The ACT Government announced the transition from a weight-based vehicle registration system to an emissions-based one and will enhance motor vehicle registration concessions as part of ACT’s commitment to reducing light vehicle emissions.
The State Government said ACT Service Access and Australian Low Income Health Care cardholders will now be eligible for the State Government’s expanded concessions on motor vehicle registration. Eligible cardholders will receive a 100% concession on motor vehicle registration beginning 1 July 2023.
As announced last year, the Government would also gradually upgrade the motor vehicle registration system. The first stage will be to switch from a weight-based to an emissions-based schedule.
After the two-year free registration period for new and used ZEVs ends on 25 May 2023, they will be transitioned to the lowest charge category, with the remainder of the light vehicle fleet transferring from the present weight-based system to an emissions-based one on 1 July 2024.
According to the Government, the current weight-based registration system mandates greater registration fees for heavier vehicles, potentially penalising certain heavier but much lower polluting automobiles.
The transport sector currently makes up over 60% of ACT emissions, with private vehicles accounting for around 70% of transport emissions.
Chief Minister and Minister for Climate Action Andrew Barr said the transport sector is now the single largest source of greenhouse gas emissions in the State.
“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,” Chief Minister Barr stated.
Canberrans will receive cheaper costs for fewer emissions across all motor types under the emissions-based registration plan. From the start of the scheme, the State Government said 96% of all private passenger vehicles would pay the same or less in registration fees.
According to Chief Minister Barr, the new initiatives are intended to ensure that ACT has a suitable automobile registration system in the future. Chief Minister Barr added that they would see decreased fees for low-emission vehicles, including gasoline and diesel automobiles.
“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,” the Chief Minister said.
The scheme also provides a 12-month registration discount for new and used plugin hybrid (PHEV) and hybrid electric vehicles (HEVs) beginning on 1 July 2023.
The Government will also expand the stamp duty exemption for passenger vehicles to include used PHEVs and HEVs (with exhaust emissions of less than 130 grammes of carbon dioxide per kilometre) for transfers beginning on 1 July 2023.
The first stage of the transition package, which includes changes to registration fees, stamp duty, and incentives, will result in $6.6 million in savings for motorists over four years.
“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,” Minister for Energy and Emissions Reduction Shane Rattenbury said.
These reforms, along with other policies and market developments, according to Minister Rattenbury, contribute to ACT’s efforts to make electric vehicles more affordable 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,” Minister Rattenbury stated.
Minister Rattenbury added, “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.”
