As South Australians brace for a spike in state fees for services like driver’s licenses, traffic fines, and bus fares starting July 1, there is some relief in sight with reductions in compulsory third-party (CTP) insurance costs that are expected to cushion the impact for vehicle owners.

Starting next month, fees for a range of state services will increase by an average of 3%. This includes a rise in the cost of a five-year driver’s license from $255 to $265 and a 10-year renewal from $510 to $530.

Additionally, the fine for driving an unregistered vehicle will increase from $457 to $471, and the penalty for speeding less than 10km/h will rise to $202 from $196. Bus fares during peak travel times are also set to increase from $4.25 to $4.40 per trip.

Despite these increases, SA Treasurer Stephen Mulligan highlighted that the rise in fees is still below the annual inflation rate of 4.3% recorded in Adelaide.

More importantly, Mulligan noted that lower costs for CTP insurance would help offset these rising vehicle-related expenses. Metro drivers in South Australia will see their CTP costs drop to $260.71, he said, which is down $16.13 from last year.

Rural drivers will also benefit, with the lowest CTP rate dropping to $179.39 from approximately $189. This decrease will lead to an overall reduction in vehicle registration fees, with a 12-month registration for a four-cylinder car decreasing to $657.10 from $663.93, saving drivers almost $7. Those with six-cylinder cars will save $1.83.

“We realise that everyone is watching every expense in their household budget at the moment, and we hope that today’s news when it comes to vehicle registration bills will be welcomed by motorists,” Mulligan said.