Drive-away deals 2025–26
Duty rates and examples for drive-away vehicle sales.
Calculating duty for drive-away deals
Motor vehicle duty under the Duties Act 2000 depends on the dutiable value of a motor vehicle.
This page explains how to calculate the dutiable value of new and used motor vehicles sold as part of a drive-away deal. These calculations apply to registrations and transfers on or after 1 July 2025.
The calculations include:
- 2025–26 Victorian Transport Accident Commission charges
- 2025–26 fees under the Road Safety Act 1986.
Licensed motor car traders (LMCTs) must include these amounts when selling motor vehicles under a drive-away deal.
The rate of motor vehicle duty applied to a new or used passenger car depends on its dutiable value and the Commonwealth luxury car tax threshold. For the 2025–26 financial year, the threshold is $80,567.
Green passenger cars and primary producer passenger cars are subject to a flat rate of duty.
See the current motor vehicle duty rates.
The motor vehicle duty calculator does not apply to drive‑away deal prices. You must calculate the dutiable value separately using this page before using the calculator.
New vehicles
To calculate the dutiable value of a new passenger vehicle bought under a drive-away deal:
- Start with the drive-away deal price.
- Subtract the standard registration cost.
- Divide the remaining amount by the relevant dividing factor shown in the table below.
The result is the dutiable value used to calculate motor vehicle duty.
Use the registration costs listed in the table even if the actual registration costs for the vehicle are less.
| Drive-away deal price (including registration) | Registration or transfer costs to be deducted | Dividing factor to convert drive-away deal price to dutiable value |
|---|---|---|
| $0–$84,925 | $973.70 | 1.042 |
| $84,925.01–$106,174 | $973.70 | 1.052 |
| $106,174.01–$161,474 | $973.70 | 1.07 |
| More than $161,474 | $973.70 | 1.09 |
Follow the same steps for new green passenger cars and new primary producer passenger cars.
| Vehicle type | Drive-away deal price (including registration) | Registration or transfer costs to be deducted | Dividing factor to convert drive-away deal price to dutiable value |
|---|---|---|---|
| New green passenger | No price threshold | $855.10 | 1.042 |
| New primary producer passenger | No price threshold | $973.70 | 1.042 |
Used vehicles
To calculate the dutiable value of the used passenger vehicle bought under a drive-away deal:
- Start with the drive-away deal price.
- Subtract the transfer fee.
- Divide the remaining amount by the relevant dividing factor show in the table below.
The result is the dutiable value used to calculate motor vehicle duty.
Former demonstrator vehicles
Former demonstrator vehicles attract the same rate of duty as the used passenger cars set out in the table below.
| Drive-away deal price (including registration) | Registration or transfer costs to be deducted | Dividing factor to convert drive-away deal price to dutiable value |
|---|---|---|
| $0–$83,997 | $46.20 | 1.042 |
| $83,997.01–$105,246 | $46.20 | 1.052 |
| $105,246.01–$160,546 | $46.20 | 1.07 |
| More than $160,546 | $46.20 | 1.09 |
Follow the same steps for used green passenger cars and used primary producer passenger cars.
| Vehicle type | Drive-away deal price (including registration) | Registration or transfer costs to be deducted | Dividing factor to convert drive-away deal price to dutiable value |
|---|---|---|---|
| New green passenger | No price threshold | $46.20 | 1.042 |
| New primary producer passenger | No price threshold | $46.20 | 1.042 |
Calculation anomaly
A mathematical anomaly can occur for passenger cars with a drive-away deal price within certain ranges.
In these ranges, the calculation method on this page can produce a dutiable value below the threshold for the relevant duty rate.
Where this occurs, we apply duty as follows:
| New passenger car | Used passenger car | Rate of duty per $200 or part thereof |
|---|---|---|
| $84,925.01–$85,731 | $83,997.01–$84,803 | $8.40 |
| $106,174.01–$107,974 | $105,246.01–$107,046 | $10.40 |
| $161,474.01–$164,474 | $160,546.01–$163,546 | $14.00 |
Example calculations for dutiable value of drive-away deals
| 1. New passenger car | 2. New green passenger car | 3. New passenger car | 4. Used passenger car | 5. Used passenger car | |
|---|---|---|---|---|---|
| Drive-away deal price | $19,999 | $54,500 | $73,000 | $19,999 | $99,000 |
| Minus registration/transfer costs | $973.70* | $855.10* | $973.70* | $46.20 | $46.20 |
| Equals | $19,025.30 | $53,644.90 | $72,026.30 | $19,952.80 | $98,953.80 |
| Divide by relevant dividing factor | 1.042 | 1.042 | 1.042 | 1.042 | 1.052 |
| Dutiable value | $18,258.45 | $51,482.63 | $69,123.13 | $19,148.56 | $94,062.55 |
| Rounded up to the nearest $200 | $18,400 | $51,600 | $69,200 | $19,200 | $94,200 |
*The registration costs for new vehicles are based on 12-month motor vehicle registration costs for passenger cars in the high-risk zone (code 101).