CTP Green Slip Reforms - What it means for small businesses

By Alexandra Cain on 18 January 2018
Men with Apples Business Motoring
Men with Apples Business Motoring

NSW small businesses will start receiving refunds on their current compulsory third party green slip premiums from now.

The refunds are part of a revamp of the existing CTP green slip scheme, through which the cost to obtain this insurance has been cut.

A CTP green slip provides insurance cover to people involved in a motor vehicle accident. All vehicles in NSW are required to hold one.

Under the shake-up of the existing scheme, about 100,000 businesses will receive a refund, sent to them directly from January 2018.

The NSW state government has confirmed $300 million will be returned as part of the scheme. A total of $66 million will go back to businesses, including $37 million that will be returned to enterprises that own light goods vehicles. It estimates taxi drivers in Sydney may get back up to $2,100 per vehicle.

NSW minister for finance, services and property Victor Dominello said the news was good for NSW. “Sydney drivers, who pay the highest green slip prices, will see the largest refunds, at an average of $70 and country drivers will be $30 better off,” he said.

Alongside the refund, business owners should also find extra cash in their pocket next time they go to pay for their green slip.

The NSW government has said average green slip prices for Sydney drivers will be $553 next year, down from the average price of $710 paid this year.

Premiums for Sydney taxi owners will drop from $8,336 to $4,947 on average next year.

A new safety net is also being introduced under the scheme that will mean all injured road users can apply for benefits if they have lost income as a result of the accident – regardless of who was at fault.

The state government has said this scheme will also cover medical expenses and care for injured parties for up to six months. People who sustain long-term injuries may also receive a lump-sum payout.

The NRMA supports the NSW government’s reforms to the green slip regime given the initiative puts funds back into the pockets of motorists and small businesses that need it.

NRMA business Membership provides support to over 28,000 businesses that manage vehicle fleets. NRMA spokesperson Peter Khoury said the reforms were a welcome boost to small business coffers at the start of the year.

Motorists and fleet-running businesses will begin to receive much-needed relief from ever-rising transport costs through a lower cost CTP green slip, and this could not have come at a better time,

Peter Khoury said.

“From March we are also encouraging all our members to take the time to provide Service NSW with their bank details so they receive their refund as quickly as possible. The CTP green slip changes are the third recent reform that will deliver welcome relief for motorists and small businesses struggling with the cost of transport in NSW,” he said.

According to figures from the NRMA, the changes to the green slip regime, combined with free registration for toll users and real-time data for fuel prices from the NRMA app mean Sydney families could save more than $1,000 a year on transport costs. Cost savings for businesses are likely to be substantially higher.

But it’s still important for vehicle owners to seek quotes from a number of providers to ensure they get the best deal on their policy.

“Reducing the cost of transport for our Members and the community will continue to be one of our top priorities in 2018,” said Khoury.

The NRMA also applauded measures to assist people injured in crashes, regardless of fault, to access much-needed benefits and financial support.

The NSW Taxi Council has also welcomed the revamped green slip regime. CEO Martin Rogers said, "while this process has taken some time to get to this point, the CTP reforms are a very important step towards a more level playing field, and competitor neutrality.

“For too long now there have been inequities in the point-to-point transport sector, and the CTP reforms are way to remove these inequities.”

The NSW Taxi Council wants the new CTP scheme to be supported by a stricter enforcement regime for commercial passenger vehicles that don’t comply with rules and regulations.

"It is absolutely critical that any service provider wishing to provide a passenger service must pay their way and have the necessary insurances in doing so," Rogers said.

The NSW Taxi Council commended the State Insurance Regulatory Authority and Victor Dominello for consulting with the NSW Taxi Council during the review process.

Adam Joy, CEO of the Australian Lottery and Newsagents' Association (ALNA), also welcomed the move. Its members rely on vehicle fleets for newspaper deliveries

“The cost of doing business is increasing across the board, including wages, energy, occupancy costs and even fuel. So this small relief will be welcomed by small businesses as they start the new year's trade, particularly those that rely on multiple vehicles for their operations," said Joy.

Small businesses are hoping further government reforms to reduce red tape will be announced this year to help drive their success.

To understand more about these reforms visit the NSW Government website.

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