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.