How much does it cost to register and run a car in Australia?

How much does running a car cost in Australia?

On average, drivers in Australian capital cities could spend $1670.24 a year (or $32.12 a week) on car registration, compulsory third party (CTP) insurance, and driver’s license costs. In regional areas, the average cost could be $1602.64 a year (or $30.82 a week). ¹

In the March quarter of 2024, the national average transport cost (excluding public transport) was $432.49 per week. That includes items such as:

• Registration, CTP and licensing
• car servicing and tyres
• insurance and roadside assist
• tolls
• fuel, and
• car loan payments².

How are car registration costs calculated in each state?

The way your registration costs are calculated will depend on the state or territory in which you live. The factors considered include things like vehicle weight, the number of cylinders and the engine size.

Some states include CTP Insurance in the registration fees. In others, you must buy it separately in order to legally drive your vehicle.

Queensland

In Queensland, your vehicle registration fee has three parts to it:

• The registration fee.
• The traffic improvement fee.
• A CTP insurance premium.

A vehicle levy is applied to the fees. The levy changes based on a car's number of cylinders.

When you first register your car, the CTP is included in your registration fee and is valid for the same period. Suncorp Insurance is one of the state’s licensed CTP insurers.

Head to the Queensland Government website to get a full list of registration costs.

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New South Wales

To register a car in New South Wales, you’ll need to pay a flat registration fee, some additional charges and a vehicle tax based on the type of vehicle you’re registering.

The vehicle tax is based on weight and considers whether you’re registering a light vehicle up to 2.5 tonnes, a caravan, or a trailer. Motorcycles, on the other hand, just have a flat rate.

Before registering your vehicle, you must pay for a Green Slip, a common name for CTP Insurance in NSW. You’ll need to obtain a safety check report, known as Pink Slip, depending on your car’s age.

You can learn more on the Transport for NSW registration costs web page.

ACT

In the Australian Capital Territory, vehicle registration includes government fees, registration fees, and Motor Accident Injuries (MAI) Insurance — a scheme similar to CTP insurance.

The components that go into these fees are:

• Road rescue fee
• Road safety contribution
• Lifetime care and support levy
• Motor accident levy, and
• Registration fee is based on vehicle type, tare weight, and usage.

A lot goes into the vehicle registration fees; each element can vary in overall cost.

To learn more, head to the Access Canberra website.

Victoria

In Victoria, vehicle registration and CTP are bundled together and administered by VicRoads. These fees will vary based on where you usually keep your vehicle. There are three different zones:

• Metropolitan (high-risk zone)
• Outer Metropolitan (medium risk zone)
• Rural (low-risk zone)

The registration fee also depends on what type of vehicle you’re registering. For example, sedans, station wagons, 4WDs and utes are grouped together. Goods-carrying vehicles up to two tonnes are considered a separate group.

To learn more, visit the VicRoads vehicle fees page.

Tasmania

Tasmania does things similarly to Queensland. There, they base the cost of the registration  on the number of cylinders in the vehicle and the applicable Motor Tax.

Tasmania’s version of CTP insurance is known as Motor Accident Insurance Board (MAIB) Premiums. These premiums vary depending on the vehicle type.

To read more about Tasmania’s car registration costs, visit the state government website.

Northern Territory

In the Northern Territory, car registration costs include:

• a registration fee
• CTP Insurance, known as Motor Accidents Compensation (MAC), and
• an admin fee.

The registration fee is determined by the engine size in cubic centimetres and the number of cylinders.

To read more about registration fees in the NT, visit the NT government site.

South Australia

In South Australia, the car registration price is influenced by:

• the type of vehicle being registered
• where the vehicle will be garaged
• the use of the vehicle (private or business), and
• the number of cylinders a vehicle has.

CTP insurance is bundled into the registration fee and payable directly to SA Government Services. You have a choice between four government-approved insurers, including AAMI.

Read more about car registration in South Australia.

Western Australia

Western Australia’s Department of Transport calculates your registration fee based on the vehicle’s weight, which they call “kerb mass.”

The registration fee includes:

• a CTP insurance equivalent, called Motor Injury Insurance, and
• an admin fee.

You can find a list of Western Australia registration fees on the Department of Transport website.

Do I have to pay car registration fees if I move interstate?

If you’re moving interstate, you’ll need to register your vehicle with the local motor authority. However, the timeframe for doing this is different in each state.

Check the rules and be sure to change your registration on time. That way, you can avoid risking a hefty fine while staying safe and responsible on our roads.

What’s the difference between CTP and Third Party Property Damage insurance?

Compulsory Third Party (CTP) and Third Party Property Damage (TPPD) Insurance are often confused – which is the last thing you want to be after an accident.

Compulsory Third Party (CTP) Insurance is mandatory state-based insurance that you purchase along with or as part of your vehicle registration. It’s attached to your vehicle registration and covers the at-fault driver in case of compensation claims from people injured in a motor vehicle incident.

Third Party Property Damage Car Insurance, on the other hand, isn’t mandatory. However, it could help you save money if you are at fault in an accident. Third Party Property Damage Insurance only covers your liability for damage you cause to other people’s car and/or property – it doesn’t cover damages to your own vehicle. It also doesn’t cover your legal liability for injuries to other people.

To learn more about what’s covered with CTP or TPPD, read to the relevant Product Disclosure Statment (PDS) document.

Explore more Car Insurance options

Read more:

• What does CTP Insurance cover in Queensland?
• Do I need CTP Insurance for my motorcycle?
• Common car insurance myths busted

¹ Australian Automobile Association – Transport Affordability Index March quarter 2024

² Australian Automobile Association – Transport Affordability Index March quarter 2024

Insurance issued by AAI Limited ABN 48 005 297 807 trading as Suncorp Insurance. Read the  Product Disclosure Statement before buying this insurance. Go to suncorp.com.au for a copy. Target Market Determination is also available. This advice has been prepared without taking into account your particular objectives, financial situation or needs, so you should consider whether it is appropriate for you before acting on it.

The information is intended to be of general nature only. Subject to any rights you may have under any law, we do not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, incurred as a result of reliance upon the information. Please make your own enquiries.