Motor vehicle duty : VicRoads

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Motor vehicle duty

Motor vehicle duty is a tax payable when a vehicle is registered or transferred to another registered operator.

Market value
The amount of duty depends on the market value of the vehicle, which is the greater of:

  • the purchase price, or
  • the price which could be obtained in the open market.


Market value includes:

  • all fitted accessories
  • any trade-in allowance
  • the value of improvements or repairs made prior to the application to transfer or register the vehicle
  • delivery fee (on new vehicles)
  • market value on a new vehicle does not exclude any sales tax exemptions
  • any GST that is paid


Rate of duty for vehicles

Type
Category
Market Value
Calculation of Motor Vehicle Duty
Passenger Vehicles New Registration
$0 - $57,009
$5.00 per $200.00 of the market value or part thereof
Passenger Vehicles New Registration
Exceeds $57,009
$10.00 per $200.00 of the market value or part thereof
Non Passenger Vehicles & Motorcycles New Registration   $5.00 per $200.00 of the market value or part thereof
"Demonstrator" - passenger vehicles** Secondhand registration or transfer of registration  All values Applicable new car rate.
All other Vehicles Secondhand registration or transfer of registration   $8.00 per $200.00 of the market value or part thereof


On 1 May 2007, the motor vehicle duty rates on some new cars were revised. See 'Revised stamp duty rates for new cars from 1 May 2007' for further details.

* New registration rates are applicable upon the registration of a motor vehicle that has not previously been registered in Victoria or elsewhere.

**A vehicle is a "demonstrator" if:

  • it is a passenger vehicle registered as a new vehicle in the name of an LMCT; and
  • no duty has been paid on or since the initial registration, and
  • the vehicle is acquired within 60 days of the initial registration.


    Motor vehicle duty is not payable where:

        Some circumstances where motor vehicle duty is not payable are when:

  • an applicant for re-registration is the last registered operator of a vehicle and the vehicle was registered in Australia
  • the transfer of registration is to a beneficiary of a deceased estate
  • the transfer of registration is between domestic partners
  • the transfer of registration is for a light trailer
  • the vehicle is a special vehicle, special purpose vehicle, tractor (FN or PSV), trailer (TF or HT 1-2 or 3) or item of agricultural equipment to be registered, re-registered or transferred to a primary producer.


View the full list of circumstances relating to the exemption from paying motor vehicle duty [PDF 59kb]


Call VicRoads on 13 1171 (Mon-Fri 8.30am - 5.00pm, Sat 8.30am - 2.00pm) for details about special conditions that apply to motor vehicle duty for:

  • wheelchair accessible taxis
  • ex-Club Permit vehicles