NSW Liberal Leader and Shadow Treasurer Peter Debnam said it was another day with another Morris Iemma and Michael Costa tax increase.

"Morris Iemma and Michael Costa very quietly increased the Car Parking Space Levy to $900 a year in the CBD (up $20 on last year) and to $450 in Bondi Junction, Chatswood, St Leonards, and Parramatta (up $10)," Mr Debnam said.

When Labor came to power in 1995, the Car Parking Space Levy was $200 and only applied to the CBD and North Sydney. Michael Costa has just increased it to $900. When the tax was extended to other suburbs in 2000, the rate was $400. Labor has increased it to $450.

"Labor always reverts to form and instead of reducing the size of the bloated bureaucracy, it puts up taxes," he said.  

"This tax hike will ensure Morris Iemma and Michael Costa keep their title as the highest taxing State Government in Australia.

"With the budget in deep deficit, it was inevitable Morris Iemma and Michael Costa would look to increase taxes, rather than reducing the size of the bloated bureaucracy.  

"NSW doesn't have a revenue problem, it has a expenditure problem. Labor has it's priorities wrong. It bloats the bureaucracy while starving frontline resources of desperately needed funds.

"Instead of growing the bureaucracy that money could be used to employ more nurses, more police, reduce the school maintenance backlog, improve the road and public transport network, and provide more assistance to people with disabilities and mental illness," Mr Debnam said.