As a move to make our tax system more progressive, changes will be made to the Additional Registration Fee (ARF) structure. The new ARF rates will now apply at between 100% to 320% depending on the tier of the open market values (OMV) of the vehicle. The changes are projected to affect the top one-third of vehicles by OMV. As a double squeeze on more expensive cars, there will be a $60,000 cap on the Preferential Additional Registration Fee (PARF) rebate upon the de-registration of a vehicle. This effectively raises the cost of car ownership.
Although the Government has a stated target of phasing out vehicles with internal combustion engines in favour of vehicles running on cleaner energy by 2040, there is surprisingly no mention of an extension of the 45% rebate off ARF for buyers of electric cars and taxis (this will expire on 31 December 2023). There also appears no exception will be made for electric vehicles in respect of the newly introduced cap on PARF rebate.
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