VicRoads shakes up registration, licensing admin

VicRoads, Victoria's vehicle registration authority, has announced increased registration fees to take effect from July 1 next year. The increase takes the standard registration fee (excluding compulsory third party insurance also levied) from $191.60 to $226.60.

Minister for Roads Terry Mulder said in a press release issued last week that Victoria's registration fees remain the third lowest in the country, but as a sweetener, the registration authority will offer, for the first time, the option of paying registration in three-month or six-month periods.

The Victorian Automotive Chamber of Commerce (VACC) supports the change and, indeed, has been lobbying for a quarterly registration payment facility for something like five years. It's the view of the VACC that smaller dealers can now save significant operating costs by renewing the registrations of cars on their lots in quarterly terms, rather than annual.

“This has been a long hard road, but we are pleased motorists will have a choice of how they pay their vehicle registration,” VACC Executive Director, David Purchase, said.

“Initially VACC called for the introduction of a six monthly payment scheme, but quarterly payments, as is suggested, will still benefit motorists because they will be able to spread their payments to suit their needs. In addition, owners of small automotive businesses, in particular, licensed motor car traders, will benefit because they will be able to register a vehicle for a shorter period, thereby reducing costs."

Purchase argued, however, that the increase in registration fee by $35 should not be levied from registered owners and should actually come from "consolidated revenue". Furthermore Purchase was critical of a posted change to vehicle stamp duty from 2.5 per cent to 3.0 per cent. This, combined with the increased registration fee is aimed at paying the cost of implementing a new database system.

From his perspective, Terry Mulder championed the new database on the grounds that the current system is 23 years old, inflexible and prone to fraud, as explained in Ombudsman's reports in 2005 and 2007. The new system will introduce facial recognition technology for driver licensing in 2014 and has been hailed by the minister for its internet-era modernity, Not surprisingly, the minister took the opportunity in the press release to lambaste the previous government for acting slowly and underfunding the replacement system.

“Despite the Ombudsman’s warnings about the security failures and risk of the whole system failing, the previous Labor Government turned a blind eye,” he was quoted as saying in the press release.

“By leaving it in the too-hard basket, the previous Labor Government left VicRoads with an outdated system, long queues of frustrated customers and powerless to prevent fake licences.

“With identity theft costing the Australian economy around $4 billion each year, the new system’s facial recognition technology will prevent duplicate fake licences.

“While funding for this project will come from an increase in registration fees, the new system will save money allowing more to be spent on improving our roads.”

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