Duty is payable under the Duties Act 1999 (the Act) on an application to register a motor vehicle or to transfer its registration.
However, no duty is payable if the registration is in the same name as the person who was the registered vehicle operator in another state or a territory, and duty was paid in that state or territory in respect of the registration of that vehicle.
From 1 July 2016 new motorcycles in the Vehicles Emission Reduction Scheme (the scheme) will be assigned a Vehicle Performance Rating in category B.
Duty is calculated and payable on the dutiable value of a motor vehicle, which includes the Goods and Services Tax (GST).
Vehicle Emission Reduction Scheme
The Scheme is an important way to make our city more livable by reducing carbon dioxide emissions from the transport sector and reducing the costs of purchasing new low emission vehicles through a different duty scheme.
Moving to the scheme will enable ACT Road Transport Authority to continue determining the rate of duty applicable to each new model of vehicle released to the market based on information from the Federal Government’s Green Vehicle Guide.
Motor vehicles with a Vehicle Performance Rating
A Vehicle Performance Rating only applies to a new motor vehicle (including motorcycles) that have not previously been registered under:
a) the Road Transport (Vehicle Registration) Act 1999 or another Territory law; or
b) a law of the Commonwealth, a State, another Territory or a foreign country.
The duty payable for vehicles with Vehicle Performance Rating is calculated in accordance with Tables 1, 2 and 3 below.
Under the scheme, all new light vehicles will continue to have a performance rating of A, B, C or D. The scheme allocates vehicles a performance rating based on their CO2 emissions, showing grams (g) emitted per kilometer (see Table 1).
For the purposes of the Disallowable Instrument that determines Amounts Payable – Motor Vehicle Duty;
- A new motor vehicle includes a demonstrator disposed of by a licensed vehicle dealer within one year of the date the demonstrator was first registered in the ACT; and
- Excludes demonstrators registered outside the ACT from the meaning of new motor vehicle.
Motor vehicles with no Vehicle Performance Rating
Non-rated vehicles are those that are currently registered or have previously been registered, or those that are not rated under the Green Vehicle Guide. The duty payable for these vehicles is the same rate of duty as C-rated motor vehicles in Table 2 below. This includes motorcycles that have been previously registered.
Table 1 Vehicle performance ratings under the scheme
CO2 emissions: grams emitted per km
|Environmental leading edge models||0-130|
|Models with environmental performance significantly above average||131-175|
|Models with average environmental performance||176-220|
|Models with below average environmental performance||More than 220|
Table 2 Amounts Payable for s208 (1)
Table 2 lists the amount payable under s208 (1) of the Act, which applies to all motor vehicles not included in Table 3.
|Vehicle Performance Rating for s208 (1) of the Act||Amount Payable|
|B-rated vehicle||$1 for every $100, or part of $100, of the dutiable value of the motor vehicle|
|C-rated vehicle and non-rated vehicle||$3 for each $100, or part of $100, of the dutiable value of the motor vehicle|
|D-rated vehicle||$4 for each $100, or part of $100, of the dutiable value of the motor vehicle|
Table 3 Amounts Payable for s208 (2)*
Table 3 lists the amount payable under s208 (2) of the Act, which applies to vehicles valued at more than $45,000. (or another amount if that amount is determined under the Taxation Administration Act 1999, section 139).
|Vehicle Performance Rating for s208 (2) of the Act|
Motor vehicle valued at $45,000 or more
|B-rated vehicle||$450, plus $2 for each $100, or part of $100, of the dutiable value of the motor vehicle that is more than $45,000|
|C-rated vehicle and non-rated vehicle||$1,350, plus $5 for each $100, or part of $100, of the dutiable value of the motor vehicle that is more than $45,000|
|D-rated vehicle||$1,800, plus $6 for each $100, or part of $100, of the dutiable value of the motor vehicle that is more than $45,000|
* Table 3 does not apply to vehicles listed in s 208 (2) (b) of the Act (including motorcycles).
For further information regarding the administration and payment of duty on the registration or transfer of registration of a motor vehicle, refer to Revenue Circulars DAA005.5 [RTF, 416Kb], [PDF,636Kb] and DAA009.2 [RTF, 255Kb], [PDF,155Kb].
The Road Transport (Vehicle Registration) Act 1999 provides that a person who purchases a vehicle is required to transfer the registration within 14 days of purchase. Compliance activities include checking motor registry data and private sales to ensure correct dutiable values are declared.
Documents required on lodgement
The purchaser must give to the Road Transport Authority their details, details of the vehicle purchased and a notice of disposal from the former owner. You should be aware that giving false or misleading information is a serious offence.
Motor vehicle duty refunds
Motor vehicle duty refunds are processed and refunded to taxpayers requesting a refund of overpaid stamp duty on a motor vehicle. The Taxation Administration Act 1999 allows for a refund application for the overpayment of stamp duty to be refunded to a taxpayer.
For motor dealerships requesting a refund of overpaid stamp duty on behalf of a taxpayer, a completed Authority to Act form will be required to be submitted in addition to all other relevant refund documents, including:
- Written request stating reason for refund of motor vehicle duty;
- Contract to purchase the vehicle;
- Registration certificate;
- Cancellation certificate (if required);
- Any other supporting documents. (ie. Proof of payment)
- Circular DAA009.2
- Authority to Act form [RFT, 313Kb], [PDF, 414Kb]
- Calculator - Motor vehicle registration duty
- Green Vehicle Guide (external site)
- Circular DAA005.5 [RTF, 416Kb], [PDF,636Kb]
- Duties Act 1999 (external site)
- Road Transport (Vehicle Registration) Act 1999 (external site)
- Disallowable Instrument DI2016-144 (external site)