The outer area car registration concession will return for Kangaroo Island residents and those in the outback.
From July 1, a 50 per cent concession will be available for eligible residents, after the SA Labor government reversed the former government's decision to axe the initiative.
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Transport and Infrastructure Minister Tom Koutsantonis said the decision to remove the concession made no sense.
"It came at a time when South Australians are facing more cost-of-living pressures - not less," he said.
"The concession acknowledges the additional running costs faced by vehicle owners living and using vehicles in these areas."
The Outer Areas Registration Concession is available for residents of Kangaroo Island, Coober Pedy, Roxby Downs and all other parts of SA that are not within a municipality, a district council area, or Iron Knob.
It provides a 50 per cent reduction in the registration fee component for eligible vehicles less than or equal to 4.5 tonne gross mass (light vehicles) or a 40pc reduction in registration fee component for eligible vehicles over 4.5 tonne gross mass (heavy vehicles).
This concession applies to the registration fee component and does not discount other components of car registration fees, such as compulsory third party insurance or the emergency service levy.
Registered owners who reside in these outer areas will be eligible to receive the concession provided the vehicle is to be used wholly or mainly in outer areas.
The concession is not applicable to heavy vehicles that are Rigid Truck types 1 and 2 or Special Purpose Vehicles.
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Member for Mawson Leon Bignell said they were pleased to be able to deliver on this commitment.
"Kangaroo Island locals were left stunned when this concession was removed, especially as day-to-day costs are getting more expensive," he said.
"The registration concession will deliver motoring and freight savings to individuals, farmers and businesses with one freight company set to save $70,000 on annual registration bills."
Applications for the Outer Areas Registration Concession can be made from July 1 at service.sa.gov.au.
