New formula means struggling SA families will be sheltered from big fee hit

Drivers license fees will be among a raft of state government charges to increase this year, but the treasurer says it actually represents good news. Search the full list.

State Government fees and charges will be increased in the state budget next month, but cushioned from the full horror of near 8 per cent inflation.

Treasurer Stephen Mullighan said on Saturday the annual hike in a raft of government fees and charges from July 1 would be around 4.8 per cent on average.

The news is in marked contrast to many councils which are predicting a rates hike of near inflation in their annual budgets.

“While 4.8 per cent is an increase it will be further welcome news for households and businesses and significantly less than inflation,’’ Mr Mullighan said.

But the increase has raised the ire of the Opposition, which pointed to Mr Mullighan’s commitment during the cost of living crisis not to use CPI in the calculations if it was high this year.

Mr Mullighan said he had used the traditional formula for calculating the annual increase, which was based on government wage costs and CPI, with wage costs going up only 3 per cent.

“In 2019/20 the previous Liberal government increase fees and charges by two and a half times the rate of inflation,’’ he said.

“That meant a 5 per cent increase when inflation was 2 per cent at the time.”

The increases mean the current 4.05 public transport fare will be 4.25 and ten-year drivers licence renewal will be $510 instead of $490.

But Opposition treasury spokesman Matt Cowdrey hit back, and said over the last 12 months the average SA family was $17,000 worse off because of the cost of living crisis.

“This is the Treasurer taking out the trash on a Saturday afternoon before the budget ,’’ he said.

Mr Cowdrey said Mr Mullighan had said he would find relief from large increases if inflation was high.

SA Treasurer Stephen Mullighan. Picture: Roy VanDerVegt

“What he has done is use the usual calculation using the high inflation and the wage costs, so there is no relief,” he said.

There is better news for motorists, who will enjoy CTP premium cuts from July 1.

Added to the government tax on car registration, the reduction in this private company component of their registration will mean that around half of SA motorists will be paying slightly less next year to keep their car on the road.

The cheapest premium offered to motorists will be $276 for metropolitan based private passenger vehicles, down $18.15 or 6 per cent, and country owners will be given a 4 per cent cut, down $8.57.

The cuts are the ongoing effects of the competitive CTP scheme launched in 2016 and will affect all classes of vehicles.

Treasurer Stephen Mullighan said since the competitive scheme began the $276 figure — which covers most vehicles in the state – has been slashed from $411.