Covid-19: car rego rise frozen

State Treasurer Tim Pallas says freezing, not waiving car registration fees is a "fair" outcome.

By Cam Lucadou-Wells

Vehicle rego fees and fines will be frozen, and businesses on the JobKeeper scheme will be given tax exemptions under a further $491 million of State Government Covid-19 relief.

On 5 May, Treasurer Tim Pallas said the Government’s priority was on helping people and businesses through the pandemic not on the “economic dollars”.

He also defended the Government’s cautious approach to relaxing social distancing as Victoria’s new spike in coronavirus cases continued on 4 May.

Prioritising the health and wellbeing of the community was the best economic strategy, he said.

“The quickest way out of this problem is through it.”

New coronavirus cases rose 17 on 4 May – with infections recorded in Greater Dandenong, Casey and Cardinia in recent days, though none overnight.

Eleven of them were sourced to the Cedar Tree meat processing factory in Melbourne’s West – a cluster that’s now grown to 45.

One of the new cases was in mandatory hotel quarantine, two found in drive-through testing and three of the sources were under investigation.

The state’s total infections total 1423, with the death toll remaining on 18 and 1311 recovered.

Twelve infected patients are in hospital, including six in ICU.

On 5 May, Treasurer Tim Pallas announced $425 million of payroll tax and WorkCover premium exemptions on workers stood down and paid the $1500 JobKeeper fortnightly allowance.

It would mean businesses were free from all state government taxes and charges on these staff.

So far, about 80,000 Victorian businesses had applied for the Commonwealth’s JobKeeper scheme, which started rolling out payments this week.

Mr Pallas said the latest package was “a work in progress” designed to complement JobKeeper and its unfolding impact.

It was “making things easier for businesses doing the right thing”.

All fines and fees will be frozen from a July increase – a $66 million “saving for the community”, Mr Pallas said.

These include car rego, traffic infringements, court fines and permit fees.

The Fire Services Property Levy on households will also be frozen at 2019-’20 levels.

Car rego wouldn’t be waived, striking a balance between the stress on family budgets and the need to fund services.

“There will be value for the community as economic recovery picks up. And that’s why … a freeze is the fairest way to manage this.”

By 1 July Mr Pallas expected to see a “progressive” economic improvement from a “dramatic” downturn.

Downturns had been particularly steep in the hospitality sector (down 60 per cent) and retail (down 17 per cent).

The “first iteration” of social distancing relaxation would not have profound economic impact. “But we’re not there yet”, he said.

The package is part of $3 billion of State relief during Covid-19, including tax refunds, business grants, landlord and tenant relief, deferred landfill levy and the Working For Victoria jobs scheme.

Meanwhile, Victoria Police fined 26 people for not complying with social distancing restrictions on 4 May.

They included a man in a Box Hill home with an escort he sourced from online, several people from different residences travelling in the same vehicle, as well as people charged with drugs, weapons and possessing stolen goods offences.