Is the new NSW rego scheme a win for fleet?

By November 21, 2017 News

Toll road users will soon be eligible for free car registration as part of the NSW Government’s commitment to tackle cost of living pressures.

Premier Gladys Berejiklian yesterday announced drivers will be eligible for free vehicle registration if they spend more than $25 a week, on average, over a 12 month period on tolls.

“The majority of eligible motorists will save $358 a year on registration costs, with potential savings of up to $715 a year,” Ms Berejiklian said.

“The Government’s strong budget position allows us to give back to toll users.

“The NSW Government has made it a priority to drive down the cost of owning a vehicle with big savings being delivered through reforms to CTP Green Slips and the introduction of a FuelCheck app.”

The scheme will apply to private drivers who use any existing toll roads and will also include any future toll roads. Potential savings for eligible motorists will be as follows:

Weight Band Registration Savings For Eligible Motorists (2017)* Example Vehicles

Cars up to 975kg

$272

Hyundai Eon, Citroen C1, Renault Twingo

Cars 976 – 1154kg

$305

Ford Fiesta, Mazda 2, VW Polo, Toyota Yaris

Cars 1155 – 1504kg

$358

Mazda 3, Hyundai i30, Honda Civic, Toyota Corolla, VW Golf

Cars 1505 – 2504kg

$513

Toyota Camry, Toyota Hilux, Hyundai Tucson, Holden Commodore, Mazda CX3, Ford Ranger

Cars 2505 – 2794kg

$715

Toyota Land Cruiser, Nissan Patrol

Motorcycles

$127

All registered motorcycles

But the scheme has already been criticised by rural drivers who are likely to travel more kilometres than city drivers yet receive no discount.

Minister for Western Sydney and WestConnex Stuart Ayres said the scheme will be backdated, so eligible motorists will enjoy free vehicle registration if they spend more than $25 a week from July 1, 2017.

“We want NSW road users to start enjoying the savings as soon as possible, so when the scheme kicks in we will include historic toll payments,” Mr Ayres said.

“This delivers a fair go for drivers who are paying their way on the toll road network which allows them to spend less time in their cars and more time at home.”

Current Sydney tolls for Class A vehicles (ie – sedan, people mover, SUV):
Motorway Toll method Cost
M2 Both directions, fixed Maximum $7.10
M4 Both directions, distance $1.22 flagfall, then 45 cents/km capped at $4.56
M5 south-west Both directions, fixed $4.62
M7 Both directions, distance 39 cents/km, capped at $7.94
Eastern Distributor Northbound, fixed $7.16
Cross City Tunnel Both directions, fixed Maximum $5.59
Lane Cove Tunnel Both directions, fixed $3.25
Harbour Bridge and Tunnel Southbound, time of day Maximum $4

Bear in mind the cost of $25 per week by 52 weeks equals $1300 – substantially more than a standard rego. Drivers that rarely/never use toll roads would on average end up paying a lot more by trying to alter their driving habits to become eligable for the discount.

 

NOTE: An earlier version of this article indicated that savings may be applicable to fleet vehicles. This is yet to be confirmed and AfMA is currently lobbying the NSW government to better understand the effects this plan will have on fleet managers within their organisations.