Make sure you get stamp duty correct using this helpful guide. It can differ from state to state, so check out the details below to find out how to calculate stamp duty for your new vehicle.
What Is Stamp Duty?
Stamp duty is a one-off tax paid when transferring a car to a new owner. Whether you buy the vehicle from a showroom, a previous owner, or anywhere else, you must pay stamp duty to cover the cost of transferring ownership.
Stamp duty always applies to both new and used vehicles, but different stamp duty rates apply in each state. Some states have a flat rate, whereas others provide incentives for buyers to invest in electric vehicles (EVs).
You pay stamp duty based on either the market value of the vehicle or what you paid for it, depending on the laws in each state.
You might also hear stamp duty called different terms, including motor vehicle duty or vehicle registration duty.
Who Pays Stamp Duty?
During purchase, you pay motor vehicle stamp duty to the state revenue office. Notably, if you buy a car in a different state, you pay stamp duty to the state where the car is registered.
There are some exemptions, but these vary by state. You can check out the motor vehicle duty exemptions below depending on which state you live in.
Stamp Duty in Australia by State
Here is the amount of stamp duty you need to pay, depending on which state you live in.
Queensland
Queensland bases stamp duty fees on the engine type of the car in question. It also varies depending on the price of the car and whether the cost is under or over $100,000.
For cars under $100,000, the prices are as follows:
- Hybrid or EVs: $2 per $100
- 1-4 cylinders, 2 rotors, or steam vehicle: $3 per $100
- 5-6 cylinders or 3 rotors: $3.5 per $100
- 7+ cylinders: $4 per $100
For vehicles over $100,000, stamp duty is:
- Hybrid or EVs: $4 per $100
- 1-4 cylinders, 2 rotors, or steam vehicle: $5 per $100
- 5-6 cylinders or 3 rotors: $5.5 per $100
- 7+ cylinders: $6 per $100
However, you can get discounts on stamp duty if you are a senior citizen. You may also be exempt if the vehicle is:
- Part of a divorce or property settlement
- A gift from a relative
- Registered in QLD
- For business use (including if you're a car salesperson)
- Part of the previous owner's estate and is passed on in the event of their death
- For use by a charity or for primary production
There are some other exemptions which you can see here.
Victoria
Victoria has a more complicated set of stamp duty rules. These new rates came about in 2021 and depend on the CO2 emissions of the vehicle and whether it is a new or used car.
Passenger vehicles that emit less than 120g of CO2 per km are considered "green passenger cars", and these carry the lowest rates.
The fees are as follows:
- Green passenger vehicle: $8.40 per $200
- Primary producer passenger vehicle: $8.40 per $200
- New utes, vans, motorcycles, and minibuses: $5.40 per $200
- Used utes, vans, motorcycles, and minibuses: $8.40 per $200
For all other vehicles, both new and used, rates vary depending on the value of the vehicle. It depends on the market value or the price you paid, whichever is greater. You can use the stamp duty calculator to figure it out.
Notably, stamp duty is collected directly by the dealer if you buy from a licensed motor car trader, or given to VicRoads in private sales.
Exemptions apply for vehicles that were part of the previous owner's estate, those used for charitable purposes, or interstate transfers.
Northern Territory
In the Northern Territory, motor vehicle duty is simply 3% of the dutiable value (the manufacturer's price for new vehicles, or a reasonable market value for used vehicles), plus a flat fee of $18 to transfer ownership.
You might be exempt for a number of reasons, which are mostly similar to the other states. You can find a complete list here.
South Australia
Passenger vehicles in South Australia are subject to stamp duty based on the purchase price of the car.
- Up to $1000: $1 per $100, with a minimum of $5
- $1001-2000: $10 plus $2 per $100
- $2001-3000: $30 plus $3 per $100
- $3001+: $60 plus $4 per $100
For commercial vehicles, the same rates apply up to a value of $2000. After that, the rate is $30 plus $3 per $100 over $2000.
SA offers similar exemptions, with the addition of council vehicles, repossessed vehicles, and buses.
New South Wales
Stamp duty fees in NSW are based on either the market value or purchase price, whichever is greater. The calculation is very simple:
- $44,999 or less: $3 for every $100
- $45,000 or more: $1350 plus $5 per $100
You may be exempt depending on the type of vehicle or if you are permitted to concessions. Some of the most common exemptions include:
- DVA pensioners
- Heavy vehicles (HGVs) weighing more than 4.5 tonnes
- Caravans, trailers, or campers
A full list of exemptions is available on the NSW website.
Tasmania
Tasmania bases stamp duty on the vehicle's market value. It's pretty simple to calculate:
- Up to $600: Flat rate of $20
- $600-$34,999: $3 per $100
- $35,000-$39,999: $1050 plus $11 per $100
- $40,000+: $4 per $100
Western Australia
WA also charges based on the dutiable value, but it's slightly more complicated than other states.
- Up to $25,000: 2.75% of the price
- $25,001-$50,000: R% of the dutiable value where R = [2.75 + ((dutiable value – 25000)/6666.66)]
- $50,000+: 6.5% of the price
So, for a new vehicle with a purchase price of $30,000, the rate charged would be 3.5%.
Exemptions include if the vehicle is part of a divorce settlement, is a charitable use vehicle, or is under consideration as part of a corporate restructure. Furthermore, caravans and trailers are exempt if they transfer between owners.
Australian Capital Territory
The ACT calculates stamp duty based on a combination of the vehicle's purchase price and how it stands in the Green Vehicle Guide. Drivers of Class A vehicles are exempt from motor vehicle duty altogether.
The rates for vehicle stamp duty are based on dutiable value as follows:
- Class B: $1 for every $100 on vehicles under $45k, or $450 plus $2 per $100 on vehicles over $45k
- Class C: $3 for every $100 on vehicles under $45k, or $1350 plus $5 per $100 on vehicles over $45k
- Class D: $4 for every $100 on vehicles under $45k, or $1800 plus $6 per $100 on vehicles over $45k
Final Thoughts
Both passenger and commercial vehicles in Australia are subject to stamp duty, and the rates apply to new and used vehicles. You can usually calculate stamp duty yourself and check out the local government website to see if you are exempt. Alternatively, use a stamp duty calculator to help you.
Remember, if you are buying a used vehicle, you should also get a history check on Carify to ensure your new vehicle is worth its value.
