Late law change lets diesel drivers duck charge rises

By VERNON SMALL

Drivers facing an average 30 per cent rise in road-user charges on diesel vehicles will be able to duck the increase if they pay in advance, because of a law change going through Parliament.

Officials estimate the Government will lose $5 million in revenue from people holding road-user certificates and from those who might buy more to pre-empt the tax rise due to take effect on April 1.

But National transport spokeswoman Belinda Vernon said the loss would rise to $22 million if all 377,000 users pre-paid for 10,000km - the average annual amount.

"The loophole has come about due to the Government removing the need for road users to apply for a new road-user licence within one month of a change in user charges," Ms Vernon said.

She blamed hasty law-making after the Government took urgency to debate the change yesterday.

Under the previous law, owners were required to return unused certificates and replace them at the new rate. The new law would remove that provision.

Transport Minister Mark Gosche said the Government knew some people could save money by stocking up on road-user certificates, but the alternative was to inconvenience up to 377,000 owners by forcing them to renew their existing certificates at the new rate.

"The Government is prepared to accept the fact that some people will have a few thousand kilometres on their certificates that they won't have to buy at the new rate," he said.

"We are prepared for that because of the lower compliance cost for the average motorist."

Mr Gosche said it was not a loophole. Diesel vehicle owners would normally buy about 10,000km in advance, so they would save on average about $60.

"People are not going to go out and buy bulk certificates to save a few dollars, but they could if they wanted to," he said.

The increase in road-user charges for diesel vehicles under four tonnes was foreshadowed in the Government's $227 million transport package announced last month, which also pushed the price of petrol up 4.7c a litre.

Owners of 255,767 two-tonne diesel vehicles, such as Mazda Familias or Holden Rodeos, are facing an extra $6.28 (including GST) for every 1000km they travel.

Those with one-tonne vehicles, such as a Daihatsu Charade, will be able to make the biggest savings if they buy their kilometres in advance.

They will be hit with a 57 per cent increase on April 1, taking the charge from $14.38 to $22.58 for every 1000km.

Ms Vernon said the Government's own supporters would be hardest hit because low-income earners were less able to buy their kilometres in advance.