What is stamp duty?
So, what is stamp duty on a car? Vehicle stamp duty goes by a few different names but it is essentially a tax levied by a state or territory government on the sale and ownership transferral of a vehicle.
According to the NSW Government: “Stamp duty is charged when registration is issued to a different person or corporation. The tax is collected by Transport for NSW on behalf of Revenue NSW.”
What purpose does it serve? It’s a tax so – hopefully – it goes towards providing services and maintaining and improving infrastructure in your state.
How does it work? Stamp duty is charged when registration is issued to a different person or corporation, i.e stamp duty on car transfer, so any time a vehicle changes hands, in ownership terms.
Why might you have to pay stamp duty on a car? When you buy a new or used vehicle you may be required to pay stamp duty costs when you transfer the vehicle into your name. It’s essentially government charges when buying a car.
How much is stamp duty on a car? How can you estimate how much stamp duty you might have to pay? Stamp duty on a car varies depending on the value of the vehicle. Stamp duty on cars (new) and stamp duty on used cars may vary from state to state.
How duty is calculated: Your vehicle stamp duty depends on how much your vehicle is worth, and whether it's a passenger vehicle, non-passenger vehicle or heavy vehicle.
According to the NSW Government: “For new vehicles, the duty is calculated on the amount you paid for the vehicle, including GST. For used vehicles, the duty is calculated on the sale price or market value, whichever is higher."
“Stamp duty is calculated at $3.00 per $100, or part thereof, of the vehicle's value. For passenger vehicles valued over $45,000 with seating for up to nine occupants, the rate of stamp duty is $1350 plus $5.00 per $100, or part thereof, of the vehicle's value over $45,000.”
To calculate stamp duty, you need the vehicle's market value or how much you paid for it (whichever is higher), and then you enter that figure into the car stamp duty calculator on the website of the state authority that applies to you and this vehicle.
For example, the stamp duty payable on a NSW-registered passenger vehicle with a sale price of $50,000 is $1600, according to the stamp duty calculator on the NSW Government website.
In WA, Driver and Vehicle Services is required by the Duties Act 2008 to collect vehicle licence duty (aka vehicle stamp duty) when a vehicle is licensed or its licence is transferred.
Use RevenueWA’s Vehicle Duty Calculator to find out how much vehicle licence duty is payable when you licence or transfer a vehicle in Western Australia.
For reference, the vehicle licence duty payable on a WA-registered ‘standard’ vehicle with Dutiable Value* of $50,000 is $3250. (* The vehicle’s total purchase price or market value, at registration [whichever is greater], as described by RevenueWA.)
In QLD, vehicle registration duty (aka vehicle stamp duty) may be estimated via the Queensland Government’s website-based calculator.
For example, the vehicle registration duty payable on a Qld-registered light/passenger vehicle (with one to four cylinders) and a sale price of $50,000 is $1500.
In Victoria, motor vehicle duty (aka vehicle stamp duty) may be calculated via the website calculator.
For example, the motor vehicle duty payable on a Vic-registered passenger car and dutiable value of $50,000 is $2100.
In South Australia, “the amount of stamp duty you need to pay varies depending on the purchase price or value of the vehicle; and if the vehicle is classified commercial or non-commercial,” Revenue SA states, “A commercial vehicle includes vehicles such as utes, panel vans, vans and heavy vehicles. All other vehicles are classified as non-commercial.”
Vehicle stamp duty may be calculated via the website calculator. For reference, the vehicle stamp duty payable on a $50,000 SA-registered non-commercial vehicle is $1940.
In the Northern Territory, motor vehicle registration stamp duty may be calculated via the website calculator. In the Territory, stamp duty is calculated on the dutiable value of the vehicle.
“In the case of an 'arm's length' transaction, the dutiable value is the sale price of the vehicle including accessories and on road costs.
“An arm's length transaction is a deal between a buyer and a seller that have no business connections such as a licenced motor vehicle dealer and a member of the public.
“If the buyer has negotiated a discount such as a trade or fleet discount or the vehicle is not subject to GST, the dutiable value is the negotiated price.
“In any other case, the dutiable value is whichever is greater: the vehicle's market value including accessories at the date of the transaction; the vehicle's market value including accessories at the date of transfer.”
For reference, the motor vehicle registration stamp duty payable on an NT-registered passenger car with a dutiable value of $50,000 is $1500.
In Tasmania, motor vehicle transfer duty may be calculated via the website calculator.
For reference, the motor vehicle transfer duty payable on a Tasmania-registered passenger car with “a market value or consideration ($) paid, whichever is the greater” of $50,000 is $2000.
Note: any of the fees cited in this feature may have changed between the time of writing and when you actually read it so, as always, check with the relevant authorities for up-to-date fees, conditions and more.
Is stamp duty GST free? There is no GST applied to the vehicle stamp duty itself, but the vehicle stamp duty you ultimately pay is a percentage of the vehicle price, inclusive of GST.
When is stamp duty payable? When the car is sold and ownership is transferred.
How are cars grouped into categories for stamp duty? Cars may be grouped as standard (aka passenger), non-passenger or heavy vehicle.
What is the estimated stamp duty for each of these categories? Estimated stamp duty may be three percent of the sale price or dutiable value, but it depends on the state or territory in which you reside or are undertaking the transaction.
How can you get out of paying stamp duty? What are the payment exemptions? How can you lower the cost of stamp duty? Can you do it at all?
In NSW, these scenarios (below, as listed by Revenue NSW) constitute exemptions from the payment of stamp duty on a vehicle:
New and used full battery electric vehicles (BEVs) and hydrogen fuel cell electric light vehicles (FCEVs) under 4.5 tonne gross vehicle mass (including motorcycles) with a dutiable value up to and including $78,000 registered for the first time on or after 01/09/2021.
A caravan, meaning it’s a trailer that people can live in when travelling.
A vehicle left to you in a will.
A vehicle transferring to NSW registration from the Federal Interstate Registration Scheme (FIRS).
A vehicle purchased by an eligible war veteran.
A vehicle registered in your name in another state or territory, on which you’ve already paid duty.
A vehicle was awarded as part of a divorce settlement, or on the break-up of a de facto and domestic relationship. (You’ll also be exempt from a transfer fee.)
Do you pay stamp duty on a caravan?
Not in NSW or Queensland, if you’re registering or transferring registration on a caravan or camper trailer.
In some states, such as Victoria and the Northern Territory, you have to pay a transfer tax for caravans. Check with the relevant authorities for up-to-date fees, conditions and more.
In WA, a caravan (defined as “a trailer [including a camper trailer] permanently fitted for human habitation in the course of a journey”) is exempt from the payment of Vehicle Licence Duty, but a vehicle licence transfer fee applies. And so it goes, the shiny bums sting you for cash at every opportunity.
This material has been prepared for information purposes only. It should not be taken as constituting professional advice and you should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances.
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