Transport Accident Charge
When you register a vehicle in Victoria you will be provided with a fee breakdown which includes a registration charge, TAC charge and insurance duty.
These individual fees are then distributed to the relevant government bodies with the TAC charge going to the Transport Accident Commission.
What is the TAC charge?
The TAC charge is used to fund the work of the TAC in preventing accidents and caring for those who have been injured on our roads.
Last year alone over 43,000 people were supported after an accident.
We fund a range of services to help people get their lives back on track including medical care, rehabilitation, counselling, home modifications and income support.
The TAC charge will cover the owner and driver for any liability (including large court payouts) if your vehicle causes the death or injury of another person. Please see Section 94 of the Transport Accident Act 1986 for details about who is covered.
We work closely with VicRoads, Victoria Police and the Department of Justice to implement Victoria's road safety strategy, which seeks to reduce death and serious injury on our roads by more than 30% by 2022.
In the next ten years the TAC has allocated over a billion dollars to improving Victoria's roads. Those funds will go towards targeting high-risk accident locations, installing roundabouts at intersections, and implementing run-off road preventions such as wider shoulders, ripple strips and wire barriers.
The TAC also provides innovative public education campaigns to encourage the community to make the right choices on the roads to stay safe.
How the charge is calculated
The TAC charge is calculated according to the:
- The type and use of the vehicle (class). This includes, passenger vehicles, goods vehicles, motorcycles, miscellaneous vehicles or special use vehicles (it may also take into account how many seats the vehicle has).
- The postcode where the registered vehicle is usually kept. This determines the risk zone, and this will be either listed as a low, medium or high risk zone. A list of all zone postcode is included in the premium brochure.
- Any eligible discounts. A discount may apply if you are a pensioner, concession card holder or if you are an apprentice under an eligible trade.
In calculating the cost of larger or commercial vehicles such as a bus, consideration will be given to the intended use, seating and carrying capacity.
The Transport Accident Act 1986 provides for TAC Charges to be automatically indexed by inflation (CPI) on 1 July each year.
TAC charge concessions
Pensioners may be eligible for a 50% discount on their TAC charge.
Trade apprentices may be eligible for a 100% discount as part of the Government’s commitment of free registration for apprentices.
Contact VicRoads to see if you are eligible for this discount.
The CPI increase will not be applied on 1 July 2023 to assist Victorians with the cost of living.
This means that the TAC premiums are the same as they were for the 2022/23 financial year except for the apprentice premiums which will be zero for those eligible for free registration.
- TAC premiums that apply from 1 July 2023 PDF, 0.68MB
- TAC premiums that apply from 1 July 2023 DOCX, 0.3MB
There are separate pages for:
- Standard rates (Annual, 6 Months and 3 months)
- Eligible pensioner concession rates (Annual, 6 Months and 3 months)
- Eligible apprentice rates (Annual, 6 Months and 3 months)
Short term registration
From 1 January 2018, all light motor vehicle owners have had the option to register their vehicles for periods of 3, 6 or 12 months.
For further information on short term registration, please refer to the VicRoads' short term registration page
Motorcycle Safety Levy
The Motorcycle Safety Levy has been in place since May 2002. The funds from this Levy go directly to initiatives to improve the safety of riders. These initiatives include on-road and non-road related projects.
The levy is incorporated into the TAC Charge for motorcycles with an engine capacity of 126cc or above, and is passed onto VicRoads to administer the project funding. Currently the levy is $78.10 (inc GST/Ins duty) as it is automatically indexed by inflation (CPI) on 1 July each year.
The levy is paid just once by each motorcycle owner, any additional motorcycles you own will be exempt from the levy.
For further information on the project funded from the levy, please refer to the VicRoads' motorcycle safety levy information page
Unregistered Vehicle Permits
An Unregistered Vehicle Permit (UVP) can be obtained from VicRoads if you need to drive an unregistered vehicle, or a vehicle which is exempt from needing to be registered, on a public road or highway. This may apply when you need to drive an unregistered vehicle directly to a VicRoads office to be inspected and registered, or if you are driving a visiting overseas vehicle that is registered in another country.
The UVP includes a payment for the TAC Charge which provides cover for you against claims for injury or death should you be in a crash.
If you are involved in an accident on a public road in a vehicle that is not registered in Australia or covered by a UVP, the TAC can seek financial recovery of any payments made on behalf of any person injured from the owner and driver.
The TAC is also unable to pay loss of earnings to the owner of a vehicle which is not registered in Australia or covered by the TAC charge, regardless of whether you are the driver or passenger in a crash.
For more information on the Unregistered Vehicle Permits, please refer to the VicRoads website
FAQ about the transport accident charge
What is the difference between VicRoads and the TAC?
The TAC charge is a third party insurance which is used towards supporting those who are injured on our roads and funding accident prevention initiatives including road safety education programs.
VicRoads are responsible for managing and maintaining 25,000km of Victoria’s major connecting roads and roadsides, along with overseeing vehicle registration and licensing. VicRoads are also responsible for Victorian road laws.
The registration and licence fees that VicRoads collect are paid into something called the Government’s Consolidated Fund (GCF). The money in this fund is put back into a range of Government services like road programs, transport, education and health services, which help Victorians each day.
Why doesn't the TAC consider the driving record or skill of the owner?
The registered owner of a vehicle may not be the person using the vehicle. This means that people with bad driving records could simply register their vehicles under the name of their partner or the family member with the best record to pay a reduced TAC charge. It would become unfair for honest people and business vehicles owners who will end up paying even more to cover the revenue lost by providing discounts to people who should not have been entitled.
Rewards for good driving should be given to the person who performs the good driving. Giving rewards or discounts to owners can provide recognition to the wrong person.
Why do I have to pay for all my vehicles when I can only use one at a time?
The amount the TAC pays for treatment and services is calculated per vehicle. There are more vehicles in Victoria than there are licence holders.
If the charge was calculated per licence holder then the charge would be higher for everyone and would disadvantage those with only one vehicle or no vehicle at all.
Why has my TAC charge increased?
The Transport Accident Act 1986 states that TAC charges are to be automatically indexed by the Consumer Price Index (CPI) on 1 July each year.
The following factors can increase your TAC charge:
- The TAC charge being indexed by CPI. This annual increase will cover the rising costs of treatment and benefits paid to TAC clients
- Moving house. If your vehicle is now garaged in a suburb with a postcode in a higher risk zone, your TAC charge will increase
- Purchasing a different type of vehicle
- Upgrading a motorcycle to one with a higher engine capacity
What is the Insurance Duty?
Insurance Duty (formerly called Stamp Duty) is imposed by the State Government and collected by the State Revenue Office. This revenue does not go into the TAC fund. Find out more on the SRO Victoria website.
Why do I have to pay GST and Insurance Duty?
GST and the Insurance Duty are Commonwealth and State Government charges. Refer to the Australian Taxation Office and State Revenue Office for further information.
Why is my big utility cheaper than my small sedan?
A utility is classed as a goods-carrying vehicle. These vehicles are generally used for business purposes so WorkSafe Victoria are responsible for a high proportion of personal injury claims made by the occupants, instead of the TAC. Also, utilities are generally limited to two occupants, whereas a passenger vehicle can carry up to five people, sometimes more.
Why do my neighbours pay less than me?
There are several possible reasons why your charge may be different:
- Your neighbour might live in a different post code which puts them into a different TAC risk zone. For example, Carrum Downs and Skye. Carrum Downs (post code 3201) is listed in the high risk zone, while Skye (post code 3977) is listed in the medium risk zone. The TAC has been using the high, medium and low risk zones since the TAC scheme started in 1986.
- Council re-zoning of postal boundaries may affect the TAC charge. The TAC has no control over council re-zoning
- The size and type of your vehicle might be different to your neighbour's vehicle.
- You or your neighbour may be entitled to a pensioner concession
- One of your vehicles may have been misclassified, contact VicRoads for clarification
What type of vehicles do not need to be registered?
The VicRoads website outlines the types of vehicles that do not need to be registered.
For further information about the TAC charge contact the TAC on 1300 654 329.
Alternatively, email firstname.lastname@example.org