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.
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.
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|
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|
|Divide by relevant dividing factor||1.042||1.042||1.052||1.042||1.052|
|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).