Stamp Duty on New Cars

Stamp duty is a payment that must be made to the state government at the purchase of any new or used vehicle. The actual amount of stamp duty and how to calculate it varies quite considerably from state to state but is always calculated based on the GST inclusive cost of the vehicle.

As with home purchases in most states and territories, car stamp duty is generally calculated on a sliding scale, becoming a greater proportion of the vehicle cost as the purchase price increases.

One very important consideration when considering a vehicle purchase is to take into account that when a new vehicle is quoted as 'on the road' the stamp duty is generally accounted for. In fact the supplying dealer will pay the stamp duty on your behalf once payment has been received. However, when purchasing a used vehicle from a dealer, bear in mind that the cheque to the dealer will not be the only payment. Stamp duty based on the car purchase price and registration charges will have to be paid at the local motor registry following delivery of the vehicle. This is very important to bear in mind when tossing up between a late model used vehicle and a brand new vehicle.

Stamp Duty Calculator and Luxury Car Tax Calculator

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And here's how it works:

ACT

Stamp duty on new vehicles in the ACT is charged as follows

3% of the vehicle price inclusive of GST up to $45,000
5% for every dollar over $45,000.

New South Wales

Stamp duty on vehicle purchases is charged as follows:

3% of the vehicle price inclusive of GST up to $45,000
5% for every dollar over $45,000.

Example - a car costing $65,000, stamp duty would be charged at 3% of $45,000 plus 5% of $20,000 (the amount above the $45,000 threshold) = $1,350 + $1,000 = $2,350

Queensland

Stamp duty in Queensland is now based on the engine size as well as the purchase price. Best to use our calculator above.

Victoria

Victoria has two thresholds for stamp duty charges though the percentage applies to the total market value of the vehicle.

2.5% of the vehicle price up to $57,009
5% of the total price where this is over $57,009

South Australia

South Australia has a low threshold that must be observed

$60 for the first $3,000 of the purchase price (or part thereof)
4% for every dollar over $3,000

Tasmania

Tasmania has a structure based on three price margins

3% of the purchase price up to $35,000
11% for every dollar between $35,000 and $45,000
4% for every dollar over $45,000

Western Australia

WA has probably the most complicated stamp duty structure in Australia!

2.75% of the vehicle price up to $15,000
A sliding scale is used between $15,000 and $40,000 from 2.75% to 6.5%
6.5% for every dollar over $40,000

Remember that for new vehicles, stamp duty should always be included in any on-road cost.