Questions and answers about the transport accident charge

Q. Why doesn't the TAC consider the driving record or skill of the owner?
A. 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.

Q. 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.

Q. 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

Q. What is the insurance duty?
Insurance duty is imposed by the State Government and collected by the State Revenue Office. This revenue does not go into the TAC fund. See also:

Q. Why do I have to pay GST and Stamp Duty?
GST and Stamp Duty are Commonwealth and State Government charges. Refer to the Australian Taxation Office and State Revenue Office for further information.

Q. 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.

Q. 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

Q. 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.

Q. What is the difference between VicRoads and the TAC?

A. 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.

For further information about the TAC charge contact the TAC on 1300 654 329.

Alternatively, email