Motor vehicle duty - frequently asked questions
- Why have I received an assessment?
- I have already paid duty – why am I required to pay more?
- I bought my vehicle cheaply because it was damaged – why do I have to pay more duty?
- Why didn’t VicRoads tell me that the declared value of my vehicle was not acceptable and that I was underpaying duty?
- How does the State Revenue Office determine the dutiable value of a vehicle?
- What if I disagree with the assessed value?
- How do I pay my assessment?
Duty is payable on the purchase price or the market value of the vehicle, whichever is the greater. This is the dutiable value of your vehicle.
You received an assessment because the value you declared on the Application for transfer of registration form lodged with VicRoads was substantially lower than the market value of the average vehicle of the same year, make, and model as yours.
If you under-declared the dutiable value of your vehicle, you would have underpaid motor vehicle duty. Your assessment is for duty on the difference between the market value and the value you declared.
This is because the dutiable value of a vehicle is determined when you lodge the transfer documents with VicRoads, and not when you bought it.
If your vehicle was improved between buying and registering it, such as through repairs/modifications to obtain a roadworthy certificate, you must take these changes into account when declaring its dutiable value.
Why didn’t VicRoads tell me that the declared value of my vehicle was not acceptable and that I was underpaying duty?
The transfer documents that are required to be completed and lodged at VicRoads include information on motor vehicle duty and ‘market or dutiable value’. As you are making the declaration of dutiable value, it is not the responsibility of VicRoads officers to determine, and/or question, what is or is not an acceptable dutiable value.
We use the value from a reputable motor industry valuation guide and discount it because your vehicle may be in a below-average condition. This means that the value used in your assessment is actually lower than the average value range for your vehicle.
You have the right to object to your assessment. Your objection must be done in writing, and lodged with us within 60 days of you receiving the assessment. It must state fully and in detail the reasons why your vehicle is worth less than the average vehicle of the same year, make, model e.g. the physical condition of the vehicle at the time of registration or transfer and the kilometres travelled.
Note: Lodging an objection does not affect your obligation to pay the amount on your assessment by the due date.
You can pay your assessment through BPAY, EFT, or by credit card. Refer to your assessment notice for further information. Payment cannot be made at VicRoads.