Motor vehicle and car stamp duty explained

Car stamp duty is defined and calculated by state and territory governments around Australia, so you may know it by a slightly different name depending on where you live. When you see terms like motor vehicle duty, vehicle registration duty and motor vehicle stamp duty, they all refer to the same thing.

See if you may be exempt from paying stamp duty

The current motor vehicle duty rates in NSW are shown in the table below:

Queensland

The duty payable varies depending on the value of the vehicle and whether you're buying new or used, as per the table below.

Victoria

In Victoria your stamp duty is different depending on whether you're buying new or used, and the type of vehicle.

The following numbers are current as at February 2019. Vehicle value thresholds may be adjusted regularly.

Australian Capital Territory

In the ACT, vehicles are categorised and taxed based on their environmental performance.

For vehicles $45,000 or less, duty must be paid at the following rates:

• A-rated vehicle: no duty payable
• B-rated vehicle: $1 for each $100, or part of $100, of the value of the vehicle
• C-rated vehicle and non-rated vehicle: $3 for each $100, or part of $100, of the value of the vehicle
• D-rated vehicle: $4 for each $100, or part of $100, of the value of the vehicle

For vehicles valued at more than $45,000, the following duty applies:

• A-rated vehicle: no duty payable
• B-rated vehicle: $450, plus $2 for each $100, or part of $100, of the value of the vehicle that is more than $45,000
• C-rated vehicle and non-rated vehicle: $1,350, plus $5 for each $100, or part of $100, of the value of the vehicle that is more than $45,000
• D-rated vehicle: $1,800, plus $6 for each $100, or part of $100, of the value of the vehicle that is more than $45,000

Western Australia

Vehicle licence duty in WA is paid to the Office of State Revenue. It is calculated as a percentage of a vehicle’s dutiable value and the following rates apply to vehicles with a gross mass of 4.5 tonnes or less.

Heavy vehicles with a gross mass over 4.5 tonnes are taxed at a flat 3% of dutiable value, to a maximum of $12,000.

The dutiable value is the manufacturer's price or the reasonable open market price of a used car.

Northern Territory

In the NT, motor vehicle stamp duty is simply 3% of the dutiable value for all passenger vehicles, but the dutiable value might vary, based on whether it's an arm's length transaction or a non arm's length transaction.

• Arm's length transaction. This is when the buyer and seller have independent interests. For example, a car dealer or previous owner selling to a member of the public. The vehicle's sale value is used to calculate dutiable value.
• Non-arm's length transaction. This is when the buyer and seller share interests. For example, if they're related or work for the same business. The vehicle's market value is used to calculate dutiable value.
• Sale value. The purchase price of the car, including all fitted accessories and applicable discounts.
• Market value. The reasonable value of the car on the open market, rather than the amount paid for it.

South Australia

In South Australia, different stamp duty rates apply to commercial and non-commercial vehicles:

• Commercial vehicle. According to the Motor Vehicles Act 1959, a commercial vehicle is defined as a motor vehicle constructed or adapted solely or mainly for the carriage of goods. For example, utes, vans, and other heavy vehicles would be classed as "commercial vehicles".
• Non-commercial vehicles. All vehicles that do not fall into the above category are classified as "non-commercial vehicles".

Commercial

Non-commercial

Tasmania

Vehicle stamp duty in Tasmania is based on the vehicle's value on the market:

• Up to $600: A flat $20
• $600 to $34,999: $3 per $100 market value (3%)
• $35,000 to $39,999: A flat $1,050 plus $11 per $100, or part thereof, over $35,000
• $45,000 and over: $4 per $100 or part thereof (4%)

In NSW, you may be also be exempt from paying stamp duty if you are a DVA pensioner and meet any of the following criteria:

• You receive a disability pension of at least 70%
• You have an Intermediate, Totally and Permanently Incapacitated (TPI) or Extreme Disablement Adjustment (EDA) pension
• You have been assessed under the Military Rehabilitation and Compensation Act 2004 and received 50 or more impairment points

Exemptions and duty reductions will vary by state or territory, so if you think you might be eligible for an exemption, contact the revenue office in your state or territory for more details.

If you hold a valid pension or concession card, you may be eligible for other vehicle registration exemptions, such as motor vehicle tax and other registration fees, but will generally still need to pay stamp duty.