Get ready to pay more for your car

BUNDABERG motorists driving a four-cylinder car will be slugged an extra $12 when it comes time to renew their registration.

The 3.5% hike will come into effect from July 1 and has angered industry representatives who say the hike is "unfair”.

"Vehicle registration is simply a tax. To see that this tax on motorists will increase by 3.5% is unfair, it's almost double CPI and puts added pressure on already tight household budgets,” RACQ spokeswoman Kirsty Clinton said.

Car registration costs in 2016, supplied by the RACQ.
Car registration costs in 2016, supplied by the RACQ. Hayley Nissen

"Queensland is one of the most expensive states in the country for vehicle registration, significantly above the national average. This is despite the CTP portion of the bill being one of the cheapest in the country, well below the national average.

"RACQ is disappointed the Queensland Government has increased fees again. We plead with the government to freeze increases to reduce financial pressure on Queensland households.”

Member for Burnett Stephen Bennett is in agreeance and has begun an online petition to cap car registration.

Mr Bennett said the jump was almost double the rate of inflation and was putting a real strain on the family budget.

"Families are already facing enormous financial pressures trying to keep up with every day living expenses. Families just don't need this added strain,” he said.

"It's absolutely outrageous that the Labor Government thinks it can continue to treat people like cash cows just because they can't balance the books.”

Car registration costs in 2012, supplied by the RACQ.
Car registration costs in 2012, supplied by the RACQ. Hayley Nissen

Last year, the cost to register a four-cylinder vehicle in Queensland, excluding CTP, was $352.30; six cylinder $527.30; and eight cylinder $717.50.

A four-cylinder registration in NSW was $353; Victoria $284.70; Western Australia $284.94; South Australia $219; Tasmania $238.38; Northern Territory $159; and the ACT $376.70.

Backtrack five years to 2012 and the cost to register a four-cylinder car in Queensland was $328.90; NSW $272; Victoria $226.60; Western Australia $205.88; South Australia $137; Tasmania $202.40; Northern Territory $80; and ACT $269.90.

Member for Bundaberg Leanne Donaldson said it was important to put the changes into perspective.

"I realise that many people in Bundaberg struggle with cost of living pressures, and registration can be a contributor to that. However, I think it's important to put these changes in perspective,” she said.

"The Palaszczuk Government went to the state election with a commitment to not increase taxes beyond the level already set by the previous government and we haven't.

"The previous LNP Government moved to end the rego freeze in their 2014-2015 budget Forward Estimates and confirmed that in their mid-year economic statement in late 2014 by Tim Nicholls as Treasurer.

"Revenue raised through registration fees is used to deliver much-needed road infrastructure across the state, creating jobs and improving safety and efficiency. This includes funding for projects such as the Bruce Hwy Cooroy to Curra realignment (Section C), Burnett River Bridge replacement on Monto-Mount Perry Rd, Burrum Heads Lions Park boat ramp and widening of the Bruce Hwy at Doghole Creek, north of Howard.

"These funds are also used to fund planning studies for future upgrades such as finalising planning for bitumen sealing the remaining gravel sections on Monto-Mount Perry Rd and planning for local cycle upgrades.

"Another program funded by registration fee revenue is the National Injury Insurance Scheme, which gives motorists peace of mind if they are injured where there is no at-fault party.”

Ms Donaldson also said calls by the LNP to tie registration to CPI would leave a $300 million hole in the budget over the next four years, assuming a constant inflation rate of 1.5% each year.

"The LNP need to be honest about what services they will cut if they decrease the rate of rego growth. Will it be a return to asset sales? Or will it be slashing roads funding? In which case they need to outline each and every roads project they plan to scrap.”

Mr Bennett said the Labor Government didn't have a great track record when it came to dealing with the issue.

"When they were last in office they increased the rego by 30% in just four years, and here they go again slugging drivers.

"When the LNP was in office, we took action and froze rego after those massive increases under Labor.”

He said last year the LNP also moved a motion to direct the Labor Government to keep their car rego increase to the inflation rate, rather than the 3.5%, but the government opposed the move.

Mr Bennett said a future LNP Government would "offer families a real economic plan to keep cost of living pressures low”.

"We will again link registration costs for family vehicles to the consumer price index,” he said.

Sign the petition at www.fairerrego.com.au