If you park for longer than you should or forget to buy a parking ticket around some areas of Sydney, the fine you may return to will no longer be so hefty.

In an effort to take a "simpler and fairer" approach to parking and fines, the NSW Government will now cut fines by 25 per cent in areas such as Sydney Olympic Park, Centennial Park, the Royal Botanic Gardens and Parramatta Park.

Which parking fines will be reduced? Park continuously for longer than permitted

Park continuously for longer than permitted Park without current ticket displayed

Park without current ticket displayed Park after ticket expired

Park after ticket expired Stand vehicle in area longer than allowed

Stand vehicle in area longer than allowed Stop in restricted parking area

Stop in restricted parking area Park after meter expired

Park after meter expired Not stand vehicle in marked parking space

Not stand vehicle in marked parking space Remain in ticket-operated loading zone after ticket expired

Remain in ticket-operated loading zone after ticket expired Park without current loading zone ticket

Park without current loading zone ticket Park without paying meter fee

This means from July 1 the current $110 penalty is reduced to $80 in areas the State Government polices.

A review will now begin into all fines, excluding those that may affect road safety, as well as confusing street signs.

A grace period for tardy motorists will also be investigated.

As the State Government issues only 10 per cent of fines, councils are being pushed to follow suit and legislation will be introduced to allow greater flexibility.

"A lot of the time we see councils blaming the New South Wales Government for the level of the fines," State Treasurer Dominic Perrottet said.

"So now the ball's in their court, we'll see if they reduce them."

A review will also be conducted into confusing street signs. ( ABC News: Meredith Griffiths )

"I think rather than mandate that they reduce their fines, giving them the flexibility to tailor fines to suit their needs … will be something that they benefit from."

But, that suggestion has been rebuffed by City of Sydney councillor and Local Government Association president Linda Scott.

Ms Scott made the point that a third of the money collected from local council fines goes straight to the State Government, when it could be used for local infrastructure like sporting fields, childcare centres and libraries.

The councils that make the most on fines 1. City of Sydney - $35,000,000 2. Inner West Council - $13,280,532 3. Waverley - $9,206,362 4. North Sydney City - $7,882,601 5. Northern Beaches - $7,476,722 6. Canterbury-Bankstown Council - $7,174,699 7. Woollahra Council - $6,193,109 8. Randwick City Council - $5,211,116 9. City of Parramatta - $5,200,918 10. Willoughby City Council - $5,036,950

"We would welcome the State Government announcing that money could stay with councils and be used on infrastructure and services in the best interests of the community," she said.

"The State Treasurer should not seek to make light of the important decisions and budgetary challenges [local councils] face."

In the last financial year, motorists paid more than $172 million in parking fines to NSW councils and with the current financial year still not at a close, councils have already raked in $157 million in fines.

The state's peak business organisation says the intentions of those councils who do not reduce the cost of fines will be made very clear.

"It will be pretty clear now which councils want to work with their residents and businesses, and which ones are simply interested in revenue raising," NSW Business Chamber chief executive Stephen Cartwright said.

The package forms part of the State Government's budget, which will be handed down on June 19.