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).
