Stamp Duty Explained – Aussie Car Loans

Stamp Duty Explained

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“Only two things are certain in life…” or so the quote goes. One of them is taxes. But when you’re purchasing a car, there’s another inescapable fee to face: it’s called Stamp Duty, and it’s applicable in all Australian states and territories.

What is Stamp Duty?

Stamp Duty is a government tax for motor vehicles. The amount you pay will depend on the car’s market value, including GST. It will be paid to the Tax Revenue Office of your state or territory within two weeks of purchasing or transferring ownership of a vehicle.

When should it be paid?

This tax must be paid for every purchase of new or used motor vehicles, whether privately, through a dealership or using car finance.

Stamp Duty is also due on all transfers of ownership. If you are buying a car from a dealership, the tax will be included in the vehicle’s on-road costs. The dealership will be the one to pay for it on your behalf.

On the other hand, buying or transferring of a vehicle through a private seller means you have to pay Stamp Duty to the Tax Revenue Office directly. Payment must be made within 14 days.

Stamp Duty Rates By State

Below are the different stamp duty rates for the Australian states and territories:

QLD  |  NSW  |  VIC  |  SA  |  TAS  |  WA  |  NT  |  ACT

Stamp Duty in Queensland

In Queensland, the stamp duty rates are based on two factors. One is the higher value between the price you paid (including all optional equipment) and the vehicle’s actual market value. Second, is the type of engine of the vehicle.

Below $100,000 $100,000 and Up
Hybrid and Electric Vehicles $2 for every $100 or part of $100 $4 for every $100 or part of $100
1 to 4 cylinders, 2 rotors or steam vehicles $3 for every $100 or part of $100 $5 for every $100 or part of $100
5 to 6 cylinders or 3 rotors $3.5 for every $100 or part of $100 $5.50 for every $100 or part of $100
7 or more cylinders $4 for every $100 or part of $100 $6 for every $100 or part of $100

Stamp Duty in New South Wales

Determining the stamp duty rates for motor vehicles in New South Wales is much simpler. It’s determined by comparing the value between the price you paid (including all optional equipment) and the vehicle’s actual market value. The stamp duty rate is the higher value of the two, also called dutiable value.

Dutiable Value Stamp Duty Rate
Less than $45,000 $3 for every $100 or part of $100
$45,000 and Up $1,350, plus $5 for every $100 or part of $100

Stamp Duty in Victoria

Three factors determine the rate of Stamp Duty in Victoria: the dutiable value (the higher between the price you paid and the vehicle’s market value), whether the car is new or used, and the type of vehicle (passenger or non-passenger).

$66,331 and below Above $66,331
New passenger cars $8.4 for every $200 or part of $200 $10.4 for every $200 or part of $200
Used passenger cars $8.4 for every $200 or part of $200 $8.4 for every $200 or part of $200
New non-passenger cars $5.4 for every $200 or part of $200 $5.4 for every $200 or part of $200
Used non-passenger cars $8.4 for every $200 or part of $200 $8.4 for every $200 or part of $200
New Demonstrator passenger cars $8.4 for every $200 or part of $200 $10.4 for every $200 or part of $200
Used Demonstrator passenger cars Not Applicable Not Applicable
New Luxury passenger cars Not Applicable $10.4 for every $200 or part of $200
Used Luxury passenger cars Not Applicable $8.4 for every $200 or part of $200

Stamp Duty in South Australia

In South Australia, Stamp Duty rates are based on the dutiable value of the vehicle and whether they are for private or commercial purposes. The dutiable value for a new vehicle is the price of the car (including Luxury tax and GST). Meanwhile, this value for commercial vehicles is the higher between the price you paid and the vehicle’s market value.

Below $1000 $1001 to $2000 $2001 to $3000 $3001 and above
Private $1 for every $100 or part of $100 (minimum of $5) $10 plus $2 for every $100 or part of $100 $30 plus $3 for every $100 or part of $100 $60 plus $4 for every $100 or part of $100
Commercial $1 for every $100 or part of $100 (minimum of $5) $10 plus $2 for every $100 or part of $100 $30 plus $3 for every $100 or part of $100 over $2000 $30 plus $3 for every $100 or part of $100
over $2000

Stamp Duty in Tasmania

The dutiable value of the vehicle is the sole consideration for the stamp duty rate in Tasmania. For new vehicles, this value is the consideration paid for them. Meanwhile, the dutiable value for used vehicles is the higher between three things: the consideration paid, the market value upon acquisition, or the value upon registration.

Dutiable Value Stamp Duty Rate
$600 and below $20
$601 to $35,000 $3 for every $100 or part of $100
$35,001 to $40,000 $1050, plus $11 for every $100 or part of over $35,000
$40,001 and above $4 for every $100 or part of $100

Stamp Duty in Western Australia

For new vehicles in Western Australia, the Stamp Duty rate is based on the list price of the manufacturer plus optional equipment prices. While for used cars, it’s based on the purchase price plus accessories and delivery charges.

Dutiable Value Stamp Duty Rate
$25,000 and below 2.75% of dutiable value
$25,001 to $50,000 2.75% of dutiable value, plus [(dutiable value – $25,000) / 6666.66]
$50,001 and above 6.5% of dutiable value

Stamp Duty in Northern Territory

In the Northern Territory, the Stamp Duty rate for new and used motor vehicles is determined by the purchase price, plus the value of additional equipment.

The rate is $3 for every $100 or part of $100 plus transfer of ownership fee (for used vehicles) of $17. This applies to all vehicles regardless of the price.

Stamp Duty in Australian Capital Territory

The Stamp Duty rates for vehicles in the ACT are based on the retail price plus the cost of additional equipment and their Green Vehicle Classification. The classification divides motors into four categories: Class A, B, C and D. Class A vehicles are the greenest while Class D cars are worse for the environment. Used vehicles and those with no Green Vehicle rating belong to Class C.

Class A Class B Class C Class D
$45,000 and below No Stamp Duty $1 for every $100 or part of $100 $3 for every $100 or part of $100 $4 for every $100 or part of $100
Above $45,000 No Stamp Duty $450, plus $2 for every $100 or part of $100 $1350, plus $5 for every $100 or part of $100 $1800, plus $6 for every $100 or part of $100

This article is meant as a guide to paying Stamp Duty on your next purchase of a motor vehicle, whether used or brand new. If you need more information, reach out to your State’s Tax Revenue Office. There are also some handy stamp duty calculators out there to help you figure out how much you will have to pay. Click on the relevant state below to use their calculator:

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