The ACT government has announced a significant increase in car registration and licensing fees, a move that has been met with widespread criticism from families and motoring groups. Chief Minister Andrew Barr defended the hike as necessary for infrastructure funding, but opponents argue it places an unfair burden on households already struggling with rising living costs.
New Tax Details and Impact on Households
Under the new scheme, the average Canberra family will pay an additional $400 to $500 per year for vehicle registration. The increase, effective from July 2025, is part of a broader revenue-raising strategy to fund public transport and road upgrades. According to the ACT government, the changes will affect approximately 300,000 registered vehicles in the territory.
Community and Political Backlash
Opposition Leader Elizabeth Lee condemned the tax, stating, "This is yet another hit on Canberra families who are already feeling the pinch from rising interest rates and grocery prices. Andrew Barr is completely out of touch with the financial pressures facing ordinary people." The Canberra Liberals have vowed to reverse the increase if elected.
Government Justification
Andrew Barr argued the tax is necessary to maintain essential services. "We are investing in a modern, sustainable transport network. This modest increase ensures we can continue to deliver for Canberrans," he said. However, critics point out that the tax disproportionately affects low-income families and those who rely on cars for work.
Comparison with Other States
ACT motorists already pay some of the highest registration fees in the country. This new hike will widen the gap, with Canberra's fees now approximately 20% above the national average. The NRMA warned that such increases could force families to reconsider car ownership, potentially impacting employment and access to services.
Next Steps and Advocacy
The government has announced a six-month transition period to allow families to adjust. However, advocacy groups are calling for a review of the tax's impact on vulnerable households. A petition launched by the Canberra Drivers Association has already gathered over 10,000 signatures, demanding the government reconsider the hike.
