Buying a vehicle in Australia is exciting. Whether it’s your first car or an upgrade. But before you drive away, there’s one mandatory cost you can’t ignore: vehicle stamp duty.
Often referred to as “government charges”, car stamp duty, also known as motor vehicle duty, is a state-imposed government levy collected by state and territory revenue offices when ownership of a vehicle changes hands. It applies to both new and used vehicles and must be paid before registration can be transferred into your name.
For many Australians, this is where budgeting becomes overwhelming.
If you’ve ever asked:
- What is stamp duty when buying a car?
- How much is stamp duty on a car in my state?
- Who pays motor vehicle duty buyer or seller?
- Why is car stamp duty so expensive?
You’re not alone.
This guide breaks down vehicle stamp duty across every Australian state and territory in simple words so you can plan your purchase confidently and avoid unexpected costs.
What Is Motor Vehicle Stamp Duty?
Stamp duty, sometimes called transfer duty or motor vehicle duty, is a state government tax payable when ownership of a vehicle is transferred. In simple terms: If you buy a car in Australia, you must pay stamp duty before it can be registered in your name.
It applies to:
- New car stamp duty
- Stamp duty on second hand cars
- Stamp duty on used cars
- Private sales
- Dealer purchases
Note: Each state and territory sets its own rates and calculation method.
Why Is Vehicle Stamp Duty Important?
Understanding vehicle stamp duty is important because it increases the total cost of buying a car. Many buyers focus only on the purchase price, but car stamp duty can add hundreds or even thousands of dollars to your final on-road cost.
Since motor vehicle duty fees must be paid before registration is transferred, failing to budget for it can lead to unexpected expenses. Knowing the amount in advance helps you plan properly, compare vehicles accurately and avoid financial surprises.
How Much Is Stamp Duty on a Car?
Stamp duty is calculated on the dutiable value, which is usually:
- The purchase price
- Or the market value (whichever is higher)
What Determines Dutiable Value?
Dutiable value may include:
- Manufacturer’s list price
- Open market value
- Accessories and fitted extras
- Dealer delivery costs (in some states)
If authorities believe the purchase price is too low, they may reassess based on market value.
State-by-State Breakdown of Vehicle Stamp Duty
Victoria (VIC) Vehicle Stamp Duty
In Victoria, vehicle stamp duty is calculated differently depending on:
- Whether the vehicle is new or used
- Whether it is a passenger or non-passenger vehicle
- Whether it exceeds the Luxury Car Tax (LCT) threshold
Stamp duty in Victoria is calculated on the vehicle’s market value or purchase price (whichever is higher). Rates may be adjusted periodically by the State Revenue Office.
| Vehicle Type | Vehicle Market Value | Dutiable Rate |
|---|---|---|
| Green passenger car | All values | $8.40 per $200 or part thereof |
| Primary producer passenger car | All values | $8.40 per $200 or part thereof |
| New non-passenger motor vehicle (not previously registered) | All values | $5.40 per $200 or part thereof |
| Non-passenger motor vehicle previously registered | All values | $8.40 per $200 or part thereof |
| Used non-passenger motor vehicle (transfer to new owner) | All values | $8.40 per $200 or part thereof |
| Other passenger car | $0 – $80,567 | $8.40 per $200 or part thereof |
| Other passenger car | $80,567.01 – $100,000 | $10.40 per $200 or part thereof |
| Other passenger car | $100,000.01 – $150,000 | $14.00 per $200 or part thereof |
| Other passenger car | More than $150,000 | $18.00 per $200 or part thereof |
Example: $8,000 Car in Victoria
Let’s break it down clearly:
$8,000 ÷ $200 = 40
40 × $8.40 = $336
So, if you’re buying a standard used passenger vehicle valued at $8,000, your estimated car stamp duty Victoria amount would be $336.
Selling in Victoria? Know Your Car’s Real Value First.
See What My Car Is Worth in Melbourne
New South Wales Stamp Duty Motor Vehicle
In New South Wales, duty is calculated as:
| Vehicle Value | Duty Payable |
|---|---|
| Under $45,000 | $3 per $100 (3%) |
| $45,000+ | $1,350 + $5 per $100 (5%) |
If you’re buying a $20,000 car in NSW:
$20,000 × 3% = $600 stamp duty
Important Notes for NSW Buyers
- Duty applies to both new and used vehicles.
- Private sales and dealer purchases are treated the same.
- Low-emission and electric vehicles may qualify for concessional rates.
- Payment is required before registration transfer is completed.
Queensland Motor Vehicle Stamp Duty
In Queensland, motor vehicle stamp duty is calculated based on the vehicle’s engine type and number of cylinders. The rate applies to the vehicle’s dutiable value, which is the purchase price or market value (whichever is higher).
| Type of Vehicle | Duty Rate (Up to $100,000) | Duty Rate (More than $100,000) |
|---|---|---|
| Hybrid vehicles / Electric vehicles | $2 for each $100 (or part of $100) | $4 for each $100 (or part of $100) |
| 1 to 4 cylinders / 2 rotors / Steam powered | $3 for each $100 (or part of $100) | $5 for each $100 (or part of $100) |
| 5 or 6 cylinders / 3 rotors | $3.50 for each $100 (or part of $100) | $5.50 for each $100 (or part of $100) |
| 7 or more cylinders | $4 for each $100 (or part of $100) | $6 for each $100 (or part of $100) |
Important to Know
- These rates apply to both new and used vehicles.
- Stamp duty must be paid before the registration transfer is completed.
- Concessions may apply in limited circumstances.
- The higher rate applies only to the portion of the value above $100,000.
Western Australia (WA) Vehicle Stamp Duty
In Western Australia, vehicle licence duty is paid to the Office of State Revenue. It is calculated as a percentage of the vehicle’s dutiable value, which is generally:
- The manufacturer’s list price (for new vehicles) or
- The reasonable open market value (for used vehicles)
Whichever is higher may be used for assessment.
The following rates apply to vehicles with a gross mass of 4.5 tonnes or less:
| Vehicle Value | Duty Payable |
|---|---|
| Up to $25,000 | 2.75% of dutiable value |
| $25,000 – $50,000 | R% of dutiable value* |
| Over $50,000 | 6.5% of dutiable value |
*For vehicles between $25,000 and $50,000:
R = 2.75 + ((Dutiable Value − 25,000) ÷ 6,666.66)
The result is rounded to two decimal places.
Heavy Vehicles in Western Australia (WA)
Vehicles with a gross mass over 4.5 tonnes are taxed at:
- A flat 3% of dutiable value
- Capped at a maximum of $12,000
South Australia (SA) Stamp Duty on Cars
In South Australia, motor vehicle stamp duty differs depending on whether the vehicle is classified as commercial or non-commercial under the Motor Vehicles Act 1959.
What Is a Commercial Vehicle in SA?
A commercial vehicle is defined as a vehicle constructed or adapted mainly for carrying goods. This typically includes:
- Utes
- Vans
- Light trucks
- Other goods-carrying vehicles
What Is a Non-commercial Vehicle in SA?
All other vehicles are generally classified as non-commercial vehicles (standard passenger cars).
Stamp duty is calculated on the vehicle’s dutiable value, usually the purchase price or market value (whichever is higher).
Commercial Vehicle Stamp Duty (SA)
| Vehicle Value | Duty Payable |
|---|---|
| $1,000 or less | $1 per $100 (minimum $5) |
| $1,000 – $1,999 | $10 + $2 per $100 over $1,000 |
| $2,000 and above | $30 + $3 per $100 over $2,000 |
Non-Commercial Vehicle Stamp Duty (SA)
| Vehicle Value | Duty Payable |
|---|---|
| $1,000 or less | $1 per $100 (minimum $5) |
| $1,000 – $1,999 | $10 + $2 per $100 over $1,000 |
| $2,000 – $3,000 | $30 + $3 per $100 over $2,000 |
| $3,000 and above | $60 + $4 per $100 over $3,000 |
Example: $15,000 Passenger Car in SA
Since this is a non-commercial vehicle over $3,000:
$60 + ($12,000 × 4%)
= $60 + $480
= $540 stamp duty
Northern Territory Motor Vehicle Stamp Duty
In the Northern Territory, motor vehicle stamp duty is calculated at a flat rate of:
3% of the vehicle’s dutiable value
This applies to most passenger vehicles.
However, the key factor in the NT is how the dutiable value is determined. It may vary depending on whether the transaction is considered arm’s length or non-arm’s length.
Understanding Key Terms
This matters more than most buyers realise.
Arm’s Length Transaction:
Buyer and seller act independently (e.g., dealership sale).
Non-arm’s Length Transaction:
Buyer and seller are related (family members, company transfer). In non-arm’s length cases, authorities may ignore the sale price and use market value instead.
Sale Value
The actual purchase price paid for the vehicle, including fitted accessories and applicable discounts.
Market Value
The reasonable open market value of the vehicle is what it would typically sell for between unrelated parties.
Example
If you purchase a vehicle in the NT for $25,000 in an arm’s length sale:
$25,000 × 3% = $750 stamp duty
If the same vehicle is sold below market value to a family member, duty may instead be calculated on its assessed market value.
Tasmania Vehicle Stamp Duty
| Value | Duty |
|---|---|
| Under $600 | A flat $20 |
| $600 - $35,000 | $3 per $100 market value (3%) |
| $35,000–$40,000 | A flat $1,050 plus $11 per $100, or part thereof, over $35,000 |
| Over $40,000 | $4 per $100 or part thereof (4%) |
Australian Capital Territory (ACT) Car Stamp Duty – Environmental Based
In the ACT, motor vehicle stamp duty is calculated based on a vehicle’s environmental performance rather than just its value. Vehicles are categorised according to their CO₂ emissions per kilometre, encouraging the purchase of cleaner, low-emission vehicles.
ACT Environmental Performance Categories
| Performance Rating | Description | CO₂ Emissions (g/km) |
|---|---|---|
| AAA | Zero emissions vehicle | 0 |
| AA | Environmental leading edge | 1–65 |
| A | Environmental leading edge | 66–130 |
| B | Above-average environmental performance | 131–175 |
| C | Average environmental performance | 176–220 |
| D | Below-average environmental performance | 221+ |
Note: Prior to 1 July 2024, AAA, AA and A vehicles were grouped within a single Category A.
ACT Stamp Duty Rates (From January 2025)
Vehicles Valued Below $45,000
| Vehicle Category | Duty Payable |
|---|---|
| New & used Category AAA | $0 |
| New Category AA | $0 |
| New Category A | $0 |
| Used eligible hybrid / PHEV | $0 |
| New Category B | $1 per $100 |
| Non-rated vehicles | $3 per $100 |
| New Category C | $3.17 per $100 |
| New Category D | $4.53 per $100 |
Vehicles Valued at $45,000 or More
| Vehicle Category | Duty Payable |
|---|---|
| New & used Category AAA | $0 |
| New Category AA | $0 |
| New Category A | $0 |
| Used eligible hybrid / PHEV | $0 |
| New Category B | $450 + $2 per $100 over $45,000 |
| Non-rated vehicles | $1,350 + $5 per $100 over $45,000 |
| New Category C | $1,426.50 + $5.62 per $100 over $45,000 |
| New Category D | $2,038.50 + $7.81 per $100 over $45,000 |
Important Notes
- Duty is calculated on the vehicle’s dutiable value (purchase price or market value, whichever is higher).
- Used eligible hybrid and plug-in hybrid vehicles may qualify for concessions.
- Rates are subject to change based on government policy updates.
Buying a Car Stamp Duty Checklist
Before finalising your purchase:
- Confirm the vehicle’s market value and ensure the car is roadworthy before completing the transfer
- Use stamp duty calculator motor vehicle VIC (or your state equivalent)
- Check exemption eligibility
- Budget full on-road costs
- Confirm transfer deadline (often 14 days)
Planning ahead avoids nasty surprises.
What Are Government Charges on a Car?
When buying a vehicle in Australia, vehicle stamp duty is only one of several government charges you’ll need to budget for.
In addition to motor vehicle duty, you may also need to pay:
- Registration fees – Required to legally drive the vehicle on public roads
- Compulsory Third Party (CTP) insurance – Covers personal injury liability
- Vehicle transfer fees – A government fee charged when ownership is transferred and registration is updated in your name.
- Number plate fees – Standard or personalised plates
- Dealer delivery charges – Administrative and preparation costs (when buying from a dealership)
Depending on your state, additional road safety or administrative levies may also apply. Understanding these costs upfront helps you calculate the true on-road price, not just the purchase price. Stamp duty for vehicles is just one component of the total cost of ownership.
Stamp Duty on Used Cars vs New Cars
| Type | Stamp Duty Basis | Risk |
|---|---|---|
| New | Invoice price | Clear valuation |
| Used | Market value or sale price | Possible reassessment |
The structure remains the same, but the vehicle valuation method differs.
How to Avoid Paying Stamp Duty on a Car (Are You Exempt?)
In most cases, vehicle transfer duty is a mandatory government charge when buying or transferring a vehicle in Australia. However, there are limited situations where you may qualify for a full exemption or concessional rate.
You May Be Exempt from Motor Vehicle Duty If:
- The vehicle is inherited through a deceased estate
- The vehicle is transferred as part of a divorce or separation settlement
- You are an eligible war veteran
- You are a DVA pensioner (state-specific conditions apply)
- The vehicle is used to transport a disabled person
- The transfer occurs between spouses (in certain states)
Exemptions and eligibility requirements vary between states and territories. Supporting documentation is usually required and approval is not automatic.
Before assuming you qualify, always confirm with your state or territory revenue office to avoid penalties or delayed registration.
Related Article:
Does Car Insurance Cover Additional Drivers in Melbourne, VIC?
Documents Needed to Sell My Car in Melbourne – Registration, Roadworthy, Transfer & More
Final Thoughts from Sell The Car
Understanding vehicle transfer duty, car stamp duty and motor vehicle duty ensures you’re financially prepared before purchasing a vehicle in Australia. These government charges can significantly affect your total on-road cost, so planning ahead is essential.
Before you buy, make sure you:
✔ Calculate your full on-road costs
✔ Use a vehicle stamp duty calculator for your state
✔ Check if you qualify for any exemptions
✔ Verify the vehicle’s true market value
✔ Factor in registration, CTP and transfer fees
At Sell The Car, we are a trusted Australian car buying company located in Melbourne that helps vehicle owners sell their cars quickly, safely and without the hassle of private listings. We provide accurate market-based valuations and competitive offers, giving you clarity before you buy or sell. Whether you’re upgrading, downsizing or simply exploring your options, our platform makes the process simple and transparent. Because smart buyers and smart sellers always plan ahead.
Visit us to get a fast car valuation | request a competitive offer today
FAQs About Vehicle Stamp Duty
Who pays motor vehicle duty, the buyer or the seller?
In Australia, the buyer is responsible for paying motor vehicle duty. The payment is required before the vehicle registration can be legally transferred into the buyer’s name. This applies whether you purchase from a dealer or through a private sale.
Do pensioners pay stamp duty on cars?
It depends on the state or territory. Some pensioners and DVA card holders may qualify for concessions or exemptions, but eligibility criteria vary. Always check with your local revenue office before assuming you’re exempt.
If you’re unsure about total purchase costs, services like Sell The Car can help you understand the full financial picture before buying or selling.
What is stamp duty when buying a car?
Stamp duty is a state government tax charged when vehicle ownership transfers from one person to another. It must be paid before registration can be updated in your name. The amount depends on the vehicle’s value and the state where it is registered.
Why is car stamp duty so expensive?
Car stamp duty can feel expensive because it’s calculated as a percentage of the vehicle’s value. It is a major source of revenue for state governments and helps fund:
- Road infrastructure
- Licensing and registration systems
- Public transport projects
- Road safety programs
Although it adds to your upfront cost, it contributes to maintaining Australia’s transport network.
Is stamp duty included in the cost base of a motor vehicle?
Yes. If the vehicle is used for business purposes, stamp duty generally forms part of the asset’s cost base for depreciation and tax calculations. It increases the total value of the vehicle for accounting purposes.
Is stamp duty on motor vehicles tax deductible?
Stamp duty is not immediately tax deductible. However, if the vehicle is used for business, the amount paid may be included in the vehicle’s depreciable value. Always seek advice from a registered accountant for your specific situation.
Is there GST on stamp duty for a motor vehicle?
No. Stamp duty itself does not attract GST. However, GST is usually included in the vehicle’s purchase price if you buy from a dealer. Stamp duty is then calculated on the dutiable value, which may include GST.
How can I reduce the total cost when buying or selling a car?
The best way to reduce financial surprises is to:
- Check your state’s stamp duty calculator
- Confirm the vehicle’s true market value
- See if you qualify for exemptions
- Compare offers before buying or selling
At Sell The Car, we’re an Australian car buying company that helps sellers access competitive market offers quickly and transparently. Understanding your vehicle’s real value before making a decision can help you avoid overpaying or underselling.
When was the first motor vehicle invented?
The first practical motor vehicle was invented in 1886 by Karl Benz in Germany. His invention, known as the Benz Patent-Motorwagen, is widely recognised as the world’s first true automobile powered by an internal combustion engine.
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