Labor’s Car Tax

At a time when many Western Australians are doing it tough—with rising rents, soaring power bills and the cost of living biting hard—the Cook Labor Government has made a choice.

A choice to hit the hip pockets of hardworking families.

A choice that now amounts to a tax on motorists.

Under this year’s State Budget, drivers will now pay $504.77.

That’s a 2.7% increase.

And the Cook Labor Government want you to believe that paying $504.77 for your compulsory motor vehicle insurance is perfectly ok because apparently it “compares favourably” with other states.

But let’s ask the question that needs to be asked.

What difference does it make what drivers in Sydney or Melbourne are paying? 

What really matters is the financial impact for all of us, right here in WA.

For WA families already stretched thin, ensuring we are on par with other states and territories is cold comfort.

And here’s the cruel blow: this hike is unjustified and unnecessary.

The Insurance Commission of Western Australia (ICWA) is a government agency that manages investments and insurance services on behalf of WA motorists and other government agencies.

Part of what they are responsible for is operating WA’s motor injury insurance scheme. Often called Compulsory Third Party Insurance. 

Put simply, through the motor injury insurance scheme, ICWA helps protect Western Australians financially after car crashes. They also make sure they have enough money set aside to cover those costs long-term.

Let’s give credit where credit is due: they play an important role.

But let’s now also be clear: ICWA is not struggling to meet its costs. 

They are not financially struggling to help car crash victims. 

Far from it. 

Last year alone, ICWA recorded a net profit of nearly $462 million.

This year it is anticipated to be another $275 million. 

And what’s forecast for next year? Over $190 million in profit. 

That’s a staggering $927 million in profits across just three years.

In fact, if I was a betting man, I’d wager that this figure will crash through the $1 billion mark because they have a history of understating their forecasts.

And ICWA’s total assets? A jaw-dropping $8.1 billion.

So, let’s call this for what it is: a money grab.

If the Cook Labor Government was truly serious about helping Western Australians, this insurance hike would not be happening.

When a government agency like ICWA is flush with cash, there is no good reason why motorists should be asked to pay more.

If ever there was a time for a government to ease the pressure on households, this was it. 

But instead, the Cook Labor Government have made a choice. 

A choice at your expense.

A choice for every single West Aussie driver to pay more.

This isn’t about economic necessity. It’s about political priorities.

WA deserves better than a government that brags about “record surpluses” while unjustifiably driving up fees for essential services. 

As the Opposition, we have been holding the Cook Labor Government to account all week in Parliament while debating the State Budget.

A responsible government would put the needs of WA households ahead of racetracks and rugby teams. 

Because Western Australians who are struggling with the cost of living deserve relief—not an increase in Labor’s driving tax.