Stamp duty for Vehicles (QLD, NSW, VIC & more)

Stamp duty is a tax levied on the sale of an asset for the costs involved with legally transferring ownership. Anyone who has purchased property likely remembers needing to pay tens of thousands of dollars' worth of duty fees to the government, but stamp duty also applies to cars. With a couple of exceptions, if you are buying a car, new or used, in Australia, you will need to pay stamp (or transfer) fees.

If you’re buying through a dealership, the cost of stamp duty is likely included in the driveaway price, while those who buy privately might need to pay the transport office directly.

Some people think stamp duty isn’t fair. The various taxes imposed throughout the production process of a car (import duty, corporate tax etc.) are reflected in the cost price, so consumers are arguably being taxed twice. The Goods and Service Tax (GST) was initially introduced in 2001 to replace stamp duty, but both often apply when you purchase a vehicle. Whatever your stance though, the fact is that if you don’t want to run afoul of the tax authorities in your state, you’ll probably need to pay up if you’re buying a car. We’ve broken down state by state how much you can expect to be charged.

NSW

As in most states, stamp duty in NSW is calculated based on the higher out of the purchase price or the vehicles market value.

In general, this is how stamp duty is calculated:

If you want to work out exactly how much you will owe, you can use the free stamp duty calculator the NSW government provides.

Victoria

In Victoria, things are a bit more complicated. The following characteristics can mean that the amount of duty owed is reduced:

• The vehicle emits less than 120g/km of CO2 (classified as a ‘green passenger’ car)

• The vehicle is a non passenger vehicle, which includes utes, motorbikes, commercial vans and any vehicle that can hold more than eight people

• The vehicle is registered to a ‘primary producer’, which is a person who works in agriculture or another field that produces food.

For all of these classifications, the dutiable value (again, the higher of the purchase price or market value) is irrelevant.

All other vehicles in Victoria, new or used, incur duty based on the following:

The Victorian stamp duty calculator is available here.

Queensland

Stamp duty in Queensland is based on the vehicle type, engine type and dutiable value. The following applies for light vehicles (under 4.5 tonnes).

The Queensland Government vehicle stamp duty calculator is available here.

Western Australia

In WA, the dutiable value for new vehicles is the recommended retail price, while for used cars it is the amount ‘for which the vehicle would be sold, free of encumbrances, on the open market’. New heavy vehicles (over 4.5 tonnes) are charged at the used rate.

The rates for vehicles under 4.5 tonnes are as follows:

Heavy vehicles are always charged 3% of dutiable value, capped at $12,000.

The WA vehicle stamp duty calculator can be found here.

South Australia

The dutiable value of new vehicles in South Australia is the recommended retail price or manufacturer's listing. For used vehicles, it is the higher of the sale price or the market value. SA also differentiates between commercial and non commercial vehicles.

Duty is calculated for non commercial vehicles as follows:

The stamp duty calculator for South Australia is available here.

Tasmania

Stamp duty in Tasmania is always calculated based on the market value of the vehicle.

The following duty applies to light vehicles (weighing less than 4.5 tonnes. Also excludes vehicles that carry more than eight people).

The Tasmania stamp duty calculator can be found here.

Australian Capital Territory

The ACT is another area where dutiable value is the higher out of market value or purchase price. The ACT also charges less duty based on the emissions of the vehicle. There are four possible ratings, based on CO2 output.

The following duties apply.

The calculator for vehicle stamp duty in the ACT can be found here.

Northern Territory

The NT is the most straightforward state or territory to calculate how much stamp duty you owe. It is simply calculated at $3 per $100 (or part thereof) of the dutiable value.

Working out the dutiable value is slightly more complicated: it depends on whether the vehicle was purchased at an ‘arm's length’ transaction, which means both parties have independent interests. A car bought at a dealership would be an arm's length transaction, whereas a dad selling his car to his child would be non arm's length. The dutiable value for arm's length transactions is the sale price, while for non arm's length it is the market value.

The calculator for vehicle stamp duty in the NT can be found here.

Exemptions

Just as the states and territories have grants for home buyers and other initiatives that exempt some people from stamp duty, there are also several circumstances where buyers won’t need to pay this tax.

Low emission/electric vehicles

In pursuit of environmental impact targets, all of the states and territories offer a reduced or waived stamp duty for vehicles with a low CO2 output.

Vehicle transferred ownership without a purchase

Some states and territories also include exemptions in the following circumstances:

• The vehicle was passed on in a will

• The vehicle is part of a divorce settlement

• The vehicle was purchased in a different state, and already registered in your name

Veterans

In many states, those who have served in the Australian defence force are excused from paying stamp duty.

The links below have the full list of exemptions and concessions for each state and territory.

NSW

VIC

QLD

WA

SA

TAS

ACT

NT

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Harry O'Sullivan

Finance Journalist

Harry joined InfoChoice Group in November 2022. With a degree in economics from the University of Queensland, Harry is interested in topics such as inflation and GDP, and is passionate about keeping Australians informed on the external factors that impact their personal finances.