Victoria offers 20% car rego discount in cost-of-living measure

In a significant move aimed at alleviating financial strain on households, the Victorian government has announced a 20% rebate on car registration fees. This initiative, set to provide tangible relief to motorists, underscores the government's commitment to addressing the rising cost of living. Premier Jacinta Allan highlighted that while this measure may not solve all financial challenges, it represents a crucial step in offering immediate support to working families.

The rebate, applicable to eligible vehicle owners for the 2025/26 registration period, will see drivers receive up to $186 back per vehicle, with a limit of two cars per name. This program is projected to cost the state budget around $750 million in foregone revenue. However, the government asserts its capacity to afford this one-off measure, particularly as it aligns with the state's current budget surplus and broader economic strategy.

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I do want to acknowledge that this won't solve every problem but it is another step we can take.

This car registration discount is part of a wider suite of cost-of-living relief measures. It follows closely on the heels of substantial public transport subsidies, including free travel until the end of May and half-price fares for the remainder of the year. The government explicitly linked these measures, including the registration rebate, to the inflationary pressures exacerbated by global events, such as the conflict in the Middle East impacting fuel prices. This coordinated approach demonstrates a strategic effort to cushion the economic blow for Victorians.

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We can afford it because it's one-off cost-of-living help right now, while we are delivering a surplus.