Fee rises inflate Brumby coffers
Herald Sun, Page: 9, Wednesday, 19 March, 2008
Thousands of state government fees and fines will soar more than ever before from July 1.
The cost of speeding fines, vehicle registration, firearms licences and birth certificates will all go up.
Rising inflation will deliver a multi-million-dollar windfall for the Brumby Government thanks to indexation of the charges.
Fees and fines will rise 3 per cent, the highest jump since indexation began in 2003.
The rate is based on the Melbourne consumer price index, and has until now been no higher than 2.5 per cent.
Automatic indexation on fines will boost the bottom line by about $23 million.
Details of the new rate were quietly published by the State Government last week.
The full cost of a driver’s licence will rise from $149.50 to about $154.
Car registration fees, excluding third-party insurance, will go up about $5.20 to $178.
Speeding fines for offences less than 10km/h over the limit will go from $138to about $142.
Fines for more serious speeding offences will rise by up to $14.
One penalty unit, upon which the cost of fines is based, was worth $102.25 in 2004 but four years later will be $113.42.
The automatic indexation policy was introduced by then treasurer John Brumby during the 2003 Budget, but did not begin until the following year.
“It’s good policy, right. Otherwise they just go up and down, and up and down,” Mr Brumby said at the time.
Opposition treasury spokesman Kim Wells said the coalition was considering its policy on indexation.
“As we are entering a stage of high inflation, I am very concerned about the additional cost on lower income families at a time of higher interest rates and higher petrol prices,” Mr Wells said.
A spokesman for Treasurer John Lenders said indexed charges prevented large one-off increases in the future.
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