If you’re a business owner who needs a green slip, the greenslips.com.au Calculator helps you compare prices. You need to consider ownership, primary use of vehicle, how far you travel and registration for GST. Find out about green slips for business owners.
Questions for business owners to answer
The best way to compare prices for a business green slip is to use the greenslips.com.au Calculator. It asks for all the information insurers need but some questions are particularly important for business owners:
- Who owns your vehicle?
- How is your vehicle used?
- Are you registered for GST?
- How far do you travel in the vehicle each year?
Who owns your vehicle?
If a company owns your vehicle, then select Company. If you own the vehicle personally, then select Individual. When in doubt, check the registration papers.
How is your vehicle used?
You need to decide whether your vehicle is primarily used for private or business use. For example, you may use it partially for business, such as for rideshare. If use is sometimes private, sometimes business, choose how the vehicle is used most of the time.
Are you registered for GST?
You have to register for GST if your business turns over $75,000 or more. If you are a taxi, limousine or rideshare driver, you have to register for GST, regardless of income.
CTP green slip prices are higher when you claim for GST (also called an input tax credit). State Insurance Regulatory Authority (SIRA) allows insurers to charge a loading on green slip prices to pay for the extra administration for GST.
- The loading applies to any individual or organisation registered for GST.
- It must be the same for all vehicle types geographic (rating) regions and individual risk factors.
- The loading must be 6.5-7.5% of the green slip price without claiming for GST.
If your circumstance changes in respect of GST you have to tell your CTP green slip insurer.
Green slips for taxi and rideshare owners
Green slips for taxi and rideshare owners are different from other businesses.
First, distance travelled is very important for taxi and rideshare. Owners pay premiums based on distance travelled. Second, both taxi and rideshare businesses have to be registered for GST. In each case, their minimum CTP premium is the same as any other passenger vehicle.
Taxis pay fixed or per kilometre price
Taxi operators have two options for their green slip: fixed premium or pay per kilometre.
Fixed premium – Taxi operators pay the full annual premium. This may be a better option if you travel over 107,000 kms per year.
Pay per kilometre – Pay the first instalment when your CTP policy begins. Every 4 months (6 months for country plates), lodge your odometer reading. Taxis pay:
- 5 cents per km in metro areas or
- 3.3 cents per km in the country.
The next instalment will be adjusted based on distance travelled in the previous period. It is capped at 107,000 kms per year.
Rideshare drivers pay per kilometre price
Rideshare drivers pay the same CTP premium as other passenger vehicles. Only when the rideshare driver has a fare-paying passenger, they also pay:
- 10 cents per km or
- 6.6 cents per km if the journey started in a country region.
Green slips for fleets
Green slip prices are cheaper for a fleet than for each individual car in it. Insurers use different factors and weightings to calculate prices and fleet ownership is one of them.
- Some insurers are more eager to deal with fleets than others.
- They may offer incentives to buy other business insurance products, if it includes fleet CTP insurance.
If you’re a fleet owner, you won’t be able to use the greenslips.com.au Calculator to compare prices. You can consult your insurance broker or contact each insurer directly to find the cheapest green slips for your fleet.
Green slips for heavy vehicles
The greenslips.com.au Calculator doesn’t work for any vehicle over 4.5 GVM. Like fleet owners, you need to contact the insurers directly for your green slip.
Other business owners can compare prices for their green slip here.
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