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Cost of living report : Concessions and the Cost of Living



Cost of living report : Concessions and the Cost of Living


Northern Territory Council of Social Services Incorporated report; Reports; PublicationNT




Made available via the Publications (Legal Deposit) Act 2004 (NT).




Northern Territory Council of Social Service -- Periodicals; Public welfare -- Northern Territory -- Periodicals; Social service -- Northern Territory -- Periodicals; Non-governmental organizations -- Northern Territory -- Periodicals

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Northern Territory Council of Social Service Incorporated

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Issue 14

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21 The erosion of the value of the concession is also demonstrated by an examination of the concession as a proportion of the full bill payable (had the concession not applied) which has gone down from 27.8% to 22.8% between September 2011 and September 2016 (for a vehicle 1000 1500ml), as shown in Figure 8. In addition Figure 9 shows that the dollar value of the erosion of the $77 concession, illustrated by the increase in the cost of registering a vehicle in 2016 compared with 2011 - which has been a $61 rise for a small vehicle and a $71 rise for a larger vehicle. These increases have nearly eroded all of the value of the $77 concession over this period. Figure 9: Change in cost of Motor Vehicle Registration Sep 2011 - Sep 2016 Source: MV Registration Fee data taken from NT Government 2011 and 2016f NTPCSS Concession rates taken from NT Government 2009 and 2016e NOTE comparison is made with a vehicle 1001-1500 ml for 6 months registration When we examine the concession and registration costs going back to July 2010 (after the concession was increased to $77 in July 2009) we find that the cost of registering a small vehicle has risen by $68.25; and for a slightly larger vehicle the increase has been $76.75 (just short of the value of the $77 concession) (NT Government 2010, NT Government 2016f). The value of the motor vehicle concession since it was last increased over 7 years ago, has been almost been completely wiped out by the subsequent price rises. What is required is for the motor vehicle registration concession to be raised from the existing rates of $77 for 6 months, or $154 for 12 months, to a higher concession rate, given that the last increase was in 2009. In addition an indexation system needs to be put in place to ensure that each year the concession rises in line with the yearly increase in motor vehicle registration fees. It is unclear why indexation has not occurred in the past, given that other concession areas e.g. utilities are indexed in line with price rises. Had the concessions risen in line with the fees increases over the last six years the concession rates would be currently around $96 for six months and $192 for 12 months (which would reflect the percentage value of the concessions in relation to registration fees in 2010 (28.5%, and 28.9% respectively).

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