As part of the 2019-20 Victorian Budget, the Treasurer announced increases in motor vehicle duty rates for luxury passenger cars valued over $100,000.
The new rates came into effect on 1 July 2019 and apply to all vehicle transfers and registrations on or after this date. The rates apply to new and used passenger cars and are:
- $14 per $200 or part thereof for passenger cars valued over $100,000 to $150,000.
- $18 per $200 or part thereof for passenger cars valued over $150,000.
If a purchaser contracted to buy a luxury passenger car valued over $100,000 before the 27 May 2019 Budget but it was delivered and registered after 30 June 2019, it attracts the new rates of motor vehicle duty.
The Treasurer has, however, approved limited transitional relief for vehicles where there has been an unavoidable delay in registering or transferring them.
- For new cars, this might include a contract of sale for a vehicle that has not yet arrived in Australia or one held up by a delay in clearing Customs.
- For used cars, this might include a delay in obtaining a certificate of roadworthiness because repairs or spare parts were needed.
Transitional relief allows duty to apply at the rates applicable to vehicles registered before 1 July 2019.
Applying for relief
You must apply for transitional relief in writing.
Your application must include:
- A written statement from the purchaser explaining why the vehicle could not reasonably be registered in their name before 1 July 2019 and stating that no adjustment to the contract price was negotiated because of the increase in duty.
- Evidence that the purchaser contracted to buy the vehicle before 27 May 2019 being:
- For dealer sales — a copy of the contract of sale with proof of deposit paid.
- For private sales — a copy of the receipt with proof of deposit paid.
- Evidence as to why the vehicle could not be registered before 1 July 2019, for example:
- For delayed delivery, this could be a statement from the vehicle dealer or importer advising of a shipping delay.
- For delayed registration, this could be a statement from the vehicle repairer that the certificate of roadworthiness could not be obtained earlier because of a lack of parts.
Licensed motor car traders
If you are lodging vehicle registration application forms with VicRoads on behalf of customers, you must apply at the same time as you lodge the forms, including all required documents.
If your car has been registered and duty paid at the new rates, you can apply to us for a refund. Your refund application must include all required documents.
Contact us online with the subject line 'Motor Vehicle Duty Exemption/Refund'.
Mail all your documentation to:
State Revenue Office
GPO Box 1641
Melbourne VIC 3001
State Revenue Office