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Car registration rates soar in Victoria

Victorians will have to pay $744 per year from next year in order to register their cars following changes introduced by the Napthine government. Nine News.

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Victorian motorists will pay an extra $25 for car registration and people buying a new or used car will pay more stamp duty as the Napthine government ups taxes to pay for infrastructure in May’s budget.

Treasurer Michael O’Brien on Thursday said the increase in registration and motor vehicle stamp duty was caused by Victoria being “ripped off" when its share of GST revenue dropped to 88¢ in the dollar, down from 90¢.

“If we hadn’t had the bad news on GST with Victoria’s share being ripped away, these measures wouldn’t be necessary,’’ Mr O’Brien said.

From July 1, the base rate for light vehicles will rise by $25, plus 2.25 per cent for inflation, to $270. The changes come into effect on July 1.

A light vehicle is a car or truck that weighs 4.5 tonnes or less.

The government says the $270 registration renewal is still lower than that of NSW or Queensland.

The car registration increase will take the cost of an annual renewal for a standard car to $744.50, when TAC payment and taxes are included. 

It is the second time that the Coalition has increased car registration since winning office in 2010.

The base rate of car registration jumped $35 in April 2012, and taxes on new passenger car purchases increased from 2.5 per cent to 3.0 per cent in July 2012.

Mr O’Brien said the two budget measures would raise $136.8 million in 2014-15 and help fund new road infrastructure that would be detailed in the budget.

Motor vehicle stamp duty will rise from 3 per cent to 3.2 per cent, meaning taxes on a $10,000 used car would rise by $20, while taxes on a $34,000 new car would rise by $68.

The car stamp duty increase will raise $37.5 million, with car registration increases contributing $99.3 million.

In what could be some good news for voters, the Treasurer said the pain consumers feel in the budget should be limited.

“In terms of things that will affect the hip-pockets of Victorians, this is pretty much what it is limited too,’’ Mr O’Brien said.

“There won’t be additional revenue measures ... Victorians can be assured that we are managing this budget carefully and closely.’’

He said the government was finding other ways to fill revenue gaps.

The government announced last December that it wanted to increase the levy that Crown Casino pays on its poker machines from April 1 but that is yet to come into affect.

Mr O’Brien said negotiations with Crown were continuing but would not be drawn on whether a deal would be struck by the May 6 budget.

The Treasurer blamed the former Labor government for making an agreement with the casino that it could not impose new taxes and levies without negotiation.

Opposition Daniel Andrews said it was clear that Victorians were being forced to pay more for less services.

“Taxes and charges are up, our roads are more congested, public transport is no better, our hospitals are clogged, the list goes on and on,’’ Mr Andrews said.