The motor vehicle tax for private caravan owners will be reduced by 40 per cent from November 1, the state government announced.

The measure will be included in the 2018 state budget.

Caravan enthusiasts have welcomed the news.

A couple on a caravan holiday to visit family in Port Macquarie said the price reduction would be wonderful.

The Sydneysiders believe caravan holidays are a great way of life.

Meanwhile, Port Macquarie resident Tony James believes the caravan registration price cut will either encourage more people to get out there in caravans or be in the position to afford a different sized van.

“It’s pretty good,” he said about the price reduction.

Port Macquarie MP Leslie Williams said the motor vehicle tax for private caravan owners would be reduced by 40 per cent from November 1.

“The NSW Government recognised the need to reduce costs associated with these popular vehicles and this reduction in motor vehicle tax will allow people to spend their money on the things they love - including camping and caravanning around NSW,” she said.

The change will apply to towed caravans and purpose-built camper trailers weighing up to 4.5 tonnes.

Light vehicles including caravans attract a motor vehicle tax based on the vehicle’s weight.

Towed caravans and purpose-built camper trailers that are privately registered will be eligible for the 40 per cent reduction in motor vehicle tax. 

Customers will still be required to pay the standard NSW registration fees including the annual fee of $65.