Tuesday's Queensland budget will cut the registration and traffic improvement fee for all light vehicles by 20%, but will not apply to the cost of compulsory third party insurance (CTP).

Renewal notices issued from 5 August will reflect the new prices, while the changes will kick in for a year starting 16 September.

The Government say it will reduce the 12 month registration for a private use four cylinder vehicle by almost $85.

Including CTP and various add-on fees, 12 month registration for a four cylinder vehicle currently costs $793, one of the more expensive states in Australia.

The state government's follows a freeze on indexation to registration costs in December last year.

"Twenty per cent off rego builds on $1,000 energy rebates going to every Queensland household and 50 cent public transport [fees]," the Premier said.

The budget will also significantly increase the threshold on stamp duty for first home buyers, which could be worth up to $17,350 in savings.

How much could you save?

The cuts apply to all light vehicle registration and traffic improvement fees, including the lowered costs for those with a concession or seniors card.

Using the registration fee guide from the Queensland Department of Transport, this is how much the changes could be worth to you, depending on your car's engine.

1-3 cylinders, electric or steam

Current cost Cost from 16 September Savings
Vehicle registration $283.55 $226.84 $56.71
Traffic improvement fee $62.90 $50.32 $12.58
CTP $369.60 $369.60 $0
Total $716.05 $646.76 $69.29

4 cylinder

Current cost Cost from 16 September Savings
Vehicle registration $360.60 $288.48 $72.12
Traffic improvement fee $62.90 $50.32 $12.58
CTP $369.60 $369.60 $0.00
Total $793.10 $708.40 $84.70

5/6 cylinder

Current cost Cost from 16 September Savings
Vehicle registration $570.95 $456.76 $114.19
Traffic improvement fee $62.90 $50.32 $12.58
CTP $369.60 $369.60 $0.00
Total $1,003.45 $876.68 $126.77

7/8 cylinder

Current cost Cost from 16 September Savings
Vehicle registration $799.60 $639.68 $159.92
Traffic improvement fee $62.90 $50.32 $12.58
CTP $369.60 $369.60 $0.00
Total $1,232.10 $1,059.60 $172.50

9-12 cylinder

Current cost Cost from 16 September Savings
Vehicle registration $937.80 $750.24 $187.56
Traffic improvement fee $62.90 $50.32 $12.58
CTP $369.60 $369.60 $0.00
Total $1,370.30 $1,170.16 $200.14

How much can concession card holders save?

The changes will also apply for those who hold concession or senior cards, who already enjoy reduced registration fees.

This is how roughly much these costs could be reduced, for concession cards issued after 1 July 1994:

1-3 cylinders, electric or steam

Current cost Cost from 16 September Savings
Vehicle registration $141.80 $113.44 $28.36
Traffic improvement fee $62.90 $50.32 $12.58
CTP $369.60 $369.60 $0.00
Total $574.30 $533.36 $40.94

4 cylinder

Current cost Cost from 16 September Savings
Vehicle registration $180.30 $144.24 $36.06
Traffic improvement fee $62.90 $50.32 $12.58
CTP $369.60 $369.60 $0.00
Total $612.80 $564.16 $48.64

5/6 cylinder

Current cost Cost from 16 September Savings
Vehicle registration $285.50 $228.40 $57.10
Traffic improvement fee $62.90 $50.32 $12.58
CTP $369.60 $369.60 $0.00
Total $718.00 $648.32 $69.68

7/8 cylinder

Current cost Cost from 16 September Savings
Vehicle registration $399.80 $319.84 $79.96
Traffic improvement fee $62.90 $50.32 $12.58
CTP $369.60 $369.6 $0.00
Total $832.30 739.76 $92.54

Picture by Zac Edmonds on Unsplash