Revised stamp duty rates for new cars from 1 May 2007 : VicRoads

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Revised stamp duty rates for new cars from 1 May 2007

From 1 May 2007, the stamp duty rates on some new cars will be revised.

Passenger vehicles up to the value of $57,009 will now have a 2.5% motor vehicle duty (stamp duty).

The changes will provide around $600 worth of savings (which represent a 40 per cent cut to stamp duty) on cars valued between $35,000 and $45,000.

In addition, all hybrid vehicles will receive a $50 discount to their annual car registration.

Motorcycles, utes, panel vans and all vehicles designed to carry more than 8 passengers will continue to attract the 2.5% stamp duty. Passenger cars over $57,009 will continue to pay 5%.


Frequently Asked Questions

Which cars are eligible for the new stamp duty rates?
All new passenger vehicles up to the value of $57,009 will now have a 2.5% motor vehicle duty (stamp duty). Motorcycles, utes, panel vans and all vehicles designed to carry more than 8 passengers will continue to attract the 2.5% stamp duty.

Passenger cars over $57,009 will continue to pay 5%.


Why are the tax cuts only for new passenger vehicles priced between $35,000 and $57,009?
The new stamp duty extends the low rate to include vehicles valued up to $57,009. This allows more hybrid vehicles as well as new, more environmentally-friendly cars to be included.

How much stamp duty will I pay when I buy a new car?

New motor vehicle duty rate scales for new cars to two rate scales

Old Scale

New Scale

Price

Duty Rate

Price

Duty Rate

Up to $35,000

2.5%

Up to $57,009

2.5%

$35,000-$45,000

4%

$57,009+

5%

$45,000+

5%


What if I buy a car on April 30 but don’t get it registered until May 1?
New vehicles registered from Tuesday 1 May 2007 will be eligible for the new stamp duty rates.


What if I buy a car on April 30?
All new cars registered before 1 May 2007 will pay the current stamp duty rate.

These rates are as follows:

Scale applicable until 30 April 2007

Price Duty Rate
$0-$35,000 2.5%
$35,000-$45,000 4%
$45,000+ 5%

What if I register a car on April 30?

All new cars registered before 1 May 2007 will pay the current stamp duty rate.

These rates are as follows:

Scale applicable until 30 April 2007

Price Duty Rate
$0-$35,000 2.5%
$35,000-$45,000 4%
$45,000+ 5%

Can I pay the new rate from May 1?
Yes. From Tuesday 1 May 2007 the new stamp duty rates will be applied to all new vehicles registered.

I intend to purchase a hybrid car – how much will I save?
The savings will depend on the sale price of your car. All cars between $35,000 and $57,009 will be charged 2.5 per cent stamp duty from 1 May 2007. In addition all hybrid vehicles will be eligible for a $50 saving of the registration fee. This reduced registration fee will also apply from 1 May.

I have already paid my registration fee at the full rate, but it wasn't due until after 1 May 2007 - am I eligible for a refund.
Yes, you are eligible for a refund. A $50 refund cheque will be mailed to you if your vehicle registration was due on or after 1 May 2007. Please note it may take up to four weeks for your refund to be issued.

From 1 May 2007 will my registration fee be automatically reduced by $50 or will I have to apply for a refund?
VicRoads is currently in the process of identifying all hybrid powered vehicles, and configuring their systems to allow registration renewals to be sent out at the reduced registration rate. In the meantime, if you have paid the registration fee at the full rate a $50 refund cheque will be mailed to you if your vehicle’s registration was due on or after 1 May 2007. Please note it may take up to four weeks for your refund to be issued.