Publication-D01-22
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.
Use these guidelines 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 2022.
They take into account the 2022-23 Victorian Transport Accident Commission charges and 2022-23 fees under the Road Safety Act 1986 that affect licensed motor car traders (LMCTs) selling motor vehicles on a drive-away deal basis.
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 $71,849 for the 2022-23 financial year.
Motor vehicle duty rates 2021-22
New vehicles
In order to calculate the dutiable value of a new passenger 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
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 - $75,770.00 | $903.60 | 1.042 |
| $75,770.01 - $106,104.00 | $903.60 | 1.052 | |
| $106,104.01 – $161,404.00 | $903.60 | 1.07 | |
| More than $161,404.00 | $903.60 | 1.09 | |
| Used passenger | $0 - $74,909.00 | $42.00 | 1.042 |
| $74,909.01 – $105,242.00 | $42.00 | 1.052 | |
| $105,242.01 - $160,542.00 | $42.00 | 1.07 | |
| More than $160,542.00 | $42.00 | 1.09 | |
| New green passenger | No price threshold | $803.60 | 1.042 |
| Used green passenger | No price threshold | $42.00 | 1.042 |
| New primary producer passenger | No price threshold | $903.60 | 1.042 |
| Used primary producer passenger | No price threshold | $42.00 | 1.042 |
Calculation anomaly
While Table 1 sets out the drive-away deal price thresholds for new and used passenger cars, there is a mathematical anomaly in relation to 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 SRO acknowledges that where a 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 | |
|---|---|---|
| New passenger car | Used passenger car | |
| $75,770.01 to $76,489.00 | $74,909.01 to $75,628.00 | $8.40 |
| $106,104.01 to $107,904.00 | $105,242.01 to $107,042.00 | $10.40 |
| $161,404.01 to $164,404.00 | $160,542.01 to $163,542.00 | $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 | $903.60* | $803.60* | $903.60* | $42.00 | $42.00 |
| Equals | $19,095.40 | $53,696.40 | $72,096.40 | $19,957.00 | $98,958.00 |
| Divide by relevant dividing factor | 1.042 | 1.042 | 1.052 | 1.042 | 1.052 |
| Dutiable value | $18,325.72 | $51,532.05 | $68,532.70 | $19,152.59 | $94,066.54 |
| 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).
