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    Cost Breakdown for Car Rental Prices in Australia

    Cost breakdown of car hire prices in Australia banner

    There are a number of different surcharges and fees that contribute to the car rental rate you see on your screen. The cost breakdown is different for each supplier, but there are many charges they all have in common. If you want to understand how the car rental price structure works, here is a guide.

    What are the charges?

    The additional taxes and surcharges that are added to your car rental rate depend on a number of things. For example, the location you are picking up the car from, the company you are hiring from and the age of the driver all affect the price. These charges are usually charged at a daily rate. 

    Even if you choose to add extras to your booking, this should not alter the base rate. Although the breakdown may be different for each of our suppliers, here is a quick overview of some of the charges that contribute to the price.

    • The base rate is the basic cost of your rental car before any relevant taxes and surcharges have been added.
    • GST (Australian Goods and Services tax applied to products sold domestically)
    • Premium location fee (applies to locations such as airports). This fee is charged as a percentage of the total rate, so any extras requested may affect the price. 
    • Vehicle Registration Recovery is a charge that reimburses the car rental company for any registration and compulsory insurance charges imposed by the states and territories of Australia.
    • Age surcharge (applied to drivers who are under 25)
    • Administration Recovery is a charge for all administrative costs associated with your rental.
    Premium Location Fees, Admin Fees & GST are included in your total cost, however as per the terms and conditions of rental, the same percentages are applied to all extras that you request. The percentage changed may be different depending on the supplier and location you are hiring from. 

     For example:

    A 23-year-old driver hires a car from Melbourne Airport for two days . . .

    The total cost of the rental car is $231.74. The cost breakdown that makes up this rate is:
    Base Rate: $114.16
    Taxes: $21.08
    Location Fee: $47.45
    Administration Recovery: $5.05
    Vehicle Registration Recovery: $14.00
    Age Fee: $30.00

    Read more about car rental in Australia: