Changes to Victorian car registration fees

Increases to motor vehicle registration and stamp duty will be of interest to any Victorian fleet manager as changes come into force from July 1.

The Victorian Coalition Government announced the fee adjustments earlier this month as part of the 2014-2015 state budget.

Victorian Treasurer Michael O'Brien said the increases are necessary to complete important roading projects across the state.

"The Coalition Government will be delivering major new job-creating infrastructure for Victorians in this budget," he said.

"In particular, motorists and the transport industry know that Victoria needs significant road and transport upgrades after eleven years of Labor neglect."

There will be a $25 fee increase for motor vehicle registrations which will take light vehicle registration fees in Victoria to $270 which is still significantly lower than in New South Wales and Queensland which are well over $330.

When the fee climbs, fleet managers will be buoyed by the fact that it breaks down to less than 50 cents a week. It is important to note that there will still be a 50 per cent discount for fleets that have vehicles used for primary production such as prime mover or a tractor.

Those involved in fleet management will also incur an increase to the stamp duty on the purchase of new or used motor vehicles. This will rise 40 cents per $200 or part thereof.

This is crucial to fleets which have vehicles that are classed as luxury as this rate will increase to 5.2 from 5 per cent. For regular passenger vehicles, the rate is bumped up to 3.2 from 3 per cent. For truck fleets it will rise from 2.5 to 2.7 per cent.

Fleet managers looking to take advantage of the lower rates are suggested to do so before the rise in a couple of months' time.

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