Victorian govt to reduce licence and rego costs as VicRoads is partially privatised

The Victorian Government has announced a number of cost-cutting measures for the state's drivers, as it partially privatises VicRoads.

A 40-year contract has been signed between the Andrews' Government and a consortium of two super funds — Aware Super and Australian Retirement Trust — and Macquarie Asset Management to deliver the VicRoads Modernisation process, upgrading the state's road-related IT systems.

Set to inject around $7.9 billion back into the State Government, the cash will go into the Victorian Future Fund to help manage its pandemic debt, although it's not just the authority set to benefit from the deal.

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On top of the 120 jobs expected to be created, learner and probationary licences will become free – saving up to $51.40 in learner licensing and online testing fees, while probationary drivers will save up to $133.30 in license and online hazard perception testing fees.

Safe drivers will also be incentivised, with those who haven't incurred any demerit points or road safety offences in three years to be given a 25 per cent licence renewal discount.

“This is a win for all Victorians – it means a better experience for drivers and owners of cars, motorbikes, trucks and boats, and continued investment in VicRoads for future generations," said Treasurer Tim Pallas.

“It’s a terrific start for the Victorian Future Fund, which will deliver major benefits for Victorians as we continue to recover strongly from the shocks of the pandemic.”

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However, the decision to privatise a part of VicRoads has drawn criticism from both sides of the political spectrum, with members of both the Victorian Greens and the Liberal Party of Victoria calling out the Victorian Government.

“The sell-off of VicRoads’ licensing and registration function has put the interests of private profit over the public good," said Greens MP and transport spokesperson, Sam Hibbins.

“The lease, which will not expire until the 2060s, will mean higher fees, lower quality customer service, and less jobs, lower wages, and conditions for workers for decades to come. It will put control over another public asset in private hands.

"It is yet another privatisation by a Government that has the biggest privatisation agenda since Kennett. With the privatisation of Port of Melbourne, the Land Titles Office, public housing estates and now VicRoads, Victorians have a right to know months out from the election what other public assets or agencies are on the Government’s privatisation hit list.

“The Government’s so-called ‘Future Fund’ is a neoliberal economic policy using the sale of public assets and public land to service debt. Even more concerning is that the Government has not ruled out or excluded future fund investments in climate change causing fossil fuels."

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Shadow Treasurer David Davis was equally critical, telling the ABC the deal would eventually lead to higher costs for motorists.

"The Andrews Government is selling off what Victorians own to pay for its record debt, its mismanagement, the cost blowouts on so many of our major projects," said Davis.

"Don't be fooled by the Government's spin. This sale will mean higher prices for licences, registration. It will mean higher costs for commuters. It will mean higher impacts on family budgets."

The announcement comes less than a week after the Victorian Government confirmed it was increasing its controversial road user charge for zero and low emissions vehicles.