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Australia’S Legal System вЂ" Sources Of Law Affecting Motorists

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Australia’s Legal System вЂ" Sources of Law Affecting Motorists

There are vast issues involved in purchasing a new car. These costs of purchasing and operating a motor vehicle can be separated into fixed costs and running costs.

Fixed costs signify the standing and purchasing costs of a car. These costs are earned through ownership of the vehicle and are expressed as dollars per week.

Fixed costs do not directly depend on how much the vehicle is used and are:

• Registration

• Insurance

• Finance costs

• Depreciation

Running costs are those costs, which differ according to the use of the vehicle and include:

• Fuel

• Maintenance

• Tyres


Registration is the initial recording of a vehicle on the Motor Vehicle Register, and the issuing of registration plates. Vehicles can only be registered after they have been checked to ensure they are safe to be on the road.

The average cost of registering a vehicle (per annum) includes:

• Vehicle licensing fee

• Compulsory third party injury insurance premium of $227.50

• A recording fee of $9.60

• GST on third party insurance of $22.75

• Stamp duty on third party insurance of $25.03


Vehicle insurance (or auto insurance, car insurance, motor insurance) is insurance purchased for cars, trucks, and other vehicles. Its primary use is to provide protection against losses incurred as a result of traffic accidents.

Insurance costs (per annum) have been determined using RACWA (Royal Automobile Club of Western Australia) comprehensive car insurance premiums and the following parameters:

• No claim bonus of 55% with bonus protection

• Private Use

• Age 35 years

• Garaged in Morley 6062

• Loan Finance

• Club Membership is basic RACWA Roadside Care ($64 per annum).


Depreciation is calculated as the difference between the on road cost of a new car, and the trade in value after 5 years and 75,000 km.

The on-road cost of the new vehicle is estimated as follows:

• List price of new vehicle

• The cost of air conditioning is included where it is not standard equipment

• A dealer delivery fee of $995.00.

• Vehicle licensing costs.

• Stamp duty


Today’s average fuel prices for Australia:

State Diesel ULP LPG

Australian Capital Territory

$1.438 $1.349 $0.539

New South Wales

$1.417 $1.338 $0.559

Northern Territory

$1.446 $1.419 $0.754


$1.320 $1.243 $0.555

South Australia



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