Posted November 07, 2018 07:16:06 The Australian Government is proposing to slash the price of rental car insurance from $30,000 to $15,000, as part of a wider policy change aimed at improving affordability.
Key points:The Government is also proposing to introduce a $20 minimum income cap for rentersThe changes will apply to car rental companies, including car companies offering self-driving servicesThe changes would apply to rental car companies, such as car companies selling self-drive vehicles, as well as companies offering services such as driving a vehicle, or leasing a vehicleThe changes are expected to be announced later this month and come as part the Government’s national drive to end the “baby travel” system, where young people travel for a short period of time for a fee.
The policy change is expected to affect up to 3 million Australians, including many parents who have to travel to see their newborns.
Under the changes, which will apply across the industry, rental companies will be required to offer a standard “baby-travel” policy.
That means rental companies offering a “baby” policy will no longer be able to charge a higher rate for people travelling for a longer period of the same duration.
The new policy will also apply to the Australian Taxation Office (ATO), who will be able use the information it collects on “baby tourism” to assess the tax bill of people travelling in self-driven vehicles.
The ATO has been investigating how the “Baby Travel” scheme was being used to generate revenue for its own business.
In a statement, the ATO said it would review whether to apply the new policy to any companies offering “baby transport” services.
The changes come as the Government prepares to announce its Budget later this week.
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