A proposal to cut vehicle registration costs for country drivers has been introduced to NSW Parliament, with Barwon MP Roy Butler arguing the current system unfairly penalises people living in rural areas.
The private member’s bill aims to ease cost-of-living pressures by recognising that rural residents rely on larger, more robust vehicles out of necessity, not choice.
Mr Butler said the existing registration framework disproportionately impacts regional communities, where smaller, fuel-efficient vehicles are often impractical.
“City drivers can get by with small, fuel-efficient cars because they rarely leave sealed roads, so a larger vehicle is a lifestyle choice,” he said.
“In the bush, small cars aren’t an option. We need vehicles that can handle rough terrain, unsealed roads, flood-damaged routes, and the very real danger of hitting animals like kangaroos, pigs, emus or livestock.”
Under the proposed Motor Vehicles Taxation Amendment (Rural Vehicles) Bill 2026, eligible rural residents would be able to register one vehicle as though it meets the 1,550kg taxable weight threshold, reducing the cost of heavier vehicles such as four-wheel drives and utes.
Mr Butler said these types of vehicles are essential for safety and day-to-day life in regional areas, but currently attract higher registration fees and increased fuel costs due to long travel distances.
“These vehicles — typically four-wheel drives or utes fitted with safety equipment like bull bars — attract higher registration fees and pay more fuel excise due to the greater distances travelled. So, country people are essentially taxed twice,” he said.
He also pointed to broader economic pressures facing regional communities, including lower average incomes and higher fuel prices.
“On top of this, incomes in regional NSW are generally lower than in Sydney or along the coast, while fuel usually costs more,” he said.
“Country residents are expected to pay more simply because of where they live and the vehicles they need to safely get around.”
Mr Butler described the proposal as a targeted and practical reform aimed at supporting those who underpin regional economies.
“This is a modest, sensible reform that acknowledges the reality of living in the bush,” he said.
“It’s a small concession to the primary producers, tradies, families and workers who quite literally keep the cities running.”
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