Queenslanders will soon have to pay more for a range of state government fees. The government has responded with a modest 3.4% increase, to be implemented in the next financial year. This increase applies to frozen-in-time fees. The effect will be felt across the board, from services like vehicle registration to renewals of driver licenses.
It will cost around $372.85 to register a four-cylinder vehicle. At the same time, the registration fee for five- or six-cylinder vehicles will skyrocket to nearly $590.35. Notably, this hike already exceeds Brisbane’s latest Consumer Price Index (CPI) of 2.7%. The new fees will apply to most state government products and creations. This important change reflects the federal government’s commitment to ensuring a robust revenue stream as our economy continues to change.
Background on Fee Adjustments
The Queensland government on 5 September 2023 announced a freeze on all state government charges for the 2024-25 financial year. This incorporates the cost of registering a vehicle. That decision has since been rescinded. As Treasurer David Janetzki highlighted last week, there’s a fine balance between being respectful of taxpayer’s money, while getting the necessary investments in critical services.
In September, the state implemented a 20% vehicle registration rebate. This wonderful development brought the registration fee for an average four-cylinder vehicle down to a mere $288.45! This subsidy will continue to be available to drivers until it ends on September 16 of this year. If you’ve missed out on this great savings opportunity, fear not! The federal government promises that you can continue to enjoy the advantages of it up until the deadline — September 30, 2023.
Impact on Driver Licences
Besides vehicle registration fees, the hike will apply to new or renewed driver licences. For a driver licence valid for five years, the cost will rise from $198.35 to about $205.10 as of July 1. This increase is in line with the administration’s new plan to recalibrate state fees across the board after the freeze.
Janetzki stated that the government is committed to increasing fees by 3.4% each year during its initial term in office. The new systematic approach of creating predictable revenue streams and planning to meet the needs of all Queensland residents is positive.
Future Financial Projections
The state government has forecast for it to bring in just over $2.081 billion in revenue this fiscal year. This estimate takes into consideration the permanent 20% discount on vehicle registration which is now in effect. In the lead up to next month’s budget Treasurer Janetzki has an opportunity here. This announcement will be a test of how fee increases will contribute to building a more sustainable financial future for Queensland.
