How Much Are Government Charges on a Used Car?

Buying a used car in Australia is not that different from buying a new car, in that there are government charges that may apply. These include stamp duty, transfer fees, and possibly luxury car tax (LCT). The rate varies across all States and Territories and is calculated either on the purchase price or the market value of the vehicle. Understanding these costs is essential for budgeting and avoiding surprises.

Victoria

In Victoria, the most significant government charge on a used car is stamp duty. As of 2024, the rates are:

• For vehicles valued up to $80,567: The stamp duty rate is $8.40 per $200 of the vehicle’s value.
• For vehicles valued between $80,567.01 and $100,000: The rate increases to $10.40 per $200 of the vehicle’s value.
• For vehicles valued between $100,000.01 and $150,000: The rate increases to $14 per $200 of the vehicle’s value.
• For vehicles valued over $150,000: The rate increases to $18 per $200 of the vehicle’s value.

The above figures apply to standard passenger cars. For green passenger cars and all non-passenger vehicles (including motorcycles) the rate is $8.40 per $200, regardless of value.

New South Wales

In New South Wales (NSW), stamp duty is also based on the value of the car:

• For vehicles valued up to $44,999: The rate is $3 per $100 of the vehicle’s value.
• For vehicles valued at $45,000 and more: The rate is $1,350 plus $5 per $100 for the value exceeding $45,000.

Queensland

Queensland calculates stamp duty differently, using rates based on the vehicle’s engine type:

• For hybrid and electric vehicles: The rate is $2 per $100 of the vehicle’s value.
• For 1 to 4-cylinder and 2-rotor vehicles: The rate is $3 per $100 of the vehicle’s value.
• For 5 to 6-cylinder and 3-rotor vehicles: The rate is $3.50 per $100 of the vehicle’s value.
• For 7 or more cylinders: The rate is $4 per $100 of the vehicle’s value.

The rate per $100 increases for vehicles with a dutiable value over $100,000.

South Australia

South Australia uses a tiered system for stamp duty based on the vehicle’s value:

• For vehicles valued up to $1,000: The rate is $1 per $100 of the vehicle’s value, with a minimum of $5.
• For vehicles valued between $1,001 and $2,000: The rate is $10 plus $2 per $100 for the value exceeding $1,000.
• For vehicles valued between $2,001 and $3,000: The rate is $30 plus $3 per $100 for the value exceeding $2,000.
• For vehicles valued over $3,000: The rate is $60 plus $4 per $100 for the value exceeding $3,000.

Western Australia

Western Australia (WA) uses a sliding scale to calculate stamp duty:

• For vehicles valued up to $25,000: The rate is 2.75% of the vehicle’s value.
• For vehicles valued between $25,000 and $50,000: The rate is based on the following formula – R% of the dutiable value, where R = [2.75 + ((dutiable value – 25,000)/ 6,666.66)] rounded to 2 decimal places.
• For vehicles valued over $50,000: The rate is 6.5% of the vehicle’s value.

Tasmania

In Tasmania, the stamp duty rates are:

• For vehicles valued up to $600: $20 flat fee.
• For vehicles valued between $601 and $35,000: $3 per $100 of the vehicle’s value.
• For vehicles valued between $35,001 and $40,000: $1,050 plus $11 per $100 for the value exceeding $35,000.
• For vehicles over $40,000: $4 per $100 of the vehicle’s value.

Australian Capital Territory

The Australian Capital Territory (ACT) uses a tiered system based on emissions ratings and vehicle value, but currently only provides rates for new vehicles.

Northern Territory

In the Northern Territory (NT), stamp duty is a flat 3% of the purchase price.

When buying from a dealer, one advantage is that they handle government charges on your behalf, eliminating the need for you to calculate them. At Davey Motor Group, most vehicles are listed with a “Drive Away” price, which includes all Government charges. For non-passenger vehicles, the listed price can exclude government charges, but this is always clearly indicated. This ensures there are no unpleasant surprises when buying a used car from us.