However, many car buyers are unsure what 'dutiable value' means. This guide covers everything you need to know so that you can pay the correct amount of motor vehicle stamp duty.
What Is the Dutiable Value of a Vehicle?
The dutiable value of a motor vehicle refers to the price it could be sold for on the open market.
For a new car, the vehicle's dutiable value is the retail selling price plus the amount paid for add-ons and optional equipment. For a used vehicle, it can be either the retail selling price or market value, whichever is greater.
Why Do I Need to Know the Dutiable Value of a Vehicle?
You will need to know the dutiable value of the vehicle to pay the motor vehicle stamp duty. Most states calculate the stamp duty payable based on the dutiable value, which means you need to know it when figuring out what you need to pay. There is also usually a duty calculator on the government site.
It's also helpful in other circumstances. Insurance companies often want to know the market value or dutiable value of the motor vehicle when calculating the best insurance rate for you.
When buying a used car, knowing the actual value of the vehicle can empower you to make a good purchasing decision. If you know that the vehicle licence duty will be high, for example, you can negotiate a lower price to ensure you're getting a good deal.
Knowing the market value can also help you negotiate an accurate price in the first place.
How Do I Calculate Dutiable Value?
You can calculate the dutiable value of a motor vehicle quite easily. Look at the market value and the purchase price; the higher number is the dutiable value of the vehicle. For new cars, it's as simple as looking at the retail price from the car dealer. For used cars, you just need to compare the two figures.
For cars sold at auction, the total purchase price is taken as the value.
Once you have the dutiable value, you can use this number to calculate motor vehicle stamp duty and ensure the purchase runs smoothly.
You can work out the dutiable value in many ways. When buying a used vehicle, a car history report can be of great help in working out the current market value. Check out Carify's reports to see real-time motor vehicle market value that takes condition into consideration.
Using Dutiable Value to Calculate Stamp Duty
The amount of stamp duty payable depends on the specific state or territory where the car is registered. Generally, it is calculated as a percentage of the dutiable value or the vehicle's market price. However, the exact percentage can also vary depending on the motor vehicle type, with heavy vehicles (defined as having a gross mass of over 4.5 tonnes) subject to more significant stamp duty.
What Else to Know About Stamp Duty
Motor vehicle stamp duty is confusing for lots of drivers. In short, stamp duty is a one-off tax paid when purchasing goods such as motor vehicles or houses. Also called vehicle registration duty, it pays for the cost needed to transfer registration.
Check out the sections below to find out everything you need to know about motor vehicle duty.
Stamp Duty by State
As mentioned above, stamp duty varies by state. It might also be called different things, including motor vehicle duty, licence duty, or registration duty. Make sure you research your local government site to see how much duty you need to pay on a car.
Here is a run-down of the dutiable value and stamp duty calculations in each territory.
Victoria
Dutiable value in Victoria is considered either the purchase price or the market value, whichever is higher. For new and used passenger vehicles valued up to $65,094.00, the stamp duty is $8.40 for every $200 or part thereof.
Anything over this is considered a luxury car, and the stamp duty payable is $10.40 per $200 or part thereof.
Commercial vehicles and non-passenger vehicles have different rates.
New South Wales
The dutiable value is the sale value or market value, whichever is greater.
For all cars valued at $45,000 or less, the rate is $3 per $100 or part thereof. For cars over $45,000, there is a flat fee of $1350 plus $5 for every $100 or part thereof.
Queensland
Queensland uses a combination of dutiable value and the number of cylinders a car has. The breakdown is as follows:
- Hybrid or electric vehicles: $2 per $100 or part thereof
- 1-4 cylinders: $3 for every $100 or part thereof
- 5-6 cylinders: $3.50 for every $100 or part thereof
- 7+ cylinders: $4 for every $100 or part thereof
South Australia
The dutiable value is calculated based on the recommended retail price or manufacturer's list price, whichever is greater, and includes GST or luxury car tax.
The breakdown is as follows:
- Up to $1000: $1 per $100 ($5 minimum)
- $1000.01 - $2000: $10 plus $2 for every $100 or part thereof over $1000
- $2000.01 - $3000: $30 plus $3 for every $100 or part thereof over $2000
- $3000+: $60 plus $4 for every $100 or part thereof over $3000
However, there are different rates for commercial vehicles.
Western Australia
The dutiable value is the retail price plus any add-ons for optional equipment. For used cars, it's the purchase price plus any dealer delivery fees and accessories.
- Up to $25,000: 2.75%
- 25,000.01 - $50,000: 2.75% plus ((value - $25,000) /6,666.66)%
- $50,000+: 6.5%
Tasmania
Dutiable value in Tasmania is more complicated. For a new vehicle, it's the consideration paid, disregarding trade-ins.
For a used vehicle, it's one of three options: the consideration paid, the market value at the time it was acquired, or the value at the time of application for vehicle registration.
- Up to $600: $20 flat fee
- $600.01 - $35,000: $3 for every $100 or part thereof
- $35,000.01 - $40,000: $1050 plus $11 for every $100 or part thereof
- $40,000+: $4 for every $100 or part thereof
Northern Territory
The dutiable value is simply the purchase price. And there is a flat rate of $3 for all vehicle types, new or used.
Note that this can vary depending on if it is an arm's length transaction or a non-arms-length transaction.
Australian Capital Territory (ACT)
The ACT calculates stamp duty based on a combination of the retail selling price and the environmental grade. New vehicles should all have a green rating, but used vehicles without one are valued the same as a Grade C.
The duty differs depending on whether the car is valued at $45,000 or above. For cars below $45,000:
- Grade A: No duty payable
- Grade B: $1 for each $100
- Grade C: $3 for each $100
- Grade D: $4 for each $100
For vehicles valued over $45,000:
- Grade A: No duty payable
- Grade B: $450 plus $2 per $100
- Grade C: $1350 plus $5 per $100
- Grade D: $1800 plus $6 per $100
Paying Stamp Duty
Most states have a duty calculator to help you figure out how much you owe. You can also pay both the stamp duty and the vehicle's registration online on the site.
What Other Duties Do You Need to Pay on a Car?
Stamp duty is not the only cost you must pay when buying a car. There is also:
- The vehicle registration
- Luxury car tax, if applicable
- Vehicle inspection fee
- Compulsory third-party (CTP) insurance
See our other guides on buying a car to ensure the entire process runs smoothly.
Summary
In short, the dutiable value of a vehicle is the total price of the car. It is either based on the market value or the purchase price, depending on which is higher. You need to know the value of the vehicle so you can adequately calculate stamp duty and pay the correct fees.
If you want to learn the market value of a used car, get a Carify vehicle history report to learn about its current registration and value. That way, you can ensure you're making a smart purchasing decision every time.
FAQ
Here are our top four FAQs; visit our FAQ page for more.
1. How Much Is Stamp Duty in Australia?
Stamp duty in Australia varies between territories. It also depends on the vehicle's value and, in some states, the engine size and environmental grade. See our full breakdown of stamp duty by state for more.
2. Does Dutiable Value Include GST?
In Australia, the vehicle registration duty also includes goods and services tax (GST). Your local government site should provide more information on whether GST is included in the vehicle's value since specifics can vary from state to state. The value may also include luxury car tax.
3. How Can You Tell a Vehicle's Market Value?
For a new car, the value is simply the recommended retail price. However, for used vehicles, it depends on a number of factors. A vehicle history check from Carify can tell you a car's current price based on the make, model, and condition to help you negotiate an accurate price.
4. Do I Have to Pay Stamp Duty?
Yes. In most cases, you must pay stamp duty on any car you buy. However, some people are exempt. For example, you may be exempt if the vehicle is part of a divorce settlement, belongs to a charity, or was left to you in a will. Some drivers are also exempt, including if you are an injured person who is permanently incapacitated, an eligible war veteran, or if you are a pensioner. Check your local government site for more information.
