New data reveals that 48 per cent of Sydney motorists are now paying $500 or less for their CTP Green Slip, compared to none under the old scheme. Similarly in country areas, there are now more than 60 per cent of motorists paying less than $400 for their Green Slip, compared to just 25 per cent under the old scheme.
Minister for Finance, Services and Property Victor Dominello said before the reform the state-wide average premium was $652 and not one motorist in Sydney was paying less than $500 for their green slip premium.
“Since the reform the average premium has dropped by over $130 and nearly half of Sydney drivers are now paying less than $500 for their green slip,” Mr Dominello said.
“The NSW Government is determined to drive down the cost of CTP and these figures prove that we have delivered on our promise.”
The NSW Council of Social Service identified CTP premiums as a significant cost of living pressure for motorists on low incomes, and in its submission of June 2016, they supported the need for reform.
In the old scheme the average premium was $652. This represents 41 per centof an average week’s pay packet as at May 2018. With the average premium now at $518 (a $130 reduction), this represents less than 33 per centof a current week’s pay.
“Injured road users are also getting their benefits paid faster than ever before. Under the old scheme just 6 per cent of benefits were paid within one year of the date of claim. In the new statutory benefits scheme around 55 per cent of benefits will be paid within one year once the scheme is at full maturity,” Mr Dominello said.
The Government has also introduced an insurance profit clawback mechanism. This will ensure insurers are held to reasonable profit margins, unlike Labor’s 1999 scheme where insurers averaged over 30 per cent profits for the first four years of the new scheme.
CTP reform is one of a raft of NSW Government measures helping to ease cost of living pressures for households. The NSW Government has also introduced the FuelCheck app, cheaper hospital car parking, Active Kids vouchers, and energy rebates.
Comparison of premiums – 1999 scheme v 2017 scheme.
|Old Scheme||Actuals for 2017 scheme (based on premium data up to 9 September 2018)|
|% of vehicle owners paying premium of $500 or less||Class 1 Sydney|
|% of country vehicle owners paying premium of $400 or less||Country, all classes||25%||63%|
|% of vehicle owners paying premium of $700 or more||Class 1 Sydney|