ACT Labor to reward good drivers

ACT Labor is building a better community, one which has a strong local economy and more jobs than anywhere else in Australia.  We enjoy a high standard of living and we are investing in the future transport needs of Canberra.

ACT Labor has worked hard to improve the safety of all road users and reduce our rates of accident and injury on the road, by building better roads and through investing in more police.

Canberra has thousands of good drivers who abide by the rules, drive safely and do not attract penalties or infringement notices.  These drivers contribute to making our safety record even better.

There are currently around 275,000 full active driver’s licences (excluding heavy vehicles) in the ACT.

Data over the last 10 years indicates that around 60 – 65% of full licence holders attracted no demerit points or infringement notices over their five year licence period, and around one fifth of these will renew their licence each year.

New and young drivers should also be rewarded for safe driving practices.  Provisional licences are held for three years.  There are currently about 20,000 active provisional driver/rider licences in the ACT, with about 7,000 progressing to a full licence each year.  More than half of these, around 4,500, progress to their full licence without incurring demerit points or infringement notices.

These are the drivers, and the driving behaviour, that need to be encouraged and rewarded.

 

That’s why if re-elected in 2012, ACT Labor will encourage and reward good drivers by providing a 20% discount on fees for licence renewals and for P-Platers with clean driving records.

 

Policy costings

ACT Labor will forego revenue to provide a 20% discount to clean-record drivers renewing their full licence for a further five years, costing approximately $968,000 on 2012 licence figures.

ACT Labor will forego revenue to provide a 20% discount on the full driver licence fee to eligible provisional drivers on progressing to a full licence will cost approximately $154,000 on 2012 licence figures.

The proposal to provide a 20% discount will cost around $4.660 million over four years.

ACT Labor’s plan to reward good drivers

 

2013 – 2014

2014 -2015

2015 – 2016

2016 – 2017

TOTAL

Full licence renewals – revenue foregone*

$.968m

$.992m

$1.017m

$1.042m

$4.020m

P-Platers to full licence – revenue foregone**

$.154m

$.158m

$0.162

$0.166

$.640m

Total

$1.122

$1.150

$1.179

$1.208

$4.660m

Please note that figures may not total due to rounding.

* Assumes that one fifth of full licence holders who have no infringements in the last five years will renew their licence each year.  The number of full licence holders has been held constant.  Costing includes 2.5% annual indexation of the fees.

** The number of P plate licence holders has been held constant. Costing includes 2.5% annual indexations of the fees.

How will it work?

To encourage and reward good driving behaviour, a 20% discount on licence renewal fees will be given for drivers with a 5 year clean record—no demerit points and no infringement notices.  The current full licence fee is $157 for a five year licence.  A 20% discount will save each licence holder $31.40.

P-Platers who progress to a full five year licence with a clean driving record will also receive a 20% discount on the full $157 licence fee, again a saving of $31.40.

The road transport authority computer system that manages driver licensing arrangements will be enhanced to advise licensees of the discounted amount to be paid when sending reminder notices.