Victorian drivers will receive a 20 per cent discount on car registration under the 2026/27 State Budget, as the state government moves to ease rising cost-of-living pressures linked to global fuel prices.
The state government says the rebate will return up to $186 for a single vehicle, based on current registration costs of up to $930.70, with households able to claim up to $372 for two cars. The measure is expected to cost around $750 million in foregone revenue.
The rebate will be available from 1 June, with eligible vehicle owners able to apply through Service Victoria until 31 July.
It applies to light vehicles used for personal purposes, including cars and utes under 4.5 tonnes, and is capped at two vehicles per individual regardless of household size. The refund will cover 20 per cent of registration payments made for the 2025/26 period.
The announcement builds on existing public transport fare reductions, including free and discounted travel initiatives already rolled out across the state.
Premier Jacinta Allan said the measure was designed to deliver immediate relief for households facing increasing financial strain.
“As Premier, I’m determined to use government to help Victorians who are under pressure,” Allan said.
“Like cheaper PT, this won’t fix everything, but it’s immediate action I can take to make a difference.”
Allan said the government could absorb the cost as a one-off support measure while maintaining a budget surplus.
“We can afford it because it’s one-off cost-of-living help right now, while we are delivering a surplus,” she said.
The government has framed the policy as part of a broader effort to offset rising fuel costs driven by ongoing conflict in the Middle East, caused by Donald Trump, with further cost-of-living measures expected in the upcoming budget.
