NSW drivers copping ‘secret tax’ on green slip refunds

MANY NSW drivers know whether they’re eligible for a green slip refund, but may not be aware of the fee they will be charged to get their own money back.

NSW drivers copping ‘secret tax’ on green slip refunds. Picture: Carmela Roche/AAP

BY NOW most drivers are be aware of the CTP green slip refund rolled out by the NSW government but many may not know they are being charged a non-refundable admin fee to do so.

The refunds comes as part of reforms which have reduced CTP premiums by up to $172 a year and means most NSW motorists are eligible for a partial refund on their green slips.

Under the reform motorists can get a maximum of $125 back, but what they might not know is that they are actually paying to receive this refund in what as been criticised as a “secret tax”.

Even if you are entitled to a $10 refund the admin fee means you won't be eligible after it is applied. Picture: Service NSW

The Service NSW website states that each refund is “subject to an administration fee”, which

Minister for Finance, Services and Property Victor Dominello told the Sydney Morning Herald amounted to $7.87.

The website goes on to state that refunds of $10 or more can be claimed, but if it comes to less than that after the $7.87 fee is applied then the vehicle is not eligible for a refund.

This means that even though the minimum refund that can be claimed is $10, you actually have to be eligible for $17.87 or more to get any money back.

Mr Dominello defended the fee, saying it will ultimately be returned to motorists by reducing next year’s medical services levy.

Motorists are eligible for a maximum refund of $125. Picture: Carmela Roche/AAP

But the Shadow Minister for Innovation and Better Regulation Yasmin Catley slammed the extra charge as an insult to NSW drivers, claiming it will “bring in more than $40 million for the Berejkilian government”.

“The government is offering a second rate insurance scheme that will leave many innocent victims of motor vehicle accidents at the mercy of insurance companies,” Ms Catley told SMH.

Those looking to apply for a refund can do so from 7pm and 7am Monday to Saturday and all day on Sunday.

Eligible motorists have until September 30 to claim their refund. After that time any unclaimed refunds will go towards administering the new motor accidents scheme.