New rego, licence tax hikes unfairly target drivers

The State’s peak motoring body has cried foul on tax hikes which would sting millions of Queenslanders and called for Tuesday’s Budget to ease the financial burden on drivers.

money, cars, running costs

RACQ’s Paul Turner said the Queensland Government would increase motoring taxes with vehicle rego and licence fee hits, tied to a hypothetical consumer price index (CPI) forecast.

“From 1 July, Queenslanders will be $20 worse off than they would’ve been if increases were capped at the actual CPI rate,” Mr Turner said.

“Motorists are being discriminated against, as these increases won’t apply to tax bases like public transport, which remain tied to the actual CPI rate, not the hypothetical forecast.

“Using a CPI forecast will see rego go up by 2.25 percent even though the annual CPI (March 2019 quarter) is only 1.5 percent. The CPI forecast hasn’t been predicted correctly in the past four years and we’re sick of Queensland motorists, who are already charged more for rego on average than the rest of Australia, being used as cash cows by the Government.”

Mr Turner said the State Government had promised to keep registration, driver licence fees and associated fees to CPI increases, not a guesstimate.

“Unless overcharged Queenslanders will be reimbursed when the actual CPI rate is established, it’s just not fair. At $200 per week, transport costs are already one of our biggest household expenses and it’s time that changed,” he said.

“If the Government’s serious about helping Queenslanders balance their budgets, it’ll freeze registration for three years and eliminate taxes on new vehicles through stamp duty.

“Motorists already pay more than their fair share and double-taxing cars valued above $100,000 is a short-sighted cash grab which only discourages people from buying the safest and most environmentally friendly cars on the market.”

Mid-Year Fiscal and Economic Review (MYFER) inflation/CPI forecast v actual:

Year MYFER Forecast Actual
2015-16 2.5% 1.6%
2016-17 2.5% 1.7%
2017-18 2.25% 1.7%
2018-19 2.25% 2%