What is Stamp Duty on a car and how much is it?

Buying a new or used car is a special moment, but one that loses its shine as you dig deeper into your pocket to fork out for the on-road costs, including stamp duty, just to have your name appear on the ownership papers.

And being a state or territory tax, there is no uniformity to stamp duty across the land.

For example, stamp duty for a $30,000 four-cylinder passenger car for private use varies between $900 to $1260 depending on the state or territory in which you reside.

There are exemptions, and you guessed it, no uniformity to them either.

Some states charge by the greenness of the car, others for the number of cylinders under the bonnet.

Stamp duty is (usually) payable on both new and used cars, but can vary – of course.

So anyway, let’s unravel the stamp duty conundrum by state and territory.

In the nation’s capital stamp duty calculation is far from straight forward, as it’s determined by the vehicle’s price and its Federal Government Green Vehicle rating.

There are four categories A, B, C and D with A being for the greenest vehicles and D the least. Any vehicle not rated by the Federal Government is classified as a Class C.

Class A vehicles are those that emit fewer than 130g/km of CO2. Class B vehicles are rated by the GVG between 131 and 175g/km. Class C is for vehicles rated between 176 and 220g/km, and Class D vehicles produce CO2 emissions above 220g/km.

For Class A vehicles sold new there is no stamp duty. For vehicles up to $44,999 Class B’s duty is $1 for every $100 or part thereof. For Class C vehicles it jumps to $3 per $100 or part thereof and you add another dollar to that for Class D vehicles.

When the price exceeds $45,000 Class B vehicles’ duty is $450 plus $2 for every $100 or part thereof in excess of the threshold. Class C vehicles incur a $1350 charge plus $5 for every $100 or part thereof in excess and Class D is a whopping $1800 plus $6 per $100 or part thereof.

Foreign countries, international organisations, diplomats and status of force agreements are exempt from stamp duty . A partial concession is given vehicles modified for a disabled person, organisations registered under the Fair Work Act, repossessed vehicles, veteran, vintage and historic vehicles, vehicles belonging to hospitals and schools or Commonwealth, States and Territories, deceased estates and transfers under certain court orders.

The government provides a helpful calculator for ease of working out what you will need to pay for purchasing a new or used vehicle within the boundaries of the ACT

Across the border from the ACT, stamp duty is based on the higher of either the price paid for the vehicle or its market value.

For vehicles less than $44,999 the rate is $3 per $100 or part thereof and over $45,000 it jumps to $5 per $100 or part thereof.

And like all states and territories, exemptions apply. This includes caravans and camper trailers as well as new trailers with a gross vehicle mass of over 4.5 tonnes.

Eligible pensioners – those with a pensioner concession card or Department of Veteran’s Affairs card are exempt from stamp duty. However you must have a NSW issued card to reap the concession benefits.

Just like the ACT, New South Wales also provides an online calculator to help buyers determine how much they’ll pay in stamp duty.

The Northern Territory calculates stamp duty at a rate of three per cent of the dutiable value of the vehicle plus a $17 transfer of ownership fee. Like each state and territory, exemptions apply and include a change of name (marriage), a gift between family members, a deceased estate, a veteran on a pension, a relationship breakdown and any agricultural or pastoral vehicle.

The NT’s online calculator simplifies the question of working out the payable stamp duty, and there are also some useful guides on the same web page.

In Queensland stamp duty is calculated by the engine type, the number of cylinders and the price you pay.

Hybrid and electric vehicles under $100,000 attract stamp duty of two dollars per $100 or part thereof and if the price exceeds one hundred thousand dollars, stamp duty doubles to $4 per $100 or part thereof for each $100 spent buying the car.

If your car has from one to four cylinders, two-rotors or is a steam vehicle (no kidding) stamp duty jumps to $3 per $100 or part thereof. If the purchase price exceeds $100,000 the stamp duty rises to $5 per $100 or part thereof.

Drivers of vehicles with five- or six-cylinder engines, or three-rotor vehicles under $100,000 must hand over $3.50 per $100 or part thereof and over $100,000 it’s $5.50 per $100 or part thereof. Owners of vehicles with engines of seven or more cylinders are hardest hit at $4 per $100 or part thereof.

There are exemptions however. These include gifting a vehicle to a family member or receiving a vehicle from a deceased estate.

Ex-service personnel are spared stamp duty and the same applies if you have lost the use of either leg, whether or not you are a service person.

If the vehicle is registered in a business name there’s no stamp duty nor does stamp duty apply in the event that a vehicle is transferred as part of a matrimonial settlement – but proof must be provided. Dealers, charities and primary producers don’t pay stamp duty.

Senior card and pensioner concession card holders receive no extra exemptions.

An important point to bear in mind with Queensland stamp duty: for any vehicle above the purchase price threshold of $100,000, the stamp duty is calculated at the higher rate for the full price, not just that component in excess of the threshold. In other words, the stamp duty on a $200,000 four-cylinder car in Queensland is $10,000 ($5 per $100), not $8000 ($3 per $100 up to $100,000 and $5 per $100 for the rest).

Queensland’s online calculator is easy to use and covers the variety of different vehicle types in the requisite detail.

South Australia imposes stamp duty on private cars based on the purchase price.

Up to $1000 it’s $1 per $100 or part thereof with a minimum charge of $5. From $1001 to $2000 it is $10 plus $2 per $100 or part thereof and from $2001 to $3000 it increases to $30 plus $3 per $100 or part thereof. Over $3001 the rate is $60 plus $4 per $100 or part thereof. The same rates apply for commercial vehicles up to $2000 and over that it’s $30 plus $3 per $100 or part thereof.

Once again there are a number of exemptions available, including disability service providers and others who regularly transport people with disabilities and incapacitations. Parents or guardians of incapacitated persons under 16 are also exempt from stamp duty as are spouses/domestic partners or former spouses or domestic partners and beneficiaries of a will.

RevenueSA hosts the state’s online calculator, which also provides answers for stamp duty unrelated to motor vehicle ownership transfer, but does feature two links for commercial and non-commercial vehicles.

Stamp duty in Tasmania is calculated on a sliding scale based on the vehicle’s market value.

Up to $600 it’s a flat $20 fee. From $600 to $34,999 it’s $3 per $100 or part thereof. From $35,000 to $39,999 it rises to a flat charge of $1050 plus $11 per $100 or part thereof. Over $40,000 the stamp duty is incurred at a rate of $4 per $100 or part thereof.

There are a number of stamp duty discounts and exemptions for those incapacitated or for a transfer between spouses, former spouses and domestic or former domestic partners.

Deceased estates are also exempt and likewise if the stamp duty has been paid in another state or territory. Buses and trailers don’t cop stamp duty, nor do government and local council vehicles, repossessed or farm vehicles or those providing transport for the disabled.

The online calculator for Tasmania also provides the above information on the same web page.

Stamp duty is determined in Victoria by whether the vehicle is new or used, passenger-carrying or non-passenger. Green cars and primary-producer passenger cars pay a flat rate of $8.40 per $200 or part thereof regardless of the price.

For others stamp duty for passenger vehicles up to $68,740 is incurred at the rate of $8.40 per $200 or part thereof. From $68,741 to $100,000 it rises to $10.40 per $200 or part thereof and increases to $14.00 for vehicles from $100,001 to $150,000. Vehicles exceeding $150,000 pay $18.00 per $200 or part thereof.

New non-passenger vehicles incur stamp duty of $5.40 per $200 or part thereof and used $8.40 per $200 or part thereof.

As with other states and territories, Victoria provides vehicle buyers an online calculator to establish how much is due on transfer of ownership.

Over in the west you almost need a PhD to figure out the stamp duty, but here goes.

Up to $25,000 it is 2.75 per cent of the dutiable value.

From $25,000 to $50,000 it is ‘R’ per cent of the dutiable value, where R = (dutiable value of 25,000) / 6666.66) rounded to 2 decimal places. In the real world this means a $35,000 vehicle incurs stamp duty of $1487.50.

Over $50,000 it’s a flat 6.5 per cent of dutiable value.

Concessions include transfer between spouses or de facto partners or transfer through a corporate reconstruction or a loan for a charitable or philanthropic purpose.

Here’s a tip, don’t even try to understand the maths; just head straight for the online calculator kindly provided by WA’s Department of Transport.