The State Government has announced a $750 million cost-of-living initiative, offering Victorian motorists a 20 per cent rebate on their vehicle registration to help ease the financial burden of rising fuel prices.
The measure, part of the Victorian Budget 2026/27, aims to put money back into the pockets of families as the ongoing conflict in the Middle East continues to drive up prices at the pump.
Under the plan, light vehicle registration, which currently costs up to $930.70 annually, will be discounted by 20 per cent.
This means an individual driver with one car will receive a rebate of up to $186, while a family with two vehicles could see savings of up to $372.
The rebate is available for light vehicles used for personal use, such as cars and utes under 4.5 tonnes. Individuals can claim the rebate for up to two vehicles registered in their name.
Eligible vehicle owners will be able to apply for the 20 per cent refund through Service Victoria starting from June 1.
The application window will remain open for two months, closing on July 31.
The rebate serves as a refund on registration payments made for the 2025/26 period.
The government stated that the $750 million in foregone revenue is a manageable one-off expense that can be accommodated while still delivering a budget surplus.
Premier Jacinta Allan emphasised the government’s commitment to providing immediate relief for struggling households.
“As Premier, I’m determined to use government to help Victorians who are under pressure,” Premier Allan said.
“Like cheaper PT, this won’t fix everything, but it’s immediate action I can take to make a difference. We can afford it because it’s one-off cost-of-living help right now, while we are delivering a surplus.”
Minister for Government Services Ingrid Stitt highlighted the ease of the application process.
“Every saving counts, and you’ll get simple access to your rebate through Service Victoria,” she said.
Minister for Roads and Road Safety Ros Spence noted the impact on the daily lives of motorists.
“This will put money back in the pockets of Victorians facing ongoing cost-of-living pressures,” she said.
Minister for Cost of Living Paul Edbrooke said the measure was part of a broader strategy to make the state more affordable.
“We’re slashing fees and fares because we’re serious about addressing the cost of living,” he said.
This latest move for motorists follows previous Labor Government initiatives to lower transport costs, including the introduction of free and half-price public transport fares across the state.
