something worth considering, as is additional car park construction," he said.

A spokeswoman for Ms Fitzharris said on Friday the government would continue to consult with local businesses about the mix and types of pay parking that will be implemented, but the expansion of pay parking, flagged last year, provided for a consistent scheme in the area and costs were in line with those in other group centres.

"A small number of additional short-term car parks will also be created, with obsolete bus stops to be removed from the area," she said.