Stamp Duty for Cars and How They Vary Per State in Australia


Mar 04th, 2020

Stamp Duty for Cars and How They Vary Per State in Australia

Consider this a quick lesson on personal finances – one of those things that they didn't teach us back in school. In this guide, we'll be talking about paying stamp duty for cars in Australia.

What Is Stamp Duty?

Let's get on the same page about what car owners pay as stamp duty. The term itself might seem intimidating at first, but it's all pretty straightforward.

Stamp duty is a tax that the Australian government charges you for legal documents. This tax usually applies to the documents you use when transferring assets from one person to another, just like when you decide to buy a car. That's all it is!

Where it can get slightly complicated is in figuring out the exact amount you'll have to pay for stamp duty. Depending on where you're located, you might pay a different amount even though the car you're buying is the exact, same model.

The buyer pays the stamp duty, while the seller usually has different taxes to pay as well.

How Stamp Duty Works for Cars in Australia

As mentioned before, the states differ in how they charge stamp duty. For example, some parts calculate the stamp duty based on the car's engine, while others base it on the age and value of the vehicle. Certain areas also set special stamp duty costs for hybrid vehicles to encourage the purchase of environmentally-friendly vehicles.

Let's take a look at how the procedures differ from one state to another.

In New South Wales

In New South Wales, the stamp duty can be based on one of two things. The amount you pay could be computed from the market value of the car or the amount you paid for it, whichever is higher.

It's always best to refer to the most up-to-date information straight from the source. For this region, the best source of information is the Roads and Maritime for New South Wales website.

Don't worry about having to do the math yourself. They’ve provided a Motor Vehicle Registration Duty Calculator that you could use.

In Queensland

For cars in Queensland, the stamp duty is calculated differently. Instead of using the vehicle's market value, the stamp duty is calculated based on the car's engine type or the amount you paid for it. Here, one of the most important factors is the car cylinder.

For example, vehicles with engines using 1-4 cylinders are charged differently compared to those with 5-6 or 7+ cylinders.

On top of that, for this region, the stamp duty for hybrid and electric vehicles are charged differently.

The Queensland Government has a handy little calculator to help you out. Check it out here!

In Victoria

Victoria does things a little differently. In this region, stamp duty for cars is usually calculated based on whether the vehicle is new or used. Alternatively, it could also be calculated based on how much you paid for it. As usual, the higher amount between the two will be used in calculating the stamp duty.

Additionally, there is a concession made for green cars and 'primary producer' passenger cars.

To get up-to-date information on stamp duty in Victoria, or to use the calculator for this region, be sure to visit the State Revenue Office of Victoria's website.

Victoria is also different from some other states when it comes to where you'll pay the stamp duty. Here, the car dealer collects the stamp duty. However, if it is a private purchase, the buyer pays the stamp duty directly to VicRoads or the Roads Corporation of Victoria.

In the Australian Capital Territory

The Australian Capital Territory is much more environmentally-conscious when it comes to the stamp duty for cars. Here, your stamp duty may be calculated according to the 'Vehicle Emission Reduction Scheme'. According to this scheme, the stamp duty you need to pay depends on both the price of the vehicle as well as where it fits on the federal government's 'Green Vehicle Guide'.

Under this guide, cars are classed from A to D. Class A would be the greenest of them all, while D is the least. If a vehicle isn't rated by the Green Vehicle Guide, it automatically falls under the 'C' category.

For the most up-to-date information on stamp duty for cars in the Australian Capital Territory, check out their website (and yes, they've got a calculator, too).

In Western Australia

For all of you in Western Australia, the stamp duty is not as ‘green’ as in the Australian Capital Territory. Instead, your stamp duty is based on what's considered to be the 'dutiable value' of the vehicle. This refers to the list price from the manufacturers if the car is new, or the 'reasonable' market value for used models.

Don't let this confuse you because the entire process can be handled smoothly through the Western Australia Department of Finance's website.

In Northern Territory

In the Northern Territory, calculating the stamp duty for cars is pretty simple. You'll need to pay a rate of 3% of the dutiable value of the vehicle, on top of a $17 fee to transfer the ownership.

You may refer to the for the stamp duty and other car-related fees for the Northern Territory.

In Tasmania

Ah, Tasmania, truly keeping it simple. Stamp duty for cars here is based on the vehicle's market value. The government website, in this case, is pretty straightforward and has all the stamp duty details listed out clearly in tables here. Alternatively, you could also use their nifty little calculator here to help you figure out the total amount payable for your car.

In South Australia

When it comes to private vehicles in South Australia, stamp duty rates are calculated based on the value of the car. For this region, all of the specifics can be found on the RevenueSA website here. A Registration Transfer fee is also applicable in South Australia, and payments are made through the Registrar of Motor Vehicles. 

There Are Only Two Things Certain in Life

And one of them is taxes, as the Benjamin Franklin quote goes. Paying the stamp duty might seem like an inconvenience, but it's something that you want to make sure you get right. 

In Australia, the rules vary depending on your region. It can get confusing, but all of the information you need can be found, with this guide as your starting point. 

So, make sure that you've got the most up-to-date information and pay your taxes so you can enjoy driving your car without any worries. You may bookmark us to keep our how-to guides and industry updates just a click away. 

By Ray Hasbollah