Motorists in Victoria offered $186 rego rebate to cushion cost-of-living crisis

After extending free public transport for an extra month and offering half-price fares until the end of the year, the Victorian government will cushion the fuel shock blow for motorists too.

Car registration in the state will be slashed by 20 per cent from early next month until July 31 as part of a temporary rebate scheme, expected to save the average driver up to $186 per car.

The cost-of-living measure is only available for Victorians with a car registered between July 1, 2025 to June 30, 2026.

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Registration for a single car in Victoria costs $930 per year.

Drivers claiming the full rebate will end up paying $744 for 12 months of registration instead.

Victorians will be allowed to claim the rebate for up to two cars in their name for eligible vehicles, including cars, station wagons, motorcycles, utes, vans and light trucks.

The government is yet to offer more details on how the rebate will be claimed.

The state-wide rebate is understood to come as a $750 million blow to the Victorian government's already debt-ridden budget.

However, Premier Jacinta Allan said the cost of the rebate will be accounted for in next week's budget.

"We can afford it because it's one-off cost-of-living help right now, while we are delivering a surplus," Allan said.

"Like cheaper public transport, this won't fix everything, but it's an immediate action I can take to make a difference."

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The opposition has criticised the rebate scheme for the small window of time it is available, claiming many Victorian drivers won't see the savings.

"You've got to find the form, fill in the form, have the form processed," opposition spokesperson James Newbury said.

"The government could give you the money today.

"They don't want to do that because they don't want to give you the money, they want the headline."

The Victorian government announced last month it would extend free travel on trains, buses and trams until the end of May.

Half-price travel will be in place until the rest of the year in response to the fuel crisis triggered by the war in the Middle East.

The cost of the government's free transport initiative has been calculated at around $432 million dollars.

Since the fare-free travel began in April, Transport Minister Gabrielle Williams said there has been a 10 per cent increase in patronage across Melbourne and regional public transport.

Opposition Leade Jess Wilson said at the time it was unfair that drivers who could not use public transport would not benefit from the scheme.

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