Stamp Duty on Motor Vehicles

Who is affected ?

Any person or firm applying to register or transfer the registration of a motor vehicle.

What is involved ?

Stamp Duty is payable on an Application to Register a new vehicle or an Application to Transfer the Registration of a second hand motor vehicle and is payable by the person or firm applying to have the vehicle registered or transferred into their name. Stamp duty is payable at the time of registration (or transfer of registration) to the Registrar of Motor Vehicles (TransportSA). Stamp duty is calculated on the value of the motor vehicle, which must be declared on the Application.

Where a motor vehicle forms part of the assets in a contract for the sale or purchase of a business, the Stamp Duty payable is assessed at the time the contract is submitted to RevenueSA for stamping.

Rate of Stamp Duty

The rate of duty is based on the value of the vehicle and is shown in the following table.

Different rates apply according to whether a vehicle is classified as being a private or a commercial vehicle.  A commercial motor vehicle is generally considered to be one that is adapted for the carriage of goods and includes a utility and a prime mover.

On-line calculator for Private Vehicles
On-line calculator for Commercial Vehicles

How do I work out the value of the motor vehicle?

New motor vehicles

The value of a new motor vehicle is the recommended retail price or manufacturer's list price (including GST) issued by the manufacturer. This value will be applicable for all motor vehicles of the same make and model at a given date.

Used motor vehicles

The value of a second hand motor vehicle is calculated on the higher of either the purchase price or the market value. The applicant must declare the value of the motor vehicle as at the date of the Application for Registration or Application for Transfer of Registration.

The onus is on the person making the declaration to ensure that the value stated is a true representation of the value of the motor vehicle. Industry bodies such as the Motor Trade Association and the RAA can provide assistance when determining the value of a motor vehicle. RevenueSA does not provide any valuation services.

Damaged motor vehicles

Prior to August 1997, RevenueSA accepted payments of stamp duty in relation to damaged motor vehicles. Applications (for Registration or Transfer of Registration) were lodged with RevenueSA and stamp duty paid on the value of the motor vehicle at the time. This was done prior to the lodgement of the Application for Registration (or Transfer of Registration) with TransportSA. A number of queries in relation to this practice resulted in the clarification of the Act in relation of the payment of stamp duty.

RevenueSA DOES NOT accept the payment of stamp duty for any Applications for Registration or Transfer of Registration of a damaged motor vehicle. Stamp duty on the registration or transfer of registration of a motor vehicle must be paid at the time of lodging the Application for Registration or Application to Transfer the Registration with TransportSA.

Other useful information

Optional Equipment

In the case of a new motor vehicle, the value of any additional equipment or features not included by the manufacturer in the list price may or may not need to be added to the list price for calculating stamp duty.

The Act specifically identifies two items of optional equipment as being dutiable - "power steering" and "a particular type of transmission" (automatic transmission). In general terms, power steering and automatic transmission are included in the list price of most new motor vehicles and therefore attract stamp duty.

Where additional equipment or features are part of the vehicle as it is released to the public, the list price includes these items. Therefore, stamp duty is payable on the total value of the motor vehicle, including the additional equipment/features, as set by the manufacturer (see example below).

Example

A customer purchases a new vehicle for $44,000.
This vehicle comes with the following features:

• Automatic Transmission
• Air Conditioning
• Cruise Control
• Rear Spoiler
• Sports Steering Wheel
• CD Player

Because the vehicle is released by the manufacturer with this additional equipment, stamp duty is payable on the total value of the car - including the equipment.

Where additional equipment or features are added to the motor vehicle and were not originally included in the list price as specified by the manufacturer, the value of these items is NOT required to be taken into consideration for the purposes of calculating stamp duty.

Example

A customer purchases a new vehicle for $30,000.
This amount is made up of the following:

• List price $27,500
• Automatic Transmission $2,500

The customer asks the dealer for the following items to be added to the car prior to taking delivery:

• Air Conditioning $2,500
• Tow Bar $150

The air conditioning and tow bar are added by the dealer are not part of the standard vehicle as issued by the manufacturer and are therefore not included in the calculation of stamp duty.

Trade-ins to be declared for stamp duty, negotiated prices to take into account trade-ins or any other special deals cannot be deducted from the purchase price of the motor vehicle.

New vehicle / fleet discounts

When a special run-out list price is issued by the manufacturer (not an individual dealer or small group of dealers), the run-out list price can be used for the purposes of calculating stamp duty.

Where a dealer or a small group of dealers issues a run-out list price, the original list price, as issued by the manufacturer must be used as the value for the calculation of stamp duty.

Discounts given by motor vehicle manufacturers to their staff and discounts given to fleet buyers are not considered to be reductions in the list price of the motor vehicle. Under these circumstances, the list price, as applicable to the general public, must be used to calculate the stamp duty payable.

Exemptions

There are various exemptions from stamp duty on an Application to Register or Application to Transfer the Registration of a Motor Vehicle. To claim the majority of these exemptions, you can simply provide the necessary documentary evidence to TransportSA when registering your motor vehicle.

There may be some circumstances by which you will not be able to claim an immediate exemption and you will need to provide a written application to RevenueSA and provide additional information. Please contact TransportSA or RevenueSA for further information.

Exemptions in respect of an application to register or an application to transfer the registration of a motor vehicle exist for:

• A licensed motor vehicle dealer
• Stamp duty that has been previously paid in another State or Territory
• Motor vehicles that can be registered without fee (as approved by the Registrar of Motor Vehicles)
• A trailer (that is not a heavy vehicle within the meaning of the Motor Vehicles Act 1959)
• Motor vehicles that are assets held on behalf of the Crown
• Stamp duty that has already been paid as part of another instrument (eg. sale of business)
• Motor vehicles that are dispersed pursuant as part of an estate
• Motor vehicles repossessed pursuant to a hire-purchase agreement
• A bus (within the meaning of the Act)
• Local council motor vehicles (pursuant to Part 13 of the Local Government Act 1934)
• Motor vehicles conditionally registered under Sections 25 of the Motor Vehicles Act 1959
• Motor vehicles entitled to be registered at a reduced fee under Section 38 of the Motor Vehicles Act 1959
• A person who is incapacitated (within the meaning of the Act)
• A tractor or item of farm machinery owned by a primary producer
• Transfer between spouses or former spouses (within the meaning of the Stamp Duties Act 1923)

Stamp Duty Relief - Disability Service Providers and Incapacitated Persons

The Treasurer has approved the provision of ex-gratia relief from :

• stamp duty and fifty percent of the registration fees where a motor vehicle is registered in the name of a parent or a legal guardian on behalf of a disabled person who is under sixteen years of age (RevenueSA Circular No 264 details the administrative arrangements put in place to provide relief); and
• stamp duty where a motor vehicle is registered in the name of a not-for-profit group that is a member of the disability service provider panel and the vehicle is primarily used to transport people with disabilities (RevenueSA Circular No 267 details the administrative arrangements which provide relief).

Refunds

The Stamp Duties Act 1923 allows for a refund of stamp duty paid in relation to the registration, or transfer of the registration, of a motor vehicle where:

• Within three months after the registration or transfer, the vehicle was returned by the applicant to the person from whom it was acquired and accepted by that person; or
• The registration of transfer was made in error.

This page was last reviewed 23 June, 2008