In a move to further ease cost-of-living pressures exacerbated by the ongoing conflict in the Middle East, Victorian Premier Jacinta Allan announced over the weekend a 20 per cent rebate on car registrations. Millions of residents are set to benefit from this one-off payment, but how will it actually work? 7NEWS.com.au has broken down exactly what the rebate entails and how much you can save.
How It Works
From Monday, June 1, eligible car owners can apply for a 20 per cent rebate on their registration payment for the 2025/26 period. Motorists have a two-month window to submit their application, with the scheme closing on July 31. Anyone who has renewed their registration for the 2025/26 year is eligible for the rebate. However, it is important to note that you cannot claim a rebate for registrations renewed after June 1; only the previous year’s registration is covered.
Victorians can claim the rebate on a maximum of two vehicles registered under their name. The vehicles must be for personal use and weigh under 4.5 tonnes. Eligible vehicles include cars, wagons (4WD), station wagons, motorcycles, utes, vans, and light trucks.
How Much Can You Save?
Currently, it costs up to $930.70 per year to register a light motor vehicle (such as a car, 4WD, or SUV). With the 20 per cent rebate, a driver with one car will receive up to $186 back in their pocket, while a family with two cars will get up to $372. For those driving a van, ute, or light truck that runs on petrol, diesel, or LPG, weighs less than 4.5 tonnes, and has a carry capacity of two tonnes or less, the rebate can amount to up to $186.36 on a yearly registration that typically costs up to $931.80.
Motorcyclists are also eligible. To register a motorbike with an engine capacity between 126cc and 500cc that uses petrol, diesel, or LPG for a year, it costs up to $585.66. With the rebate, riders will be able to claim back up to $117.13. The rebate is part of a broader effort to help Victorians cope with increasing cost-of-living pressures, including higher fuel prices at the pump due to the war in the Middle East.
How to Claim
Victorians will be able to apply for the rebate via the Service Victoria app or website. More information will be made available closer to June 1. The rebate means the state government will lose about $750 million in foregone revenue. This is the latest cost-of-living measure introduced by Premier Jacinta Allan ahead of the November state election. Allan recently extended free public transport for all Victorians for another month until June 1, after which half-price fares will kick in until the end of the year.
Allan said the car registration rebate won’t fix everything but is an immediate action the government can take to help struggling Victorians. “As premier, I’m determined to use government to help Victorians who are under pressure,” she said. “We can afford it because it’s a one-off cost-of-living help right now, while we are delivering a surplus.”
