Is your car on the ACT's hit list for higher taxes?

Not only are Canberrans going to pay more in rates, they will also be paying more to drive their car if it's not an electric vehicle.

The ACT government is increasing the motor vehicle duty for both new and used cars deemed to be "a polluting vehicle", in the words of Treasurer Chris Steel.

The extra charges will start from February 1, 2027.

Motor vehicle duty is a tax you pay when you register a new vehicle in the ACT or transfer the rego for a used vehicle.

And, basically, the greater the emissions, the greater the duty you pay. And pay.

Higher charges are coming in early 2027 for everyone except those people who drive the most efficient EV or hybrid.

It pays to drive an EV in the ACT under Chris Steel. But what about the people who can't afford one or like petrol cars? Pictures by Gary Ramage, Keegan Carroll

It pays to drive an EV in the ACT. But what about the people who can't afford one or like petrol cars? Picture by Gary Ramage

The 2026-27 budget outlook put it this way: "The government will continue to incentivise the uptake of lower emissions vehicles with an increase to motor vehicle duty taxes for categories B, C, D or unrated".

Mr Steel also said this in the wake of handing down the budget last week:

"So we've made measures to cut taxes, but we've also asked certain members of the community to pay a little bit more, and that includes people who are purchasing a polluting vehicle.

"They will be asked to pay a little bit more in stamp duty for the cost of purchasing a vehicle. Whilst we've kept registration fees as low as we can and stamp duty as low as we can for those who are purchasing zero or low or polluting vehicles, which will mean that they still pay less than NSW."

So, what does that all mean?

What's a B, C, D or unrated vehicle and how much extra are their owners going to have to pay?

And Mr Steel may say it's paying a "little bit more". Others may say it's quite a lot more.

Owners of B, C, D or non-rated vehicles in the ACT will pay more in motor vehicle duty from early next year. Picture: AMC. Information: ACT government

According to the ACT government, "B" vehicles are "relatively efficient vehicles, including some newer petrol SUVs and utes, and some high-emitting hybrids".

"C" vehicles are "larger SUVs, older petrol/diesel vehicles, midrange vehicles and less efficient engines".

"D" vehicles are "large utes, V6/V8 vehicles, performance cars, heavy petrol/diesel vehicles, least efficient vehicles".

And "unrated" vehicles are "new vehicles where emissions can't be determined (eg some imports, modified vehicles, certain heavy vehicles)" and "used internal combustion engine vehicles".

The A, AA and AAA vehicles that will escape the higher charges include "electric vehicles, plugin hybrids, low-emissions hybrids, and very fuel-efficient petrol cars".

Now, the amount of duty you pay is a charge per $100 of the dutiable value of the car, which is the purchase price or market price, whatever is higher.

So, for instance, the owner of an A, AA or AAA electric vehicle over $45,000 will be paying duty of between $4 and $4.81 per $100 of dutiable value.

For everyone else driving a "polluting vehicle" over $45,000, they will pay duty of between $5.59 and $8 per $100 of dutiable value.

So, say you have a AAA-rated EV worth $50,000, you'll pay $2000 in motor vehicle duty.

Say you have a D-category V8 ute worth $50,000, you'll pay $4000 in motor vehicle duty. Double what your EV-driving neighbour pays.

But even the hybrid drivers that don't make the A, AA or AAA class will be paying substantially more.

Say you have a B-category hybrid worth $50,000, you'll be paying duty of $2795, still $795 more than an A-class hybrid driver.

(If you want to find out out what your car will cost to get on the ACT roads, have a look at this motor vehicle duty calculator at Access Canberra).

Stavros Yallouridis, chief executive officer of the Motor Trades Association of the ACT, is not happy with the changes.

He said increasing registrations for internal combustion engine vehicles was "short-sighted and unnecessary".

"The reality is that many Canberrans for many reasons cannot afford to purchase an electric vehicle at this time or are unable to purchase one due to a lack of charging infrastructure," he said.

"To announce additional costs for registration on (internal combustion engine) vehicles only hampers the market for electric vehicle sales.

"The market will continue to evolve as prices of electric vehicles continue to fall from increasing competition and investment in charging infrastructure, it will not evolve through heavy-handed government charges."

Have to agree with that. Not sure I'll be upgrading from my 2010 Toyota Rav 4 worth $3000 for a $50,000 EV any time soon.

Especially when I'll be paying more for driving my ever-faithful 16-year-old Toyota.