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ACT to fix car registration costs on emissions rather than weight in boost for EVs

ACT transport minister Chris Steel and chief minister Andrew Barr.

Daniel Bleakley

Feb 2, 2023

EV News Policy

The ACT Government has announced that it will phase out the weight-based vehicle registration system and will replace it with an emissions-based system beginning in July 2024.

The ACT Government has said the transition will be gradual and initially 96% of all private and passenger vehicles will pay the same or less for registration.

New and used zero-emission vehicles, which are finishing the two-year free registration period from 25 May 2023 will transition to the lowest fee category, while the rest of the light vehicle fleet will transition to the emissions-based system on 1 July 2024.

The ACT government says that transport makes up more than 60% of ACT’s emissions – that is a much higher proportion than other states mainly because ACT sources the equivalent of 100 per cent of its electricity needs from wind and solar.

Private vehicle use makes up 70% of total transport emissions in the ACT.

ACT chief minister and minister for climate action Andrew Barr says the new system will result in lower fees for cleaner cars, including for lower emitting petrol and diesel vehicles.”

ACT energy minister Shane Rattenbury said electric vehicles often pay a higher registration fee because of their heavier weight.

“These changes will ensure that the lowest emission vehicles will pay the lowest registration fees,” he said. “These changes, along with our other policies and changes in the vehicle market, continue our efforts to make electric vehicles a more affordable option for more Canberrans.”

Policy gets nod of approval from the Climate Council

The Climate Council’s head of advocacy, Dr Jennifer Rayner welcomed the policy, saying it will reward.

The ACT claimed first place in our State and Territory Transport Scorecard released late last year, and this new change is an example of why this jurisdiction is worthy of that title.

“Hopefully this increases awareness around just how much transport contributes to our emissions,” she said. “Personal transport is Australia’s fastest growing source of greenhouse gas emissions and our second biggest source of climate pollution.

“The ACT claimed first place in our State and Territory Transport Scorecard released late last year, and this new change is an example of why this jurisdiction is worthy of that title.

Dr Rayner also highlighted the importance of vehicle emission standards.

“If Australians want to lessen the cost of registration going forward, implementing robust fuel efficiency standards, which limit how much pollution a car manufacturer’s new models can release before they hit the market, is a critical policy lever that will enable Australians to access cleaner and cheaper vehicles and ease their future rego bills.” she said.

The ACT has some of the strongest EV policies in Australia

The ACT will ban the sale of new petrol and diesel cars completely by 2035, and is currently the only state or territory in Australia to commit to an end date for new ICE car sales.

The ACT also boasts the fastest electric vehicle uptake in Australia, with EVs making up 9.5% of all new cars purchased in 2022 and EV registrations doubling from 2021 to 2022.

Over four years the overall package of the first stage of the transition including the changes to registration fees, stamp duty and concessions will save motorists $6.6 million.

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