Advertisement

NSW motorists pay 'secret tax' for CTP green slip refund

NSW drivers are being charged a non-refundable $10 administration fee when applying for a refund for a CTP green slip.

This "secret tax", according to the opposition spokesperson for innovation and better regulation, Yasmin Catley, "will bring in more than $40 million for the Berejkilian government - enough to run a medium-sized government agency''.

Sydney drivers will be slugged a $10 fee when claiming a green slip refund.

Sydney drivers will be slugged a $10 fee when claiming a green slip refund.

Photo: Wolter Peeters

Following an overhaul of the compulsory third-party car insurance scheme last year by the NSW government, most motorists are now eligible to receive a partial refund on their green slips.

The reform was welcomed by Sydney drivers who are set to receive an average refund of $70 while country drivers will pocket $30.

More than 200,000 refunds, which are capped at $125 for private vehicle owners, were claimed within the first two days of the new online reimbursement scheme.   

Advertisement

However, those eligible for a refund are also being charged an administration fee to process each claim.

According to the official Service NSW website: "There is a minimum refund amount of $10 and each refund is subject to an administration fee."

Loading

If the claim is less than $10 "before or after the administration fee has been applied" motorists are not eligible for a refund.

Ms Catley claims this extra charge is a slap in the face to NSW vehicle owners, who already pay the highest green slip prices. 

"The government is offering a second rate insurance scheme that will leave many innocent victims of motor vehicle accidents at the mercy of insurance companies," Ms Catley said.

Fairfax Media has approached the Minister for Finance, Services and Property, Victor Dominello, for comment.