As part of our commitment to reduce light vehicle emissions, the ACT Government will gradually transition from the current weight-based vehicle registration system to an emissions-based system and will expand motor vehicle registration concessions.
The Government will expand concessions for motor vehicle registration to include ACT Service Access card holders and Australian Low Income Health Care card holders. Eligible card holders will receive a 100 per cent concession on motor vehicle registration from 1 July 2023 onwards.
As announced last year, the Government will also gradually update the motor vehicle registration system. The first stage being to replace the existing weight-based schedule to emissions-based.
For new and used ZEVs vehicles finishing the two-year free registration from 25 May 2023, they will transition to the lowest fee category, with the remainder of the light vehicle fleet transitioning from the current weight‐based system to an emissions‐based system on 1 July 2024.
The existing weight-based registration scheme imposes higher registration fees for heavier vehicles, which can penalise some heavier, but significantly lower emitting vehicles.
Transport currently makes up more than 60% of ACT emissions, with private vehicle use accounting for about 70% of transport emissions.
Under the emissions-based registration scheme, Canberrans will be able to access lower fees for lower emissions across any motor type. From the commencement of the scheme, 96 per cent of all private passenger vehicles will pay the same or less registration.
This initiative also includes 12‐months of registration discounts for new and used plug‐in hybrid (PHEVs) and hybrid electric vehicles (HEVs) commencing from 1 July 2023.
The Government will also extend the stamp duty waiver for passenger vehicles to also include second‐hand PHEVs and HEVs (with tailpipe emissions less than 130 grams of carbon dioxide per kilometre), for transfers of such vehicles from 1 July 2023.
Over four years the overall package of the first stage of the transition including the changes to registration fees, stamp duty and concessions will save motorists $6.6 million.
Quotes attributable to Chief Minister and Minister for Climate Action, Andrew Barr:
The changes are designed to minimise cost-of-living pressures – with 96 per cent of all vehicles paying the same or less as part of the transition when the Government ends the current two-year free registration for Zero Emissions Vehicles.
Transport is now the single largest contributor to the ACT’s greenhouse gas emissions.
These new initiatives are designed to ensure we have an appropriate vehicle registration system for the future. They will see lower fees for lower-emission vehicles, including for lower emitting petrol and diesel vehicles.
Existing concession card holders currently receiving a concession on their registration will continue to do so. We are also expanding the current concessions for motor vehicle registration to more vulnerable groups in the community.
Quotes attributable to Minister for Energy and Emissions Reduction, Shane Rattenbury:
As we transition away from free registration for electric vehicles, we need to make sure our registration system is reflecting the environmental benefits of electric vehicles through lower annual registration fees.
Under existing arrangements, electric vehicles often pay a higher registration fee because of their heavier weight. These changes will ensure that the lowest emission vehicles will pay the lowest registration fees.
These changes, along with our other policies and changes in the vehicle market, continue our efforts to make electric vehicles a more affordable option for more Canberrans.
Zero emissions vehicles continue to gain momentum in the ACT, with registrations doubling from 2021 to 2022. The ACT is already leading the nation on electric vehicle uptake, with 9.5% of all new cars purchased in the ACT in 2022 being electric vehicles.
The initiative supports emissions’ reductions by encouraging a switch to lower emission vehicles, an important step towards our goal of a zero emissions fleet by 2035.
