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Rego payment scrapped under Democrat plan



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Senator John Coulter Australian Democrats Leader

9 July 1992

NEWS R E L E A S E

Rego payment scrapped under Democrat plan

The abolition of lump sum car registration payments is proposed in a Democrat business and industry statement released today.

The Democrats pay-as-you-go registration system would benefit women, young and old drivers who as a group drive small, fuel efficient cars and less than the national average of 18,000 kms a year.

Anyone who drives 18,000 kms a year would be $35 a year better off under the Democrat plan.

The revenue neutral scheme, which dumps lump sum registration payments, would see petrol prices rise by 16.5 cents a litre but budgeting for large registration payments would be a thing of the past.

The user-pays scheme would probably mean men in the 30 to 50 year-old bracket, who as a group tend to drive gas guzzlers and large distances, stand to pay more than under the existing standing fee system.

The Democrat initiative scrapping the lump sum payments would ease the household budgeting burden of the large annual registration payment.

The scheme will not effect vehicles run on diesel because of the complexity of registration and licensing fees for diesel vehicles. Diesel-fuelled cars would continue to pay fixed registration and third party insurance fees. Initially the scheme would not apply to gas-powered cars but long term the scheme could be expected to include these vehicles.

The $2.9 billion raised would be divided amongst the states and territories. NSW drivers wishing to remain in private third party insurance would be rebated to avoid double taxation.

The Democrats have proposed a social study to determine the scheme's impact on rural and regional dwellers, and would favour fuel excise rebates for those adversely affected.

Contact Jenni Mack: 06 277 3646 a/h 06 295 7069 or 018 630 136/7

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