Car rego hike in Victorian budget

Victorian car registration and stamp duty will be increased to pay for new infrastructure spending in the upcoming state budget.

The budget measures will raise $136.8 million in 2014/15.

Treasurer Michael O'Brien said the money would be used to help fund road and transport projects.

"The $25 fee increase for motor vehicle registration amounts to less than 50 cents a week," he told reporters on Thursday.

Mr O'Brien said the $25 hike in car registration comes on top of the annual CPI-based increase.

This will raise the average registration fee by $32 in 2014/15.

"We appreciate that any increase in car rego is not likely to be welcomed, but we do note that we will be delivering major transport infrastructure in this budget that will be of direct benefit to Victorians," Mr O'Brien said.

Stamp duty on a new $20,000 car will rise from $600 to $640 and from $400 to $420 on a used $10,000 vehicle from July 1.

"In the scheme of things these are relatively modest changes, but it is important that we make sure that this budget is economically responsible and that we can properly fund the new infrastructure that we will be announcing in the budget," Mr O'Brien said.

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