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Car Stamp Duty

Stamp duty is a payment that must be made to the state government at the purchase of any new or used vehicle in Australia. 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 Australian 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 and you will need to calculate stamp duty, car registration length and other transfer charges to get a true idea of the cost. 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.

And here’s how the stamp duty calculator actually works:

ACT

Stamp duty on cars in Canberra and 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 (NSW)

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 (QLD)

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

Victoria (VIC)

Victoria has two thresholds for vehicle 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 (SA)

South Australia has a low stamp duty 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 (TAS)

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)

Western Australia has probably the most complicated car stamp duty structure in Australia so it’s best to use our stamp duty calculator. Alternatively, read on…

  • 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 and certainly with Private Fleet, any new vehicle quotation includes all on-road-costs and delivery to your door with a full tank of fuel. Why not give us a call and see how we may be able to help you with a new car?