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In late 2017 the Victorian government enacted legislation to allow motorists to pay their car registration in three monthly instalments.

The 28 day grace period to pay registration – previously only available to six and twelve month registrations - has also been extended to apply to quarterly payments.

These changes are particularly welcome to people who find themselves in a difficult financial situation, however they remain relatively unknown.

An overview of the new changes

With the introduction of the Transport Legislation Amendment (Road Safety, Rail and Other Matters) Act 2017, three and six month payment options became available from 1 January 2018 for cars, utes, vans and motorcycles, and can be taken up by anyone, regardless of their income.

Under the new arrangements an average three month registration will be $200.20, and an average six month registration will cost $400.40, compared to an average annual fee of $800.80

Taking up the three month registration option allows people to pay smaller, more manageable amounts at a time and spread the cost of registration renewal across the year.

We know from our experience with transport accident claims that for some clients, the annual $800 car registration fee wreaks havoc with their family budget. Many people just don’t have that amount of money sitting around, and the arrival of the yearly registration bill can be a real stressor for our clients and their families.

It is important that Victorian drivers understand that even if they are late with their three monthly or six monthly payment, as long as they make that payment within 28 days of the due date, they will be covered for all the relevant TAC benefits, such as income benefits, if they are involved in an accident during that time.

What exactly does your registration pay for?

Whether you pay your registration quarterly or annually, the yearly cost increases can sting. Where exactly is this money going though?

There are two key areas that your registration payments contribute to:

  1. VicRoads: Road works, maintenance and projects, as well as traffic management
  2. Transport Accident Commission: Road safety education to prevent road accidents, and medical benefits and support for those who have been injured on our roads.

What does it mean for you?

If your registration renewal is coming up, and you want to switch to three or six monthly payments, head to the Vic Roads website, or contact Vic Roads directly to make the change.

If you are entitled to a concession or discount for example a pensioner or Health Care Card concession or Apprentice discount, you will still be eligible for a discount on your registration.

Remember, if you have recently been involved in a car or transport accident and are concerned about being behind on your registration payments, don’t hesitate - make your payment ASAP and within the 28 day grace period to ensure all your TAC benefits and entitlements are available to you.

The contents of this blog post are considered accurate as at the date of publication. However the applicable laws may be subject to change, thereby affecting the accuracy of the article. The information contained in this blog post is of a general nature only and is not specific to anyone’s personal circumstances. Please seek legal advice before acting on any of the information contained in this post.

Thank you for your feedback.

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