Motor vehicle registration fees in Queensland
A Queensland car registration bill consists of three components:
1.
2.
3.
Base registration fee
Traffic improvement fee
Compulsory Third Party (CTP) insurance charge.
Revenue from the base registration and traffic improvement fees go to the State Government, while
the CTP fee goes to the nominated insurance provider.
Over the next three years, Queensland registration fees for private-use cars weighing less than 4.5
tonnes, excluding CTP charges, will remain frozen. Motorists can expect no increase in either the
registration or traffic improvement fee components of their registration bill until July 2015. In the
Motoring Matters for every Queenslander campaign in the lead-up to the 2012 state election, RACQ
called for this three-year freeze on Queensland vehicle registration charges, so we welcome its
implementation by the new LNP-led State Government.
Until July 2015, any changes to Queensland registration bills for private-use cars (under 4.5 tonnes)
will be restricted to the CTP component. This year, Queensland annual CTP charges for Class 1
Passenger Vehicles will increase from $318 to $318.80 on 1 July 2012, with a further change possible
later in the year. The July 2012 CTP increase for Class 1 Passenger Vehicles is shown in the bottom
half of Table 1 below:
Table 1: Annual Queensland Registration Costs for May 2012 and July 2012
1
Base Registration fee and Traffic Improvement Fee
Current (May 2012)
4 Cylinder car
6 Cylinder car
8 Cylinder car
$328.90
$492.30
$669.80
July 2012
$328.90
$492.30
$669.80
$ increase
$0
$0
$0
% increase
0%
0%
0%
Total Registration Bill (including CTP)
Current (May 2012)
4 Cylinder car
6 Cylinder car
8 Cylinder car
$646.90
$810.30
$987.80
July 2012
$647.70
$811.10
$988.60
$ increase
% increase
$0.80
$0.80
$0.80
%0.12
%0.09
%0.08
Notes:
The change in CTP premiums from 1 July 2012 differs according to vehicle class. The increase in CTP premiums of $0.80
from 1 July 2012 is for Class 1 Passenger Vehicles only.
In July 2011, CTP premiums for Class 1 vehicles ranged from $307 to $313, depending on the
nominated CTP insurer. From 1 July 2012, registration renewals will incur a CTP charge of $318.80.
This will result in an increase of between $5.80 and $11.80 to the total registration bill, compared to
last year.
1
The traffic improvement fee is $48.85
Registration Fee and Traffic Improvement Fee
Queensland motorists pay the highest vehicle registration charges in Australia, and over the past three
years, have contributed more than $3.6 billion in registration tax revenue. The registration costs for
Queensland motorists, relative to the rest of Australia, are shown in Chart 1 below. As each
jurisdiction uses a different method to charge fees, a number of assumptions are made, as detailed in
the notes to the chart, to ensure that the figures are a fair comparison. This data shows that the
Queensland registration fees are the most expensive in Australia. The figures do not include CTP
insurance, as the insurance charge goes to the nominated CTP provider rather than to government
revenue.
Chart 1: Annual Vehicle Registration Fees by State / Territory as at May 2012 (Excluding CTP)
Small car
Medium
car
Large car
Method
QLD
NSW
VIC
WA
SA
TAS
$328.90 $272.00 $226.60 $205.88 $137.00 $202.40
NT
$80.00
ACT
$269.90
Average
(excl.
QLD)
$199.11
$492.30 $321.00 $226.60 $276.00 $248.00 $227.40
$669.80 $459.00 $226.60 $328.59 $345.00 $272.40
$164.00
$244.00
$303.30
$432.80
$252.33
$329.77
Cylinders
Cylinders
&
Capacity
Weight
Weight
Flat fee
Weight
Cylinders
Cylinders
Notes:
Small car is defined as a 4 cylinder 2.01 litre car weighing approximately 1,100kg.
Medium car is defined as a 6 cylinder 3.51 litre car weighing approximately 1,500kg.
Large car is defined as an 8 cylinder 5.01 litre car weighing 1,800kg.
The definitions allow comparison of state registration systems due to the differing criteria and fees used to calculate total
charges.
This analysis includes all registration and related fees and excludes Compulsory Third Party insurance.
All figures assume a 12 month registration renewal.
These are the full prices for private use, not including concessions available to some car-owners.
Between now and July 2015, Queensland vehicle registration fees, including the traffic improvement
fee, will remain at $328.90 for a four cylinder car and at $492.30 and $669.80 respectively for six and
eight cylinder cars. This is a welcome reprieve from the escalating registration costs imposed on
Queensland motorists over the past few years.
In its first year of operation, the registration price freeze will see the Government forfeit a 1.3% CPI2
increase on registration, saving Queensland motorists $4.30, $6.40 and $8.70 on four, six and eight
2 1.3% was the March quarter 2012 annual CPI increase for Brisbane
2
cylinder cars respectively in the 2012/13 financial year. The registration savings for Queensland
motorists will continue for a further two years, with the price freeze ending on 30 June 2015.
The registration price freeze will slowly reduce the real cost of registering a car in Queensland. Over
the next three years, the registration fees in other states are expected to increase roughly in line with
CPI growth. Even after three years with no price increase in Queensland, RACQ forecasts indicate
that Queensland registration fees will remain the highest in Australia. This is illustrated in Chart 2
below, using a medium size, six cylinder car as an example.
Chart 2: Medium Size, 6 Cylinder Car - Annual Vehicle Registration Fees May 2012 and
Expected Fees May 2015 (excluding CTP)
Notes:
CPI increases of 1.6%, 3.25% and 2.5% have been applied to non-Queensland registration charges in 2012, 2013 and 2014
respectively.
Compulsory Third Party (CTP) Charge
The annual CTP premium in Queensland is currently $318 for Class 1 passenger vehicles. Maximum
and minimum CTP premium amounts are set quarterly by the Motor Accident Insurance Commission
(MAIC) in response to changes in costs and other criteria. From 1 July 2012, Queensland CTP
charges will increase from $318 to $318.80 for Class 1 passenger vehicles.
Each Australian State and Territory uses a different method of calculating and charging for CTP
insurance. This makes it difficult to compare CTP offerings across Australia. New South Wales, in
particular, has a highly fluid insurance system with CTP prices changing regularly.
Australian CTP fees are shown below in Table 2. The revenue from these fees goes to commercial
insurance providers rather than to government. The large variation in costs highlights differences
within Australia in legislative regimes covering personal injuries from motor vehicle accidents and the
cost of payouts.
The Queensland CTP fees are at least 20 percent lower than the average of all other states and
territories. They are higher than Western Australia and similar to, or lower than, the rest of Australia.
Table 2: Australian CTP Fees May 2012
QLD
Low Risk
Zone
Medium Risk
Zone
High Risk
Zone
NSW
VIC
WA
SA
TAS
NT
ACT
Average
(excl.
QLD)
$318.00 $403.00 $348.70 $245.01 $412.00 $350.00 $487.70 $526.60
$396.14
$318.00 $429.00 $402.60 $245.01 $480.50 $350.00 $487.70 $526.60
$417.34
$318.00 $517.00 $449.90 $245.01 $549.00 $350.00 $487.70 $526.60
$446.46
3
Notes:
This analysis includes all Compulsory Third Party insurance premiums, including scheme levies, administration fees and
GST. All costs are the annual full prices for private use, not including concessions available to some car owners.
Victoria uses the low, medium and high risk zones adopted in this table. High risk is predominantly the metropolitan zone.
For SA, low risk is the country zone, high risk is the metropolitan zone and medium risk is the average .
For NSW, low risk is the country zone and Newcastle/Central Coast zone, high risk is the Sydney metropolitan zone and
outer metropolitan zone and medium risk is the Wollongong zone. In NSW insurers risk rate and price CTP on the basis of a
range of factors including: the age of vehicle owners and drivers; age of vehicle; number of traffic offences; number of
demerit points; motor vehicle claims history; level of motor vehicle insurance; and comprehensive insurance no claim bonus.
For NSW, assumptions included a 2006 model car not comprehensively insured. NSW CTP prices were averaged across
three different age groups: 28, 40 and 60 year old drivers, each with no demerit points and no at-fault accidents in the last
two years.
Total Registration and CTP Bill
The total registration bill, including CTP insurance, is presented in Table 3 for cars in Australian
metropolitan areas. The bill received by motorists includes both the registration fees that go to
government and the CTP fees that go to the insurance provider.
The data shows that Queensland motorists face the highest fixed annual vehicle fees in Australia for
large (eight cylinder) cars. Across all vehicle classifications, New South Wales is the most expensive
state for vehicle registration and CTP insurance. Next highest is the Australian Capital Territory and
then Queensland. The state with the lowest total registration costs is Western Australia.
Table 3: Australian Total Registration Bill as at May 2012
Small car
Medium
car
Large car
Average
QLD
$646.90
NSW
$789.00
VIC
$676.50
WA
$450.89
SA
$686.00
TAS
$552.40
NT
$567.70
ACT
$796.50
Average
(excl.
QLD)
$645.57
$810.30
$987.80
$815.00
$838.00
$976.00
$867.67
$676.50
$676.50
$676.50
$521.01
$573.60
$515.17
$797.00
$894.00
$792.33
$577.40
$622.40
$584.07
$651.70
$731.70
$650.37
$829.90
$959.40
$861.93
$698.79
$776.23
$706.86
Notes:
This analysis includes registration, metropolitan CTP charges and related annual fees.
These are the full prices for private use, not including concessions available to some motorists.
The numbers in Table 3 are annual costs. The Queensland Government does allow payment of sixmonthly registrations and this attracts a small additional administrative charge. Queensland motorists
also have the option to pre-pay car registration in instalments through Australia Post3.
Conclusion
The RACQ welcomes the state government’s commitment to freeze registration costs for the
next three years. This will provide some relief from rising motoring costs. Unfortunately, at the
end of this three-year registration freeze period, Queensland is still likely to have the highest
registration costs (excluding CTP) in Australia.
More information on transport costs can be found at: http://www.racq.com.au/motoring/cars/car_economy/vehicle_running_costs
More information on RACQ’s advocacy for motorists can be found at: http://www.racq.com.au/motoring/advocacy_for_motorists
For more information, contact:
May 2012
RACQ Public Policy Department (Ph 07 3872 8920)
3
For more information on pre-paying registration, see RACQ’s Queensland Vehicle Registration Payment Card Fact Sheet at
www.racq.com.au
4