Really? Seems a bit unnecessary to take the spot completely out of action because the meter is broken.

Here (Melbourne), if a meter is faulty but the council doesn't know, you can SMS your numberplate and the meter ID to their faults number. The automated response tells you that the time limits still apply and gives you the number to call if you still get a ticket.

If the council knows the meter is faulty and they haven't fixed it, they generally put a locked bag over it so no one can use it with instructions that the time limits still apply.