Regions hit hardest with 'ridiculous' car rego hikes

CAR registration to rise above inflation very soon, but Warwick mechanic says cities are reaping the benefits while us in the bush are missing out.

RIDICULOUS: B&K Motors owner Dave Kemp pays registration on about 12 different vehicles. With fees increasing every year, it's a strain on his local business. Picture: Marian Faa

CAR registration fee increases above inflation are "unjustified" when regional people pay more and miss out, a Warwick mechanic says.

The cost of car registration will increase by 3.5 per cent on July 1, making Queensland the most expensive place to register your wheels.

It's the last time fees will rise above the rate of inflation before the state moves to a CPI-based escalation of fees and charges next year.

But B&K Motors owner Dave Kemp said regional people were paying for inferior roads.

"They don't inject any money into the regions," Mr Kemp said.

"Once you get this side of the Gap, our roads are full of potholes."

TOO STEEP: B&K Motors owner Dave Kemp said registration can easily creep up without you knowing. Picture: Marian Faa

This is despite paying the same amount on car registration as people who live in Queensland cities.

Paying registration on about 12 different vehicles, Mr Kemp feels the sting of fee hikes more than most.

But he said people in regional areas relied heavily on their cars in the absence of the major public transport networks seen in cities.

"It's very common to have multiple registered vehicles - most people can't get by with just one car when you live out here."

The cost of registering a four-cylinder vehicle will increase from $364.65 to $377.40 including the traffic improvement fee but not compulsory third party insurance.

The cost for a six-cylinder vehicle will jump from $545.80 to $564.90.

Mr Kemp said paying registration on multiple vehicles took its toll on local businesses.

"You have more outlays every week with rego increasing but you can't charge customers more than what you already are."

BANK BUSTER: Buying his first car was a moment of independence Joel Monckton looked forward to his whole life. But he wasn't prepared for the shocking cost of registration. Picture: Marian Faa

Apprentice mechanic Joel Monckton recently bought his first car and said young drivers often got caught out with car rego fees.

"You sort of don't know it's coming until it comes in the mail and you've only got so long to pay it," Mr Monckton said.

On an apprentice wage, car registration on top of other fees like insurance takes a big whack out of Mr Monckton's budget.

But the government's promise to ditch the 3.5 per cent indexation rate by July next year is likely to limit further car registration increases.

CPI is projected to increase by 2.5 per cent a year, consistent with the mid-point of the Reserve Bank of Australia's target band.

This change is expected to result in a reduction in revenue of $25 million in 2019-20.

"That's tens of millions of dollars back in Queenslanders' pockets every single year," state treasurer Jackie Trad told the Courier Mail.

The Department of Transport and Main Roads was unable to provide a comment.

Originally published as Regions hit hardest with 'ridiculous' car rego hikes