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Road Safety Levy Fact Sheet

When will the road safety levy increase and by how much?

  • From 1 November 2011 the Road Safety Levy will rise by $5 to $25 per annum.
  • A concession rate of $15 per annum will apply for those people who are eligible to receive a concession on their registration, refer to vehicle registration concessions.
  • The life of the road safety levy will also be extended for a further five years to December 2017.

Who is required to pay the road safety levy?

  • The levy applies to all registered vehicles with broad access to the road network. That is, only limited or restricted access vehicles will be excluded. A list of vehicle registrations included and excluded from the levy is shown below:

Vehicle Registrations Included in Levy Vehicle Registrations Excluded from Levy

Bus
Car
Caravan
Horse float
Motorcycle
Stationwagon
Heavy trailer
Domestic trailer
Truck
Utility
Van
Special Purpose Vehicle*

Ambulance
Farm tractor
Fire trailer
Fire vehicle
Trade plates
Interstate trailer
Interstate vehicle
Off road
Conditional**
Tractor

* Special Purpose Vehicles include Work Vehicles.
**Conditional includes Restricted, Special Interest, Vintage & Street Rods.

Do I have to pay the road safety levy for each vehicle I  have registered in my name?

  • The road safety levy must be paid for each eligible registered vehicle regardless of the operator.
  • If a person has multiple vehicles (including trailers and caravans) registered in their name, they must pay the road safety levy for each vehicle.

How is the levy shown on registration notices?

  • The road safety levy is shown as a separate component of the total cost of registration.

Periodic registrations

  • The levy is pro-rata for the period of registration.

Refunds

  • There are no refunds of the levy.

Why did the Government introduce a road safety levy?

  • The road safety levy was first introduced on 1 December 2007 to fund ongoing key initiatives in the Tasmanian Road Safety Strategy 2007-2016 (the Strategy). The objective of the Strategy is to eliminate serious injuries and fatalities on Tasmanian roads in the long term.
  • Road trauma is a significant issue in Tasmania. Each year from 1996 to 2005, on average more than 48 people were killed and more than 470 admitted to hospital as a result of road crashes.
  • Since 2007, the Tasmania Together long-term target has been 'by 2010 to achieve a 20% reduction in serious injuries and fatalities from 2005'. This target was exceeded with a 32.5% reduction achieved. Progress can be seen on the graph below.
  • The road safety levy is the best mechanism to ensure adequate funding to achieve the actions from the Strategy and to continue the reduction in road trauma.
  • New initiatives contained in the Strategy, such as improving road infrastructure cannot be implemented without extra funding. Without additional funding further significant reductions in road trauma cannot be achieved.
  • The road safety levy is a fund that is set aside and is only able to be spent on improving road safety in accordance with the Strategy. This is an important mechanism to fund ongoing major changes to the roads and driving environment with the aim of creating a transport system where if a motorist makes a mistake on the roads, death does not result.

Serious Casualties Graph

What is the road safety levy being used for?

How is the community benefiting from the road safety levy?

  • Funding from the road safety levy is being used to make significant changes to the road environment, to young driver safety, to vehicle safety and to travel speeds. This is reducing the amount of deaths and serious injuries on our roads. Improving road safety has benefits for the whole community.
  • The funding is being used to make roads safer for all road users and all age groups.
  • The Tasmanian Road Safety Strategy 2007-2016 (the Strategy), has helped to achieve a 32.5 percent reduction in serious injury and fatality crashes in Tasmania in the five years to 2010. The Strategy aims for the eventual elimination of serious injuries and fatalities on Tasmanian roads.
  •  To date, some of the funded initiatives have included:
    • Roll out of electronic speed limit signs at schools, 432 signs installed as at the end of June 2011.
    • Installation of flexible safety barrier on Tasmania?s major highways and arterial roads.
    • Reforms to the novice driver licensing system

For further initiatives, see the:

Why doesn't the Government just use the money from motor tax revenue to pay for road safety?

  • The road safety levy is a separate fund that, by law, can ONLY be spent on reducing road trauma and improving road safety in accordance with the Strategy. This separate trust fund guarantees secure funding to improve road safety.
  • Motor tax revenue is directed into the Consolidated Revenue Fund. Applying the money from motor tax to road safety would not guarantee funding levels over a five-year period, as Consolidated Fund Revenues can be re-directed to any Government services or initiatives. On the other hand, levy money deposited into at trust fund can only be spent on road safety and cannot be re-directed.
  • Using motor tax revenue from the Consolidated Fund would not allow those implementing the Strategy to plan the same level of long-term strategic and targeted initiatives. Nor would it foster the same level of accountability and transparency for the community.