Stamp duty on cars in Australia: what buyers and sellers need to know

# Stamp duty on cars in Australia: what buyers and sellers need to know *This article is a general guide only and is not professional legal or financial advice. Tax rules change — always check with your state or territory revenue office, or a qualified adviser, for the current rates and rules that apply to you.* When a car changes hands in Australia, the price on the windscreen isn't the final cost. There's also stamp duty — also called transfer duty or vehicle registration duty depending on your state — and it's a cost worth understanding whether you're buying or selling. ## What is stamp duty on cars? Stamp duty on motor vehicles is a state and territory tax payable when a vehicle's registration is transferred to a new owner. It applies to private sales, dealer purchases and most other transfers of registered vehicles. In broad terms, it's calculated as a percentage of the vehicle's value, and the payable amount is generally based on the **higher of the sale price or the vehicle's assessed market value**. That "higher of" rule matters: if you sell a car cheaply to a mate, the duty may still be calculated on what the car is assessed to be worth, not the bargain price. ## Who pays it? The **buyer** — the person the vehicle is being transferred to — pays the stamp duty. It's typically paid when the new owner registers or transfers the registration into their name. Why should sellers care? Because stamp duty is part of the buyer's total cost of the car. A buyer working with a fixed budget has to cover the purchase price *plus* duty *plus* registration. Understanding this helps sellers see the full picture of what a buyer can actually afford — which is useful context when you're weighing up offers. ## How is it calculated? While the exact rules differ by state and territory, the general pattern is: 1. **Determine the dutiable value** — usually the higher of the sale price or the assessed market value of the vehicle. 2. **Apply the rate** — each state and territory sets its own rate structure. Many use a sliding scale where the rate increases with the vehicle's value, and some charge different rates for new versus used vehicles, or for more polluting vehicles. 3. **Check for thresholds and concessions** — many jurisdictions have reduced rates or exemptions for certain buyers or vehicles. Rates and thresholds **differ by state and territory and change over time**, so any specific figure you see quoted online may be out of date. For the current rates, check your state or territory revenue office directly. ## Common exemptions and concessions The details vary, but exemptions and concessions commonly exist for situations such as: - Transfers between spouses or domestic partners - Vehicles transferred as part of a deceased estate - Certain pensioner or concession-card holders (in some jurisdictions) - Vehicles for people with disabilities (modified vehicles, in some jurisdictions) - Transfers to charities or for other specific purposes Eligibility rules are specific to each state and territory — if you think you might qualify, check with your revenue office before the transfer, not after. ## What sellers should know A few practical points if you're selling: - **You don't pay the duty** — but it affects your buyer, so it affects your sale. Being aware of it makes you a more realistic seller. - **Declare the genuine sale price.** Understating the price on transfer paperwork doesn't reduce the duty (remember the "higher of" rule) and can create legal trouble. - **Keep your records.** The transfer paperwork, receipt and registration documents protect both parties if anything is queried later. - **Rego and roadworthy requirements** are separate from stamp duty but part of the same transfer process — check what your state requires at the point of sale. ## Where to check current rates Because rates, thresholds and concessions are set by each state and territory and are subject to change, the only reliable source is the relevant revenue office: - **NSW** — Revenue NSW - **VIC** — State Revenue Office Victoria - **QLD** — Queensland Revenue Office - **WA** — Revenue WA - **SA** — RevenueSA - **TAS** — State Revenue Office Tasmania - **NT** — Territory Revenue Office - **ACT** — ACT Revenue Office A quick search for your state's revenue office plus "motor vehicle duty" will get you to the current calculator or rate table. ## The bottom line Stamp duty is simply part of the cost of buying a car in Australia — paid by the buyer, calculated on the higher of price or assessed value, with rates that vary by state and territory. Sellers don't pay it, but smart sellers understand it, because it shapes what buyers can offer. And when you're ready to sell, the platform takes the guesswork out of the rest of the process. ## Sell where the dealers are List your car on Sell2Dealers AU and receive offers from verified licensed Australian dealers. You'll see genuine dealer interest in your car — and you'll have a clear picture of what it's worth before you commit to anything.

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