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Legislative Assembly for the ACT: 2018 Week 03 Hansard (Thursday, 22 March 2018) . . Page.. 1041 ..

(3) What concessions, subsidies or offsets are available for compulsory third party insurance, paid in conjunction with registration fees.

(4) Has the Government received any concerns or complaints that the cost of compulsory third party insurance remains a barrier for low-income individuals despite vehicle registration concessions.

(5) What actions has the Government taken to reduce the impact of compulsory third party insurance on low-income individuals.

Mr Barr: The answer to the member’s question is as follows:

(1) Yes –

Holders of current Centrelink and Department of Veterans’ Affairs (DVA) Pension Concession Cards are entitled to 100 per cent discount on registration; and

Holders of ACT Seniors Cards are entitled to 10 per cent discount on registration. Seniors with gas or electric powered vehicles are entitled to 28 per cent discount on registration.

(2) Yes – Low-Income Health Care Card holders are eligible for the following concessions in other states and territories:

In Victoria, 50 per cent discount on vehicle registrations; and

In Tasmania, specific discounts for registration of motor vehicles ($49.10), trailers ($25.50), and motorcycles ($44.10).

(3) Compulsory third-party (CTP) insurance is a statutory insurance scheme underwritten by private insurers, designed to cover the at-fault driver to ensure he/she is not personally responsible for compensating injured persons. As such, to ensure that compensation (payable out of premiums) is available to the injured parties, and the scheme is fully funded, concessions are not provided directly to people on low-incomes.

However, the ACT’s CTP insurance scheme is a ‘community rated’ scheme, with all motorists for each vehicle class paying the same amount for CTP insurance regardless of their individual risk profile.

‘Community rated’ schemes provide equality and affordability, and reduce the cost of CTP for drivers with differing circumstances (such as young and older drivers), a number of whom may also be low income individuals:

Individual circumstances, such as the age of the driver, the driving record, the age of their vehicle, and the vehicle’s location, do not vary the premiums payable by individuals.

Since competition was introduced to the CTP scheme on 15 July 2013, CTP premiums have fallen on average by $40.23, or 6.8% - the consumer price index has increased by 7.0% over the same period. Competition has also delivered a better range of products and enhanced coverage, such as, at-fault driver cover being offered by most insurers. The benefits from competition have flowed to all motorists, including low-income individuals.

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