Are you a business owner who needs a green slip for your vehicle? Consider who owns it, primary use of your vehicle, how far you travel and GST. Our green slip calculator compares prices for business owners.
What insurer questions are important for business owners?
Some insurer questions are particularly important for business owners:
- Who owns your vehicle? – an individual or company
- How is your vehicle used? – mostly for business or personal
- Are you registered for GST? – check whether you need to be
- How far do you travel in the vehicle each year? – check your odometer.
Who owns your vehicle?
If a company owns your vehicle, select Company. If you own the vehicle personally, then select Individual. When in doubt, check your registration papers.
How is your vehicle used?
Decide whether your vehicle is mainly used for private or business use. For example, you may use it partially for business, such as rideshare. If use is mixed, choose how you use your vehicle most of the time.
Are you registered for GST?
You must register for GST if:
- Your business turns over $75,000 or more, or
- You drive a taxi, limousine or rideshare, regardless of income.
Greenslip prices are higher when you claim for GST (also called an input tax credit). Insurers can charge a loading on green slip prices to pay for the extra administration involved with GST.
- The loading applies to any individual or organisation registered for GST.
- It must be the same for vehicle types, geographic (rating) regions and individual risk factors.
- The loading must be 6.5-7.5% of the usual green slip price.
Always tell your green slip insurer if your circumstance changes in respect of GST.
Green slips for taxi and rideshare owners
Green slips for taxi and rideshare owners are different from other businesses:
- Distance travelled is important because you pay extra premium based on distance travelled.
- Taxi and rideshare businesses have to register for GST regardless of turnover. However, their minimum green slip premium is the same as other passenger vehicles.
How to pay taxi green slips
Taxi operators have 2 ways to pay for their green slip: fixed premium or pay per kilometre.
Fixed premium – Taxi operators pay the full annual premium. You may prefer this if you travel over 107,000 kms per year.
Pay per kilometre – Pay the first instalment when your policy begins. Every 4 months (6 months for country plates), lodge your odometer reading. Taxis pay:
- 5 cents per km
- 3.3 cents per km in the country.
Your next instalment will be adjusted based on distance travelled in the previous period.
It is capped at 107,000 kms per year.
How to pay rideshare green slips
Rideshare drivers pay the same premium as other passenger vehicles. Only when the rideshare driver has a fare-paying passenger, they also pay:
- 10 cents per km, or
- 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.
- Some insurers are more eager to deal with fleets than others.
- They may offer incentives to buy other business insurance products, if it includes a fleet green slip.
Consult your insurance broker or contact each insurer directly to find the cheapest green slips for your fleet.
Green slips for heavy vehicles
Like fleet owners, you need to contact the insurers directly for your green slip.
Other business owners can compare prices for their green slip.
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