VICTORIAN motorists will be slugged almost $750 in car registration payments next year after the Napthine Government revealed a $25 base increase.
The fee hike will see the base registration for a car hit $270.
When inflation increases, insurance and stamp duty components are added in, Victorian drivers face a $744.50 registration renewal charge next year.
The hike was announced as a revenue measure ahead of the Victorian Budget.
Stamp duty on the purchase of new or used cars will also increase, by about $40 for a $20,000 car.
Both measures will raise $137 million next year.
The original figures released by the government said total registration fees would be $791, however a correction was later issues showing the correct figure of $744.50.
Treasurer Michael O’Brien said he understood the measure would not be welcomed by motorists, but it was important the government presented a responsible budget that enabled it to pay for infrastructure upgrades.
“The $25 fee increase for motor vehicle registration amounts to less than 50 cents a week,” he said.
“We appreciate that any increase in car rego is not likely to be welcomed, but we do note that we will be delivering major transport infrastructure in this budget that will be of direct benefit to Victorians.”
The stamp duty increase will raise $37.5 million in 2014/15, while the light vehicle registration fee increase will raise $99.3 million.
Mr O’Brien said Victoria’s share of GST revenue was to blame for the registration and stamp duty increases.
Victoria’s GST share is down from 90 cents in the dollar to 88 cents, creating a $286 million shortfall, he said.
The additional charges would fund major transport infrastructure projects to be announced in the May 6 budget, and support opportunities for workers in Victoria’s ailing car industry, he said.
The registration fee for a light vehicle will be $270 in 2014/15.
The stamp duty increase will raise $37.5 million in 2014/15, while the light vehicle registration fee increase will raise $99.3 million.
Mr O’Brien said Victoria’s share of GST revenue was to blame for the registration and stamp duty increases.
Source:
Napthine Government announces base increase to register your car in Victoria
