VACC calls for semi-annual reg

Most vehicle owners in Victoria have to stump up several hundred dollars in one payment each year to renew registration — and it's about time that changed, says the state's peak industry body.

Vehicles purchased from new will usually incur comprehensive insurance premiums payable at the same time as the registration renewal. And if the household owns two vehicles, the whole budget can be thrown out for most of the year, especially if the renewal dates for the two vehicles are within a few months of each other. The combined cost to the household will almost certainly exceed $1100 per vehicle, but at least the comprehensive insurance premium can be whittled back through monthly payments.

That's not an option available with the registration renewal however, prompting the Victorian Automobile Chamber of Commerce (VACC) to lobby the state government and its registration authority, VicRoads, to review the current system.

“Victoria is the only state in Australia that does not offer a variable payment option to motorists, unless they are Concession card holders. In ACT and South Australia, motorists have a payment option of three months, ” says David Purchase (pictured), Executive Director of the VACC.

“With no expensive infrastructure or technology changes required, VicRoads should be permitted to apply a flexible payment option across the board to all vehicle registrations.

“The cost of a vehicle registration varies depending on where you live, but, as of 1 July 2011, some motorists are typically paying a single vehicle registration fee of $191.60, plus TAC’s Premium traffic accident charge of $409 and an insurance duty of $40.90, totalling $641.50 for an annual renewal. That’s a big hit.

“VACC has worked closely with Government and VicRoads on this issue and we will continue to do so as we push for the immediate introduction of a vehicle registration payment option.”

A report by accounting firm, Pitcher Partners, on behalf of the VACC, has found cost savings for consumers, motor car traders and other interested parties if the government introduced a six-monthly registration renewal scheme.

“Pitcher Partner’s report is comprehensive and concludes the introduction of a six-monthly vehicle registration payment option is a win for all parties, ” says Purchase .

“Here is a golden opportunity for Government to introduce a flexible payment scheme to assist households, and yet, progress has been slow.”

It's not just households that will benefit from the proposed flexible registration renewal scheme. It's been reported that some Victorian motor car traders advertising and selling their stock nationally are frustrated by the need to advertise a 'driveaway' price, in accordance with the ACCC's Clarity in Pricing legislation.

Since vehicle retailers need to advertise the car as registered, under the current regime the advertised price in Victoria includes the full 12-month registration for new cars, or used vehicles close to the expiry of the current registration period. In other states the advertised price can be lower by hundreds of dollars if the registration fee payable as part of the purchase price is for a six-month period only. The Victorian retailers are hamstrung by what they argue is a non-competitive trading environment, in a national context. Far from placing the retailers in conflict with the mandates of the ACCC, a six-monthly renewal option would free them up to trade more aggressively on behalf of the consumer —the ultimate aim of the organisation.

The VACC first announced a month ago that it was presenting a submission concerning this matter to the Victorian Minister for Roads and Public Transport, Terry Mulder. Now the Chamber has gone the extra step, releasing a slickly-produced video that encapsulates all the arguments in favour of six-monthly renewals. It's even suggested in the video that such a scheme would reduce the number of unregistered cars on the roads — cars not covering their drivers and other road users for compulsory third party insurance.

The VACC's video can be viewed here.

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