Victorian drivers will receive a 20 per cent rebate on car registration as part of the 2026–27 state budget, with the measure aimed at easing pressure from rising fuel costs linked to conflict in the Middle East.
The rebate applies to light vehicle owners and is expected to return up to $186 for a single car and up to $372 for households with two vehicles. Registration for light vehicles currently costs up to $930.70 a year.
The Victorian Government said the initiative follows earlier changes to public transport fares, including free and discounted travel, and is designed to support households facing higher day-to-day expenses.
Premier Jacinta Allan said the decision was focused on immediate relief. “As Premier, I’m determined to use government to help Victorians who are under pressure.”
She added, “Like cheaper PT, this won’t fix everything, but it’s immediate action I can take to make a difference.”
The rebate will be available from 1 June, with eligible vehicle owners able to apply through Service Victoria. Applications will remain open until 31 July.
The refund will cover 20 per cent of a vehicle’s registration payment for the 2025–26 period. It is available to owners of cars, utes and other light vehicles under 4.5 tonnes used for personal purposes. Individuals can claim the rebate for up to two vehicles registered in their name.
The government said the policy would result in around $750 million in reduced revenue, describing it as a one-off response to current cost pressures while maintaining a budget surplus.
Premier Allan said, “We can afford it because it’s one-off cost-of-living help right now, while we are delivering a surplus.”
Minister for Government Services Ingrid Stitt said the application process would be straightforward. “Every saving counts, and you’ll get simple access to your rebate through Service Victoria.”
Minister for Roads and Road Safety Ros Spence said the rebate would assist households managing rising costs. “This will put money back in the pockets of Victorians facing ongoing cost-of-living pressures.”
Minister for Cost of Living Paul Edbrooke said the broader approach included cuts to fees and transport costs. “We’re slashing fees and fares because we’re serious about addressing the cost of living.”
The government said the measure builds on recent changes to transport pricing and is part of a wider effort to reduce household expenses during a period of higher fuel prices.
Support Independent Community Journalism
Dear Reader,The Indian Sun exists for one reason: to tell stories that might otherwise go unheard.
We report on local councils, state politics, small businesses and cultural festivals. We focus on the Indian diaspora and the wider multicultural community with care, balance and accountability. We publish in print and online, send regular newsletters and produce video content. We also run media training programs to help community organisations share their own stories.
We operate independently.
Community journalism does not have the backing of large media corporations. Advertising revenue fluctuates. Platform algorithms change. Costs continue to rise. Yet the need for credible, grounded reporting in a multicultural Australia has never been greater.
When you support The Indian Sun, you support:
• Independent reporting on issues affecting migrant communities
• Coverage of local and state decisions that shape daily life
• A platform for small businesses and community groups
• Media training that builds skills within the community
• Journalism accountable to readers
We cannot cover everything, but we work to cover what matters.
If you value thoughtful reporting that reflects Australia’s diversity, we invite you to contribute. Every donation helps us maintain the quality and consistency of our work.
Please consider making a contribution today.
Thank you for your support.
The Indian Sun Team
