While the Western Australian Council of Social Service (WACOSS) welcomes the introduction of more flexible vehicle registration payment options, the reforms stop short of addressing affordability for the Western Australians who are under the greatest financial pressure.
The new options allow people to pay by direct debit every three, six or 12 months. The option that genuinely spreads payments across the year – monthly direct debit – has been available since 2022 and is unchanged by this announcement. Every option added this week is less frequent than what was already available.
WACOSS is concerned because while monthly payment options provide more financial flexibility, it remains the most expensive way to pay.
Monthly payments attract $31.16 a year in processing fees, compared with $9.50 for an annual payment. For many low-income households, there is no choice but to pay in smaller instalments because they simply do not have the spare funds available. It means people on the lowest incomes continue to pay a premium for being poor.
There is also no safety net when a payment fails. If a monthly direct debit is unsuccessful twice due to insufficient funds, the arrangement is cancelled and the customer is restricted to three, six or 12-month renewals, pushing them into a payment arrangement they have just demonstrated they cannot afford. It is clear that there needs to be a hardship pathway back onto monthly payments, not an automatic cancellation.
But payment timing is only half the picture.
WACOSS has consistently called for the vehicle licence concession to be extended to all low-income concession card holders. Western Australia already provides a full exemption from the vehicle licence fee for people on the maximum rate of Disability Support Pension or Carers Payment, and a 50 per cent reduction for other Pensioner Concession Card holders.
However, the eligibility rules leave out people on low incomes who need the support just as much, including sole parents and people looking for work.
Reliable access to a vehicle is often essential for getting to work, attending medical appointments, caring for family members and participating in community life, particularly in regional and outer metropolitan areas where public transport options can be limited.
A fairer system would flatten processing fees across all payment options and extend direct concessions to low-income households, ensuring that access to a vehicle remains affordable for those who need it most.
WACOSS Chief Executive Officer Louise Giolitto said while more flexible payment options are welcome, they don’t solve the underlying affordability problem.
“People on the lowest incomes should not pay more simply because they can’t afford a full year’s registration upfront. Real cost-of-living relief means reducing what people have to pay, not just rearranging when they pay it.
“That’s why WACOSS is calling for the vehicle licence concession to be extended to all low-income concession card holders.”
Meaningful amendments to vehicle registration payments and fees are just one of the key asks that WACOSS will be calling for when it releases its 2027-28 State Budget Submission on Friday.