If you’re in the market for a new car, you’ll have to be aware of just how much stamp duty can add to the price well ahead of your purchase.
Stamp duty can be a complex and confusing topic, which is why we’ve put together this helpful guide that can break it all down for your specific State or Territory.
Let’s jump in and have a look at how much stamp duty you’ll be paying on your new car, and how it can change dramatically depending on where in Australia you live.
What is Motor Vehicle Stamp Duty?
Motor vehicle stamp duty refers to the price of official documentation issued by an Australian State or Territory to certify the purchase of a new or used vehicle.
In the case of buying a new car, there is a stump duty fee that needs to be paid in order for the government to certify the purchase and provide you with all the necessary documents for road-legal driving.
How Much Stamp Duty Do I need to Pay?
The amount of stamp duty fees you’ll pay while purchasing a new car depends on a few things.
Namely, the State or Territory that you’re registering the vehicle in, as well as the value of the vehicle you’re purchasing. This is because individual governments set the price and terms of paying stamp duty, so let’s take a closer look.
Stamp Duty: State by State
New South Wales
In New South Wales, the amount of stamp duty you’ll pay on the purchase of a new car is calculated at $3 per $100 of the purchase price for vehicles up to $45,000.
For a new car priced under this threshold, the maximum amount of stamp duty you’ll pay in NSW is $1,350.
For vehicles priced over $45,000, though, you can expect to pay $1,350 plus an additional stamp duty rate of $5 per $100 that you spend on your new car over the threshold.
In Queensland, stamp duty is determined primarily by the size of the engine, with hybrid and battery-electric vehicles receiving a number of incentives in the process.
Stamp duty on the purchase of a four-cylinder passenger vehicle in Queensland is charged at $3 per $100 - up to $100,000 - while six- and eight-cylinder engines are charged $4 and $6 per $100 of value respectively, up to the $100,000 limit.
Eligible hybrid and battery-electric vehicles have the cheapest stamp duty rates, with fees sitting at $2 per $100 of value up to $100,000, rising to $4 per $100 of value above that figure.
In Victoria, stamp duty fees are calculated at around $8.40 per $200 of value for passenger vehicles priced up to $71,849, which increases to $10.40 per $200 of value if the vehicle exceeds the threshold.
For vehicles purchased that are priced up to $150,000, you’ll be paying $14 per $200 of value, which increases to $18 per $200 of value for a vehicle priced above $150,000.
Stamp duty fees for low emission and hybrid vehicles remain at the same $8.40 per $200 of value, although there is no price cap for these purchases, which extends to primary producer vehicles, utes, commercial vans and motorbikes.
Western Australia’s stamp duties are determined by the value of the vehicle, with purchases up to $25,000 charged a stamp duty fee of 2.75 per cent.
A vehicle purchased between $25,000 - $50,000, however, is charged the same 2.75 per cent rate up to $25,000, with another fee added on to the value above $25,000.
Stamp duty on a new car purchased in Western Australia priced over $50,000 is calculated by a 6.5 per cent fee on the purchase price.
South Australia calculates stamp duty fees on a new car at a rate of $4 per $100 of value, with an extra $60 fee applied to purchases above $3,000, with the government charging commercial vehicles $3 per $100 of value.
Stamp duty fees in Tasmania are calculated at a rate of $3 per $100 of value, up to a threshold of $34,990.
Any purchases above this are charged at $11 per $100 of value up to $39,990, with an additional one-off fee of $1,050 added to the price.
For vehicles priced above $40,000 in Tasmania, the state government collects stamp duty at a rate of $4 per $100 of value.
Australian Capital Territory
The Australian Capital Territory (ACT) divides stamp duty rates into both price and engine categories, otherwise known as ‘classes’ that range from A-D, which provide incentives for the purchase of a hybrid or battery-electric vehicle.
A-Class vehicles do not have to pay any stamp duty fees in the ACT, while class B, C and D vehicles pay $1, $3 and $4 per $100 of value respectively for stamp duty, up to $45,000.
Anything over $45,000 is charged $2 per $100 of value for a B-Class vehicle, $5 per $100 for a C-Class vehicle, and $6 per $100 for a D-Class vehicle, atop one-off fees of $450, $1350 and $1800 respectively.
The Northern Territory government has set stamp duty rates at 3 per cent of a vehicle’s purchase price, alongside a one-off $18 transfer fee.
When Will I Not Have to Pay Car Stamp Duty?
There are a number of concessions and ways to avoid paying stamp duty on the purchase of a new or used car, including those on offer for owners of certain plug-in hybrid or battery-electric vehicles, as well as concessions for pensioners and veterans.
To find out more about these, we’d encourage you to visit your State or Territory’s online stamp duty calculator that will inform you of any available concessions.