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Publication-D01-19

The amount of motor vehicle duty that has to be paid under the Duties Act 2000 depends on the dutiable value of a motor vehicle.

To calculate the dutiable value of new and used motor vehicles sold as part of a drive-away deal, where the date of registration or transfer of registration is on or after 1 July 2019, use these guidelines.

They take into account the 2019-20 Victorian Transport Accident Commission charges and 2019-20 fees under the Road Safety Act 1986 that affect licensed motor car traders (LMCTs) selling motor vehicles on a drive-away deal basis. They also take into account the new motor vehicle duty rates announced in the 2019-20 Victorian Budget.

The rate of motor vehicle duty applied to a new or used passenger car, other than a green passenger or primary producer passenger car, depends on its dutiable value and the Commonwealth luxury car tax threshold, which is $67,525 for the 2019-20 financial year. 

Motor vehicle duty rates 2019-20

New vehicles

New vehicles may be sold as part of a drive-away deal. In order to calculate the dutiable value of a vehicle bought under a drive-away deal, registration costs must be subtracted from the drive-away deal price with the balance divided by the relevant dividing factor (as set out in Table 1).

The registration costs listed in Table 1 are to be used, irrespective of whether the actual registration costs of the vehicle are less.

Used vehicles

The formula used to calculate the dutiable value for drive-away deal sales of used vehicles deducts the transfer fee, rather than the registration fees, from the drive-away deal price with the balance divided by the relevant dividing factor (as set out in Table 1).

Former demonstrator vehicles

From 1 July 2019, former demonstrator vehicles attract the same rate of duty as the used passenger cars set out in Table 1.

Please refer to Table 1 for the rates used to calculate the dutiable value of vehicles and Table 2 for examples of calculations of the dutiable value of a drive-away deal.  

If you need more information, contact us.

Table 1 - Figures used to calculate dutiable value on drive-away deals

Vehicle type Drive-away deal price (including registration) Registration or transfer costs to be deducted Relevant dividing factor to convert drive-away deal price to dutiable value
New passenger $0 - $71,234.00 $872.80 1.042
$71,234.01 - $106,073.00 $872.80 1.052
$106,073.01 – $161,373.00 $872.80 1.07
More than $161,373.00 $872.80 1.09
Used passenger $0 - $70,402.00 $40.70 1.042
$70,402.01 – $105,241.00 $40.70 1.052
$105,241.01 - $160,541.00 $40.70 1.07
More than $160,541.00 $40.70 1.09
New green passenger No price threshold $772.80 1.042
Used green passenger No price threshold $40.70 1.042
New primary producer passenger No price threshold $872.80 1.042
Used primary producer passenger No price threshold $40.70 1.042

Calculation anomaly

While table 1 sets out the drive-away deal price thresholds for new passenger cars, there is a mathematical anomaly in relation to new passenger cars with a drive-away deal price in certain ranges.  

Within certain ranges, when the drive-away deal price is converted to a dutiable value, using the figures in Table 1 and the methodology in Table 2, the dutiable value is actually less than the relevant threshold for the particular rate of duty.

The State Revenue Office acknowledges that where a new passenger car drive-away deal price has been treated in accordance with these guidelines and the anomaly exists, duty applies as follows:

Drive-away deal price range Rate of duty per $200 or part thereof
$71,235.00 to $71,909 $8.40
$106,073.00 to $107,872.00 $10.40
$161,373.00 to $164,372.00 $14.00

Table 2 - 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
Less registration/transfer costs $872.80** $772.80** $872.80** $40.70 $40.70
Equals $19,126.20 $53,727.20 $72,127.20 $19,958.30 $98,959.30
Divide by relevant dividing factor 1.042 1.042 1.052 1.042 1.052
Dutiable value $18,355.28 $51,561.61 $68,561.98 $19,153.84 $94,067.77
Rounded up to the nearest $200 $18,400 $51,600 $68,600 $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).