New Queensland rego scheme to cut costs and boost convenience

Queenslanders will soon be able to pay their car registration every three months under a new direct debit scheme to be rolled out by the Palaszczuk Government.

From July 1, motorists will have the option of paying their rego by direct debit either every three months, six months or yearly.

Deputy Premier and Transport Minister Jackie Trad said the changes would mean a reduction in fees for some vehicle owners.

"As part of the introduction of this new option, the Queensland Government will also reduce the surcharge for six-monthly registration fees from July 1, 2015," she said.

Once enrolled in the scheme, customers no longer would have to manually pay their registration

"Queenslanders will now be able to take these payment terms into account when managing their household budget."

The surcharge on the present six-monthly bill will be reduced from a total of $34.70 for the combined CTP and registration surcharge to $25.20 - a saving of $9.50 - if the direct debit scheme is used.

Those who choose to pay three-monthly will also be subject to a $25.20 surcharge.

The direct debit option will initially be available only to light vehicles

According to the document supporting the change, the direct debit option would simplify registration renewals, as once enrolled in the scheme, customers no longer would have to manually pay their registration. Payments will be made automatically from nominated accounts.

"The reduction in existing surcharges will mean lower costs for motorists who choose to renew their vehicle registration for periods of less than one year," the document says.

The direct debit option will initially be available only to light vehicles. Eligible purposes of use will include private, commercial, farm, limousine, special-purpose limousine, non-profit, taxi companies, peak-demand taxi and driver training or tuition.

Opposition Transport spokesman Scott Emerson said he commissioned TMR to explore the idea of introducing direct debit for car rego.

"The question is what is Labor going to do in terms of rego itself," he said.

"We froze it throughout our three terms but under Labor...it went up by 30 per cent in three years."