Car rego blues

Felix the Cat 8 January 2012 54

So I received my car rego renewel in the mail the other day. Great, another bill, just what I need at this time of year. Being Christmas and having a few other bills needing paying around this time I find myself to be somewhat unfinancial so I decide to only purchase 6 months rego instead of 12 months and hopefully in 6 months time when it’s time to renew again I will be able to afford full freight.

Anyhow, I logged onto rego ACT website and duly paid the rego (quite a painless exercise apart from parting with the money!) but noticed they slug me an extra $25 for the priviledge of paying only for only 6 months rego. The full 12 month price for my small 4 cyl car is $796.50 (CTPI $526.60 + rego $269.90), the 6 month fee is supposed to be half this plus $25 (so $423.25) but they actually charged me $429.30 (NFI what the extra $6.05 is for – a “just because” fee I suspect).

It’s no wonder there are so many unregistered vehicles running around when people are penalised and charged extra fees just because they can’t afford to pay the full 12 months. The amount payable for 6 month rego should be exactly half, not half plus $25 plus $6.05. Adding all these fees for no reason – there is no reason, it doesn’t cost ACT govt any more to process 6 months rego than it does 12 months (except maybe an envelope and postage costs) – so why penalise people for it? Going off the govt logic why don’t they have 2 or even 3 years rego and make it even cheaper, or just go the whole hog and introduce lifetime rego and only charge $10?

You can understand to an extent that say food and drink costs comparitively more when buying in smaller quantities (eg a 375 can of Coke can cost nearly the same as 1.25lt bottle but that is Coke and the supermarkets profiteering…I digress…) but govt services shouldn’t IMO.


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54 Responses to Car rego blues
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addicus addicus 3:10 pm 16 Jan 12

Thanks Felix the cat, ah yeah tin foil hat….like to stop aliens getting into your brain, ok yeah I guess my comments where probably closer to fiction in some people’s opinions.

bigred bigred 10:29 am 12 Jan 12

Made a mistake recently and rather than paying my motorbike rego I paid my trailer rego a second time. The rego systems will not credit additional money and extend the rego period, but they hold the funds in a customer account. Since this discovery I have been thinking about setting up a weekly internet banking transfer to my customer account with the rego folk to cover regos as they come due. Their system is programmed to mail a receipt each time so I can keep track of where I am a. Where is the flaw in this?

Felix the Cat Felix the Cat 10:02 am 12 Jan 12

The Antichrist said :

It is you who has not only missed the ‘true’ point but the entire postcode, with some obscure and random rant about reasons we should all be wearing tin-foil hats.

No, addicus did get it, sort of…but yes, his/her post was a bit tin-foil hatish!

The Antichrist The Antichrist 8:17 pm 11 Jan 12

addicus said :

Ignore the ”budget better” comments by the financially perfect while they stand on their soapbox, as they are missing the true point of your issue perhaps

Perhaps ? Perhaps not. The OP had a whinge about copping unexpected bills on top of a known registration renewal date and associated invoice – and justified this whinge with some feeble notion that a $25 admin fee for less than the full standard period of registration, was somehow wrong.

It’s not wrong, there are many reasons that the minimal admin fee exists, while the advice to spend more time sorting out a budget is both accurate and in context.

It is you who has not only missed the ‘true’ point but the entire postcode, with some obscure and random rant about reasons we should all be wearing tin-foil hats.

frontrow frontrow 4:28 pm 11 Jan 12

They used to only accept 12 months at a time. If you pay 6 months at a time the government foregoes interest on half the money for six months. Similarly, if you pay every three months it foregoes interest on even more of it.

Most of the $25 charge is to compensate for this. The actual processing of payments only accounts for a small part.

If you treat it purely as interest, the six month fee is more than using a bank credit card but less than a usurous finance company card. The three month fees are quite a bit harsher.

addicus addicus 12:56 pm 11 Jan 12

Ignore the ”budget better” comments by the financially perfect while they stand on their soapbox, as they are missing the true point of your issue perhaps. If you are not happy about something, speak your mind. The idea that this fee is excessive shouldn’t be dismissed. Find out what it is for, and ask if it is avoidable. I’m sure alot would agree that we are all charged extra fees that probably shouldn’t’t exist with some things. The government has to answer for their operations and business practices, why is it not a better system for something we all HAVE to do if you want to drive a car. Basically our privatised world has has by the wallet, and predict how things develop over time regarding rules and fees. The government is happy for countries ownership and decisions to go to the corporate suits, at a profit…….and as long as their fat retirements are safe. We are told it’s infrastructure we needed, or a service we required, yet never had the motivation to develop the idea or deliver implementation with the interests of the general public in mind overall. The private company’s motivation is financial profit from people through a government initiative. The government’s also needs money, yet doesn’t need to supply the service, see where that leads to……poor service and the public gets charged excessive amounts for the poor service, while the government gets the money they need. Are we not currently in a world wide financial crisis? Of course we are being quietly ripped off people !! We need to support a system that the people who helped shape it know is not sustainable, especially if we change our attitudes towards these things.

Henry82 Henry82 9:57 pm 10 Jan 12

screaming banshee said :

Its pretty hard to tamper with your fuel usage, its like a green levy and a user pays registration rolled into one. Would certainly up the benefits of driving a low or no emission vehicle.

but the fees are for personal injury insurance, and road wear? Someone in a large 4wd gas guzzler is probably going to be better off in an accident compared to a little 3 door getz. So in a way, they’re paying more, but they’re less likely to be injured.

As for damage to the road, sure i understand that a nice eco friendly car would be better off, but say a 90s ford laser with the same wheelbase and weight would use much more petrol but still cause the same amount of “road wear”

The Antichrist The Antichrist 8:18 pm 10 Jan 12

Felix the Cat said :

as soon as their circumstances change they could just go into MVR or Shopfront and notify them or perhaps it could even be done over the phone and then the payments would stop or transfer over to the new vehicle they have bought

Just go into a shopfront……..make a phone call………..change administrative arrangements……..tie up a person on the phone or at a counter. Then do it all again when you sell that car and buy another.

All this costs time. Your time and the shopfront employees time.

Time = money. Money = the $25 admin fee on your short periods of rego.

The penny has dropped. At least about administrative costs. 🙂

KB1971 KB1971 9:56 am 10 Jan 12

Mang said :

I’ve got it, lets just make cyclists pay rego/road tax!

Lower car rego as compensation for having to share the road with frustrating cyclists.

EVERYBODY WINS!

But I do already?

screaming banshee screaming banshee 8:45 am 10 Jan 12

Henry82 said :

Not sure how the user pays system would work, i can imagine a large number of tampered odometers.

Its pretty hard to tamper with your fuel usage, its like a green levy and a user pays registration rolled into one. Would certainly up the benefits of driving a low or no emission vehicle.

Mang Mang 7:41 am 10 Jan 12

I’ve got it, lets just make cyclists pay rego/road tax!

Lower car rego as compensation for having to share the road with frustrating cyclists.

EVERYBODY WINS!

Felix the Cat Felix the Cat 5:56 am 10 Jan 12

The Antichrist said :

AG Canberra said :

Rego/CTP is just about the only ACT Gov charge that can not be paid fortnightly/monthly. As soon as one of the parties in our toy assembly propose this I will vote for them.

Rego is the only payment that can’t be arranged via regular direct debit. Why?

You’ll be waiting a long time mate – it will never happen.

Why ? Rego is not something like an electricity bill or a gas bill. Cars get bought and sold and crashed all the time. Owners move interstate, cars move interstate…..there are far too many variations for something with such low intrinsic value as a car – vs the steady and ongoing nature of household bills for household utilities.

The assumption that every motorist will continue to own the same vehicle for 12 months cannot be sustained as it would need to be, in order to support a fortnightly deduction for rego for every car owner. Cheap shitheaps get bought and sold every day of the week…..trying to work out fortnightly payment balances and refunds etc etc would be an administrative nightmatre and probably add $100pa to the cost of rego !!

Oh of course unless you support the OP’s belief that admin fees are nothing more than government profiteering and it costs nothing to register your vehicle……

I’m not sure it would be as much of an administrative nightmare as you make out. People buy and sell cars and move interstate now and they have the option of 3 month rego, so with a weekly of fortnightly payment as soon as their circumstances change they could just go into MVR or Shopfront and notify them or perhaps it could even be done over the phone and then the payments would stop or transfer over to the new vehicle they have bought. People buy and sell houses all the time and the govt seems to cope with fortnightly (or is it monthly?) electricity and water/sewerage deductions.

Henry82 Henry82 10:08 pm 09 Jan 12

Not sure how the user pays system would work, i can imagine a large number of tampered odometers.

screaming banshee screaming banshee 8:53 pm 09 Jan 12

Felix the Cat said :

Having a user pays system would be much fairer based on the kms you travel, perhaps they could add say 20c per litre to the price of petrol to cover it

Now that is something I would like to see…user pays. So the vehicles that create more wear and tear and demand space on our roads pay more. Then I could own a ute and a convertible and a 4wd and a little electric thingy and only pay for the amount I use them rather then a lumping great sum of money each year for the occasional use.

I once suggested that to a courier driver who responded “f. that I drive a hundred thousand k’s every year.” Correct…so you should pay more than me.

Frustrated Frustrated 8:39 pm 09 Jan 12

smeeagain said :

I’m not sure who commented about NRMA being the only CTP provider, but the paragraph below, indicates that you are able to shop around…

http://www.rego.act.gov.au/registrations/regotransferr.htm

At the time of paying the registration fee the Compulsory Third Party Insurance (CTPI) component is also collected. A new CTPI provider cannot be selected upon transfer of registration. A new CTPI provider can be selected upon the next renewal of registration.

First of all, you posted a link to transferring registration when taking ownership of a vehicle.

Secondly, it is a well known fact, that there is only one option in the ACT for CPI and that is the NRMA/IAG Group.

Feel free to contact Canberra Connect or ACT Motor registry if you want to prove me wrong.

The ACT Govt offered other insurance companies the option to offer CPI with ACT rego, but only the NRMA/IAG took up the offer to this point in time.

Other Insurers dont see the value for their shareholders in offering CPI in the ACT due to our small population I assume

The Antichrist The Antichrist 8:16 pm 09 Jan 12

AG Canberra said :

Rego/CTP is just about the only ACT Gov charge that can not be paid fortnightly/monthly. As soon as one of the parties in our toy assembly propose this I will vote for them.

Rego is the only payment that can’t be arranged via regular direct debit. Why?

You’ll be waiting a long time mate – it will never happen.

Why ? Rego is not something like an electricity bill or a gas bill. Cars get bought and sold and crashed all the time. Owners move interstate, cars move interstate…..there are far too many variations for something with such low intrinsic value as a car – vs the steady and ongoing nature of household bills for household utilities.

The assumption that every motorist will continue to own the same vehicle for 12 months cannot be sustained as it would need to be, in order to support a fortnightly deduction for rego for every car owner. Cheap shitheaps get bought and sold every day of the week…..trying to work out fortnightly payment balances and refunds etc etc would be an administrative nightmatre and probably add $100pa to the cost of rego !! Oh of course unless you support the OP’s belief that admin fees are nothing more than government profiteering and it costs nothing to register your vehicle……

NoImRight NoImRight 4:52 pm 09 Jan 12

The costs for different periods are on your rego papers so its no surprise. A little late when paying to carry on.

I do like the fact the OP is critical of others based on their ignorance of his position but then goes on to state processing his application “costs nothing” and exhorting the use of a user pays system that is totally unworkable and a complete nonsense. Irony can be pretty ironic.

Ian Ian 4:40 pm 09 Jan 12

Felix the Cat said :

As far as the staff of the Motor Registry having to process rego payments quarterly or half yearly they are getting paid to work regardless so there is no extra cost there. They don’t get paid to only process say 10,000 rego renewals per year.[/quote>

Not strictly correct. While true of the individual staff members, the number of transactions processed would play a part in determining how many people they need to employ. The more transactions, the more staff needed, the more cost. Although I doubt its anything like $25 additional cost … the surcharge on the CTP looks more like what it should be.

There is no actual cost for car rego, so it’s all profit for the govt (as has been discussed numerous times on this forum previously car rego just goes into the big pot of govt money called consolidated revenue, it doesn’t actually go specifically towards roads or any other transport infastructure)

The rego part of it is merely a tax. If it wasn’t collected via rego the government would just slug people some other way.

smeeagain smeeagain 4:21 pm 09 Jan 12

I’m not sure who commented about NRMA being the only CTP provider, but the paragraph below, indicates that you are able to shop around…

http://www.rego.act.gov.au/registrations/regotransferr.htm

At the time of paying the registration fee the Compulsory Third Party Insurance (CTPI) component is also collected. A new CTPI provider cannot be selected upon transfer of registration. A new CTPI provider can be selected upon the next renewal of registration.

Erg0 Erg0 4:16 pm 09 Jan 12

It’s going to take a while for the vehicle registration system to catch up with advances in enforcement (namely RAPID), but I expect that we’ll be going the stickerless route before long. Once the stickers are gone, the flexibility for fortnightly payments, etc will be much greater. Whether that flexibility leads to actual changes is another matter, of course.

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