The car rental industry has a number of different surcharges and fees that contribute to the rate you are quoted.
The breakdown of this rate and how it is calculated differs amongst each of the car rental companies (i.e. Hertz, Thrifty, Avis, Budget, Europcar, Enterprise) however if you want to get a brief understanding of the Total Rental Costs, here is a quick summary.
Rental Cost Breakdown
Vehicle Registration Recovery Fee
Premium Location Surcharge
The Base Rate
This is the cost of your car before any taxes or surcharges have been added.
If you request optional extras (i.e. baby seats) these will incur an extra charge.
Vehicle Registration Recovery Fee (VRRF)
A surcharge that reimburses the car rental company for any registration and compulsory insurance charges imposed by the States and Territories of Australia.
Premium Location Surcharge (PLS)
A surcharge ranging from 0-30%, which is charged when you rent a car from an airport or some city and remote locations. The surcharge applies to all rental costs, including the cost to hire the car itself.
Goods and Services Tax (GST)
A tax of 10% on goods and services in Australia.
A fee applied to the Total Cost to cover the State’s Contract Stamp Duty costs.
The surcharges (otherwise known as VRRF, PLS, and Admin Fees in the industry) are added to your base rate and are charged daily. These surcharges vary considerably depending on the location you are picking the car up from, the supplier and the age of the driver/s. Moreover, as per the Terms and Conditions of your Rental Agreement, the same percentages are applied to all extras that you request.