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Motor vehicle duty

Motor vehicle duty

Motor vehicle duty is duty on an application to register a motor vehicle in NSW. It must be paid when:

  • it is new and is being registered for the first time
  • registration is being transferred to another person
  • registration is issued in another name
  • an imported second hand vehicle is first registered in NSW.

The Roads and Maritime Services collects the duty for Revenue NSW.

When do I need to pay motor vehicle duty?

You need to pay duty on a motor vehicle when:

  • it is new and is being registered for the first time
  • registration is being transferred to another person
  • an imported second-hand vehicle is first registered in New South Wales.

What are the current rates?

The current rates are:

Vehicle value Rate
$0 – 44,999 $3 for every $100 (or part of $100)
$45,000 and over $1,350 plus $5 for every $100 (or part of $100)

What value is used when calculating duty?

When calculating duty we use the full value of a new vehicle, or the sale price or market value of a used vehicle.

In many cases, duty is payable on the market value of a vehicle because the sale price is not a true indication of its value, such as when:

  • a vehicle is received as a gift or won in a competition or art union

  • a vehicle is bought cheaply in a damaged or run-down condition and repaired before registration.

What is the difference between market value and sale price?

Sale price is the price you pay for a used vehicle.

Market value is the price the vehicle would bring on the open market.

How can I find out the market value of my vehicle?

If you have not bought your vehicle, you may not know its market value. You can find out the market value by:

  • consulting a dealer
  • phoning the NRMA (if you are a member) on 132 132
  • asking your insurance company
  • visiting Glass's Guides website
  • visiting Redbook website

Is Good and Services Tax included in the dutiable value?

Yes, if GST is payable on the transfer of a motor vehicle.

Is the cost of an extended warranty included in the dutiable value?

No. A premium paid for an extended warranty is not included in the dutiable value.

Is the price of a factory rebate included in the dutiable value?

Yes, when the rebate is paid directly to the purchaser or assigned by the purchaser to the dealer as a deposit. Duty should be paid on the price paid before the rebate was issued.

A factory rebate is regarded as a gift from the manufacturer.

Can I get a refund on duty paid?

You can get a refund on the duty paid if you have returned the vehicle because you are not satisfied and you returned the vehicle within 3 months of purchase (whether or not because it was faulty).

Vehicles have to be returned to the original dealer (and not traded-in with a second dealer). 

You can also get a refund if you purchase a stolen car and it is taken from you.

Last updated: 30 July 2017