Rego Fees Should Be Reduced

Does anyone believe rego fees should be reduced during the lockdown period? I just wanna see everyone's thoughts on the topic.

Reasons why I think:
I use my car like 1-2 short trips to my nearest supermarket during lockdowns and can't go anywhere. (approx 15km a week compared to around 150-200)
The government isn't doing more road works even with the severly reduced traffic.
Can't even go for a drive because I want to because it doesn't align with the lockdown laws.
Fuel tax is already plenty especially with the skyrocketing price of fuel.
Less accidents due to less cars and other factors on the road (TAC charge portion of rego)

EDIT: I'm fine with paying taxes and rego, I just think its bullshit that the government is restricting the usage of our cars but we still have to pay full price for rego :)

Comments

  • +68

    It only goes up.

    • -9

      OP also doesnt seem to realise that his 'rego'… being $400-$600 a year is a drop in the bucket to the vic roads and to vic dan

      Last time I went to the services office there was a dozen staff there all making $800-$1k and up.

      Rego would not even pay the vicroads wage bill!

      Its a compulsory membership fee to drive your car. That's it. It goes up with cpi.

      They assume that if you have a car you have a job and have budgeted for these bills.

      You dont drive any more? Your problem. Pay us bitch. We're not your friends in the govt. We're not gonna give you a break ever. What do you think this is? Your grandmothers birthday card?

      You dont like it sell your car and take public transport (if your time is truly worthless).

      • +11

        Not sure why you’re downvoted, pretty spot on assessment

        • +1

          Car insurance should go down!!!

          • +1

            @capslock janitor: nah, but they should just ensure drivers… if you own 2 vehicles, you cant drive 2 at a time… every driver should be insured

            • +2

              @siresteelhell: Because only one car get stolen at once time as well… Only one car can get damaged by a falling branch…

              • @hts: neither scenario which rego covers anyway

          • @capslock janitor: car insurance is built on the premise that they have hired 1,000 people to invest the $10 mil in premiums coming in so they make $20 mil. so they can pay out of $15 mil. of smash repair bills while they split the $5 mil. left over on sundry costs wages and the left over is profit which goes out on shareholders

            in the middle they will protect themselves by re-insuring some of those premiums with other companies

            you dont drive in a lockdown? well we dont care, we got your money and we have fixed expenses

            if we have less smash repair bills then that's better for our shareholders

      • +1

        Rego isnt the only revenue raiser they, there are many others including taxes. All the fines, fees for a vast array of rules / revenue raising items. Fuel taxes. Besides its not just one fee goes to the department. Its basically the way the government decides to spread out all the cash they get from australians. One of the highest taxed countries in the world when you look at all the taxes and fees we have. Double dipping and triple dipping in some areas, even the Harvey Norman Tax is a joke.

        • +1

          Just FYI in case you want to learn.
          Basic graph. TLDNR
          https://en.wikipedia.org/wiki/Taxation_in_Australia#/media/File:Tax_revenue_as_a_percentage_of_GDP_(1985-2014).png
          Full article convering all the taxes
          https://en.wikipedia.org/wiki/Taxation_in_Australia

          We are only just above the USA which is pretty good considering how much better we have it. There are certain people that want you to beleive we are highly taxed so they can grab some top teir tax breaks themselves. That said, Im not saying we shouldnt have better structured taxes! Just that the total isnt out of whack.

      • Completely agree. This is life. Nothing comes for free.

        • -2

          But you could earn $8k+/week for being premier or public servant KEWK

  • -1

    When you renew your policy one of the criteria often selected is how many kms will you travel in the year, reduce that number and your premium also reduces…

    • +1

      who would checks/enforce this?

      • When an accident occurs all these things are checked by the insurers for validity, falsify the number and be completely out and they just won't pay the claim

        • +18

          They won't refuse the claim. It's only an estimate at the time and your duty of disclosure ends when the policy is issued.

          Even better, as of October 2021 (I think the 5th) duty of disclosure ceases to exist for consumer insurance. Then it will just be "to take reasonable care not to make a misrepresentation". So even less reasons to cancel a policy.

          For policies that do have an odometer reading like woolies and budget direct, there is just an extra excess if you go over.

          Stop scaring people.

          • -3

            @meowsers: Yawn, people and their assumptions that people are out to scare or fearmonger.

            If someone intentionally opts to misrepresent their likely kms in a year that could be determined as fraudulent behaviour, thats a fact. Erroneous information can lead to non payment (not will but could dependent on circumstances) …at the end of the day like anything its up to the individual to read their policies and understand terms and conditions of what they are signing into prior to agreeing and making payment.

            • +2

              @BillyStorm: I'm on drive less pay less with Woolies insurance. It is simply an additional excess if you're over.

              I'm currently 3k over my reported Km/year, just made a not at fault claim and they didn't even care.

              I've spoken to multiple people from the company and they all just say, if you're over, it's just additional excess.

              • -1

                @0lllllll0: Everyone seemed to of missed the key words in my original comment regarding the kms - 'completely out'.

                Ie. not reasonably misjudged/misrepresented. Being 3-5km over passes the pub test being 30-40k and knowing this was going to be the case but still selecting 10km estimated travel a year when entering into the agreement would not pass the pub test and give grounds for non payment. Lesser amounts they may opt to apply additional excess.

                Insurance companies pay their investigators for a reason if they can identify something to negate the requirement to pay out on a claim they will.

                At the end of the day it's always a case by case basis and once again comes back to reading and understanding your individual agreement and clarifying anything you are unsure of prior to signing.

                • -1

                  @BillyStorm: I should add that I reported driving 1k a year to get the lowest premium.

          • @meowsers: +1 they won't refuse the claim, or at least mine won't.

            I'm with enthusiast.com.au for my weekend car and if I go above my specified kms there is an additional $2000 excess. Just need to keep an eye on it and make sure you don't exceed.

            They've said I can always call up and adjust and they'll prorata me for the difference for the term.

    • +2

      Noting thats for insurance side of things, on the rego front its a decent argument but don't see it happening.

    • Agreed, if insurance companies factor in your yearly km's into the insurance premium surely your rego (of which is 50% insurance) should also do this.

      Unless we're going the same way as the health system in that those that use it the least subsidise those that use it the most.

      If risk/likelihood of crashing goes up so should your premium and vice versa.

      Albeit it would be hard to control the auditing of this (especially in WA where you don't need yearly/bi-yearly pink slips)

    • My premium went up 50c a year when I halved my km's.. Go figure

  • +1

    Reasons:
    Fuel tax is already plenty especially with the skyrocketing price of fuel. <—— Fuel has not gone up in years, infact it hasnt gone up in 15 years at least, its in the same range $1.30 - $2.00 depending on fuel type… The difference between start of the cycle price and end of the cycle price has increased to about 50c, but the price is in the same range since 2006

  • +13

    Registration is cheap in VIC. It's the TAC component that's expensive.

    • I'm not an expert on what TAC covers but if you have insurance do they overlap at all?

      • +7

        The Transport Accident Commission (TAC) provides personal injury insurance, it does not cover any property damage.

      • +2

        But, you are in Melb?
        Surely if you pay your car rego you would see the TAC component? Any didn't wonder what it was?

        • I know what it covers but don't know the specifics. Would the average third party insurance cover everything the TAC covers?

          • @HelloOzB: Possibly, but TAC are very good at managing people through injuries and doctor appointments. I've heard this secondhand through people that have had to use it but never ever heard anything bad about it.

            • @Mechz: Second this. It's not often you hear GOOD things about any gov department, so your judgement is generally on how much people talk shit about them; and given almost all of us here would love to hate them given how much money of ours they get every year, I still don't hear complaints!

            • @Mechz: This is not true at all. My family member is claiming against TAC at the moment. They are severely underfunded and basically refused to pay as much as they could. They even denied their own OT's assessment of what should be done saying it is not payable (their OWN OT). Will be appealing to VCAT shortly. They have basically provided no support at all and the injury is getting worse as a result. It is so difficult to get anything out of them.

          • @HelloOzB: I doubt it, but you are provided with all the info.
            The better question would be is 3rd party insurance required as you are paying the compulsory TAC cover?

          • +8

            @HelloOzB: It would be illegal for private insurance schemes to offer coverage for what the TAC covers in Victoria since TAC insurance is compulsory.

            In Victoria TAC insurance covers the liabilities of personal injuries of persons in motor accidents.

            Other third party insurance schemes cover the property damage liabilities for an accident caused by the policy holder's car. They sometimes include extra coverage such as fire and theft.

          • +3

            @HelloOzB: TAC (aka CTP, Compulsory Third Party) covers damage to humans. All other 3rd party insurance in Victoria is for property damage. There is no overlap.

            I highly recommend you learn the differences between TAC/CTP, 3rd party, 3rd party fire & theft, and comprehensive. ASAP, before you have an accident and find yourself in court.

    • -1

      I have 4 mates bikes rego'ed at my place in vic, they all live in NSW, have done for several years without issue.

      • +2

        If they have an accident involving injury in NSW, you can bet your bottom dollar the insurers will be around to your place in a flash. I believe they don't have to pay out on claims where the vehicle has been driven out of its registered state for over six months. The cost of paying for personal injury claims can run in to the millions.

        That's not a bargain.

        • You'd think so… but its happened a few times and they have always been paid… one got paid before he left hospital :D

    • I remember when rego went down (for 1 year), because the TAC ad's were working and there were less accidents.
      Then Jeff Kennett realised there was a massive pool of money that he could use for general revenue and he moved it out of being specific for TAC claims and into the general revenue pool.
      Evert since then, the price has only ever gone up.

      • +7

        I don’t think you understand taxes.
        Rego is one of the few optional taxes - you can sell your car and stop paying it.
        Otherwise, it is a fixed fee to drive 1cm or 1million kilometres.

        If the government collects less rego, they must cut spending or raise other taxes.

        • +3

          I do understand taxes, but due to the less usage of cars they don't have to spend more on maintaining roads and paying out for accidents

          • +5

            @HelloOzB: You are paying less tax.
            Less fuel tax, based on your reduction in your car use.

            Wasn't this topic one of many similar on here, last year?

          • +3

            @HelloOzB: If you use the not having to spend more argument, then it can be said.

            They are paying public servants wages when they cant work, so when the lockdowns cease they will have to spend more to get the work done, that wasnt done during lockdown. (known as fixed costs).

            And as mskeggs said, you dont pay based on distance anyway, and again like you did say below, things are exploitable. If there was a distance fee, that will require annual checks on on this. Which would add to compliance costs and where know we that goes.

            And to be as ridiculous are you advocating gym useage fees like the more you lift, run, pedal, the more you wear out the equipment so you should pay more/less based on this usage.? Just saying.

            And why not age based rego fees on age risks, whereas now its same rate. Or based on who creates the most risk to scam the TAC most?

          • +1

            @HelloOzB: Your registration fee doesn't go towards maintaining the roads.

            As for the TAC insurance your argument holds water if there is a long term sustainable reduction in payouts. The amount paid out by insurance schemes aways varies from year to year and isn't predictable so insurance schemes generally make allowances to keep a reserve so they don't get caught out in a year with higher payouts. So long as the surplus isn't wasted, it will defray the need for future premium increases.

            • +1

              @trongy:

              Your registration fee doesn't go towards maintaining the roads.

              Actually in Victoria, it does indirectly. From https://www.vicroads.vic.gov.au/registration/registration-fe...

              The registration and licence fees we collect are paid into something called the Government’s Consolidated Fund (GCF).

              The GCF helps us maintain, redevelop and build better roads and road related infrastructure for the future.

              • @NeutralName: The same GCF that also funds State parliamentarians salaries, the public service, police and emergency services, schools, hospitals and so on?

                Why yes, a small fraction of the registration fee will indirectly fund road infrastructure, but most of it will be spent on other parts of the state budget.

              • @NeutralName:

                Actually in Victoria, it does indirectly.

                Well they'd like you to believe that… but the roads round here are worse than dirt roads.

        • +1

          Rego is one of the few optional taxes - you can sell your car and stop paying it.

          True. But at the same time the lack of investment in public transport means selling your car and you're options become a lot less.

        • If the government collects less rego, they must cut spending or raise other taxes.

          They could just install more speed cameras.

      • +5

        Rego if you really look into it has never been based on distance travelled. It just gives you the right to drive that vehicle for the specified time frame (as is a tool used for 'maintenance' and to ensure that your vehicle is 'roadworthy' (easy to get dodgy's).

        Its not like they charge you more if you do more kms, so we can't really ask for any benefit when it goes the other way.
        And yes its a hard pill to swallow but that's life, you're likely making savings elsewhere so in the end why bother over this.

        I own 3 cars, and none have travelled over 100km in 2 months (Syd Lockdown), but nonetheless I've got to pay my rego and leave it at that. I would however agree that CTP (TAC in Vic) should be dramatically decreased/ rebated for next year, based on extremely low driving volumes (and hence accidents) compared to what would be stated on CTP policies. This isn't something that any insurer will voluntarily do, so Gov should make some intervention to make it a bit fairer for us all.

        I realise i've gone on a rant here but I've already typed it so:

        Also your comments to fuel taxes are incorrect. The principal component of fuel costs are market-driven, and so it hasn't skyrocketed but instead what you see are market prices. Indexation was frozen from 2001-2015 @ 38.xxc/L and only resumed since, and thus only slightly increased to now. Currently at 42.7c/l vs 40.9 in 2018. If indexation wasn't frozen the rate in 2015 would have been 52c/L and approx. 55c now. With ever increasing fuel efficiency across the national fleet tax revenue per km travelled has plummeted over the last 20 years and continued indexation (compared to having frozen it) would've barely kept up.
        In all honesty Australia is in the bottom quarter in the world for fuel taxes (only above US, Canada, Mexico for OECD nations). Fuel taxes are realistically only about 25-33% of fuel costs whilst in many other countries is more like 50%. This is what allows them to invest and promote Greener alternatives (and acutally subsidise EV's) whilst we have some truly retarded mentality here to allow EV's to be taxed whilst keeping ICE taxes low.

        I love my cars and drive a v8 as my daily (albeit my commute is like 10km return), however I want the world to transition to greener energy sources. The most obvious option is to increase fuel taxes to reduce traffic volumes and more importantly to promote people to EV's or more efficient ICE's like is done in Europe.
        We should really have higher fuel prices of $2+ per litre (phasing out high sulphur 91) with additional proceeds directly and transparently funding transport infrastructure and EV transitions.

        • Its not like they charge you more if you do more kms

          But they do charge more for larger cars - like a small hatch vs SUV. So there's definitely a "quantity" factor contributing to the total cost of rego. I presume this is because of a projected impact that car size has on road maintenance?

          If that's true, then it's reasonable to say "my large car will not be impacting the road as much during lockdown". And so, a discount does actually make sense.

  • +4

    They don’t give you a discount if you’ve got two cars under one name, but can only drive one at a time.

    • +2

      I'm pretty sure they don't do this because its easily exploitable. They could do something like weekday rego and a weekend rego for people who have expensive cars they only drive on the weekends and not to and from work

      • +2

        This is available, and used by many, if you register one of your cars as a 'club' vehicle (with limited km/year).

        • Only on cars 25 years or older in victoria

          • @HelloOzB: 30 everywhere else. So realistically limits 90+% of people's weekend/track cars. I would totally support that idea though (where rego and CTP are 2/7's of regular and the car can only be used on weekends + public holidays) and have special plates/tags attached to identify them.

            Could then have a more expensive permit system to allow recreational use (i.e. weekday wedding/ extended road trip) that falls outside those days

            • @JDMcarfan: Would the cost of rego / TAC for those vehicles need to factor in the days or hours of allowed use, and the % of accidents that happen on those days / hours? I obviously don't know the data, but to be equitable the costs should be drilled down to align with the respective risks.

              • @GG57: Yeah in vic it's literally like you can drive 90 days so you pay 90/364. At least from memory when I had a bike on club rego, it's been a while.

                You generally would pair that with an insurance provider who will acknowledge the registration status. For me, that's enthusiast.com.au (although not on club reg for the current vehicle…until end of the year anyway).

                Shannons I've heard are great but they were about 3x the price for me across bikes and cars when I've inquired. (literally).

        • +3

          It's not minimum kilometres it's limited days of use.

          • +1

            @MS Paint: What if they reduce rego/ctp to effectively be $1.
            But your driver's license fee becomes something like $1,000 a year.

            That's what a co-worker was arguing to me. Another supported that since he has four motorcycles. It's kind of logical/makes sense, since you can physically only drive one car at a time.

            Another friend, from Europe, wants speeding/etc fees to be reduced massively. Like if you drive 10kph over, instead of paying AUD $300, you only have to pay $30 like in the EU. However, the demerit point system is what would be relied on instead. Therefore, the road authorities are forced to focus on proper "road safety" instead of just rent-seeking/fines/revenue raising behaviours.

            • @Kangal: Agree with this entirely. But don't imagine any universe where this would come to fruition.

              • @JDMcarfan: While these ideas can make some sense, there is the issue of policing such rules. As the OP has suggested in one of their replies "exploitation".

                Unfortunately (and fortunately) us beings are a very create lot. And the more complex the more creative we can become. So in the end much so called fairness gets eliminated by the costs of managing this.

                Lawyers make a living out of complexity. Thou shall not kill is now, except where x,y, z, ab, and so on…… and so on. (not being religious here, just an example)

    • This. I had to get rid of my runabout car because the rego on 2 cars was just too much to pay every year. I can only drive one car at a time ffs.

    • They don’t give you a discount if you’ve got two cars under one name, but can only drive one at a time.

      But you could still drive both those cars every single day if you choose. The OP's point is, nobody can drive anywhere during lockdown beyond 5km, of after 9pm. If that were the case all the time, the rego cost would be a huge rip-off.

    • +3

      No I have an affordable and reliable car and got the most cost effective third party that also covers me if an insured driver hits me up to 5k which is around the cost of my car. I fix everything on my car myself and have only taken it to someone else to get tyres done and a cat welded :)

      • +3

        I fix everything on my car myself and have only taken it to someone else to get tyres done and a cat welded :)

        You have a 😺welded to your car? 😂

        • +1

          catalytic convertor

          • @HelloOzB: TIL 🤓

          • @HelloOzB: What was the damage that it required welding?

            Or was it stolen?

            • +2

              @MS Paint: I sold my oem one for 800 and got a magnaflow brand higher flowing one (still legal) for 350 installed. So profited 450

              • @HelloOzB: big brain move right here haha. Nice.

      • +1

        covers me if an insured driver hits me up to 5k which is around the cost of my car.

        Think you’ll find it’s uninsured driver coverage. If the other (at fault) driver is insured, you need to do the leg work and claim through the at fault drivers insurer.

        If you are at fault, you are covered for their damage but not your own. Sounds like you know that, but others don’t get it, repeated for clarity.

      • I also got budget TP cover for my car valued at 5k. But when I got rear-ended my insurer told me to deal with the other party and his insurer on my own whereas they would have handled everything if I got comprehensive. Even though we exchanged details the other party refused to lodge a claim on his TP insurance and his insurer just fobbed me off as no claim was lodged. I will now need to pursue legally if I still want him to pay, which just adds to the stress and costs. Lesson learnt.

  • +1

    Having a personal car right now is downright a financial burden. Done less then 2000 KM in the last year and a half from a near new 2019 corolla.

    • +4

      Well if you're gonna complain about it just sell them because you'll never get a better price.

      • +2

        But if I have an emergency, what will I drive? With everything that is going on, I'm just paying for the peace of mind and security of having a car sadly.

        • +1

          Call 000? I think your definition of emergency is too broad and your reliance on cars needs a rethink. Plenty of rideshare taxis available that cost a pittance compared to car ownership.

          • @Mechz: I suppose that is a fair option but with COVID I'm reluctant to use someone else's car.

        • +1

          Uber?

      • Yeah but who's going to buy it, given that many are in the same position?

        • You tried buying a used car lately :(

    • Sorry but that’s BS. There have been no restrictions in Sydney until very recently that has prevented you from driving.

      • How is that BS? I was given a company car and I haven't driven my personal car a lot in the last year and a half. With the ongoing issues and uncertainty coupled with constant state border lockdowns, where was I going to go? Even with the major lockdowns only being recent, reading the amount of people on Ozbargain losing their deposits and bookings due to COVID has made me steer away from going anywhere…

        • +4

          So your issue is really that you have a company car and didn't want to go anywhere. There was literally nothing stopping you driving your car. I mean you portray it as if the only car driving people do is interstate, which is BS. Most people do most of their annual kms within 250km of home.

        • +2

          I was given a company car and I haven't driven my personal car a lot in the last year and a half

          Should have sold your personal car for a good tidy profit.

      • +1

        The "claytons" lockdown Sydney now has is a joke anyway

  • +12

    Rego doesn’t buy you anything, it is a tax.
    If you lower it, you must raise other taxes, or cut spending.
    Spending has recently been exceedingly high, and other tax cuts have gone through in the last year, and more are planned (unbelievably reckless, in my opinion).

    So I think the chance of getting yet more tax cuts on rego are very close to zero.

    • +2

      Cutting a tax now is only going to cause more tax later. Govt is paying out millions more than normal for lockdown relief plus not earning as much from all the stuff that isn’t happening.

      • There will be more taxes for sure.

        It is the price we're going to pay for "keeping the economy open" expecting the CCP to contain COVID19. An authoritarian country shutting itself down and welding people into their apartments. Should have been a wake up call. The on going cost of vaccination, then booster shots (making sure people won't forget it) will be a long burden.

    • Probably will just raise fuel taxes.

      If fuel taxes went straight back to the states they probably could do away with rego. Because it really then becomes a kilometre based tax.

      Get rid of rego and put in kilometre based tax will stop those complaining Tesla drivers (in Victoria anyways)

      • There is already a km based tax, except it is collected when you purchase fuel.