Victorian motorists will be able to claim back 20 per cent of their car registration fees as part of a cost-of-living measure from the government.
From June 1, eligible vehicle owners will be able to apply for a rebate on the registration fees paid for the 2025/26 year through the Service Victoria website.
Registration for a single car currently costs $930.70 a year, with the discount meaning a driver will receive $186 back.
Victorians will be eligible to claim for up to two cars in their name, but the rebate will only be available until July 31.
The rebate comes after the government announced public transport discounts across the state as war in the Middle East continues to put pressure on fuel prices.
Public transport will remain free until the end of May and then be half-price for the rest of the year.
Jacinta Allan says the cost-of-living measure is necessary as the war in Iran pushes up prices. (ABC News)
Premier Jacinta Allan said it would “provide some relief at a time when working people and their families are looking for this support from their government”.
“I do want to acknowledge that this won’t solve every problem but it is another step we can take,” Ms Allan said on Sunday.
The car registration rebate is expected to cost the government about $750 million in foregone revenue.
Ms Allan said the blow to the state’s coffers would be accounted for in the upcoming budget.
“We can afford it because it’s one-off cost-of-living help right now, while we are delivering a surplus,” she said.
“Like cheaper public transport, this won’t fix everything, but it’s immediate action I can take to make a difference.”
The opposition has criticised the rollout of the rebate, saying the short eligibility period and need to apply would mean many Victorians miss out.
“You’ve got to find the form, fill in the form, have the form processed,” opposition spokesperson James Newbury said.
“The government could give you the money today. They don’t want to do that because they don’t want to give you the money, they want the headline.”
St Vincent de Paul Society Victoria chief executive Charlie Spendlove said while the initiative would provide temporary relief, more needed to be done to provide long-term cost-of-living relief for families..
“This concession is going to make a big difference right now for those living on the poverty line, living day-to-day, moment-to-moment,” she said.
“But what we really need the government to look at is long-term solutions, including affordable and community housing.”