Turning the screws on crime
Turning the screws on crime

Revealed: Why rego price hikes are unfair

REGO fees have just been increased by the Palaszczuk Government but the LNP opposition says motorists could save a bucket load of money if the Government changed one thing.

Opposition analysis of budget figures shows vehicle owners could save at least $30 each if future rego and licence rises were calculated at the real inflation rate.

The Government instead uses forecasts from the annual mid-year fiscal and economic review, which led to a 2.25 per cent spike on July 1, well above actual inflation of 1.5 per cent.

The RACQ has blasted the government for linking inflation to a hypothetical rate and called for a rates freeze.

Deputy opposition leader Tim Mander said the Government had promised to keep fee hikes in line with inflation and its "rego rip off had been exposed".

Deputy Opposition Leader Tim Mander says car registration should be linked to real inflation. Picture: Zak Simmonds
Deputy Opposition Leader Tim Mander says car registration should be linked to real inflation. Picture: Zak Simmonds

"It's a $160 million broken promise slugging Queensland motorists," he said.

"Queenslanders have seen five years of rego hikes that will continue as far as the budget projects.

"Thanks to Labor, we are leading the nation in rego costs - a title no one wants to have."

A Palaszczuk Government spokesman said if the former LNP Government's fees and charges policy was still being used, motorists would have just been slugged a 3.5 per cent hit.

"The Palaszczuk Government made a commitment to a fairer system for indexing fees and charges to CPI and that's what we've done," he said.

"Registration fees fund the construction and maintenance of Queensland's state-controlled roads."

RACQ head of public policy Rebecca Michael said it was disappointing drivers were getting slugged with tax hikes on vehicle rego and licence fees that were tied to a hypothetical CPI forecast running higher than actual inflation.

Dr Rebecca Michael from the RACQ blasted the government for linking inflation to a hypothetical rate and called for a rates freeze. (AAP Image/Josh Woning)
Dr Rebecca Michael from the RACQ blasted the government for linking inflation to a hypothetical rate and called for a rates freeze. (AAP Image/Josh Woning)

"From July 1, Queenslanders are $20 worse off than they would've been if increases were capped at the actual CPI rate, and not a hypothetical forecast - this will see registration go up by 2.25 per cent," Dr Michael said.

"The Government should act on its promise to keep fee increases in line with CPI, or better yet, commit to freezing rego for the next three years."