Motor vehicle duty
Motor vehicle duty is a tax you pay when registering a motor vehicle or transferring the registration of a motor vehicle in the ACT.
You pay motor vehicle duty when:
- you register a motor vehicle for the first time
- the registration of a vehicle transfers into your name
- you first register an imported second-hand vehicle.
You do not need to pay duty on your vehicle if you have already paid it in another State or Territory and that registration remains in your name.
Paying duty
Access Canberra collects motor vehicle duty on behalf of the ACT Revenue Office, but we process some exemptions and refunds.
You must apply to transfer your motor vehicle’s registration and pay the duty liability within 14 days of acquiring a vehicle. Access Canberra will charge a penalty fee for applications after the 14-day deadline. You can pay motor vehicle registration fees and duty at the following Access Canberra locations:
- Gungahlin
- Belconnen
- Tuggeranong
- Woden
For additional information about motor vehicle registration, please visit Access Canberra.
Amount of duty
The amount of duty payable depends on the type of vehicle you have and its dutiable value – the higher of the purchase price and the market value of the vehicle. Please note, this value includes the goods and services tax (GST) and the luxury car tax (LCT), if applicable.
Vehicle Emission Reduction Scheme
The Vehicle Emission Reduction Scheme (the Scheme) is an environmental initiative of the ACT Government aimed at reducing carbon dioxide (CO2) emissions emitted by the transport sector. The Scheme applies to new cars, motorcycles, utilities vehicles, and light commercial vehicles, and provides financial incentives for those people purchasing vehicles with lower operating emissions.
The Australian Government’s Green Vehicle Guide sets out the CO2 emissions for different vehicles. Based on these emission levels, new vehicles receive a Vehicle Performance Rating of A, B, C or D.
Zero Emissions Vehicle Strategy
The ACT Government’s Zero Emissions Vehicle (ZEV) Strategy 2022 sets to make ZEVs an affordable option for Canberrans in the years to come. As part of the Strategy, nil motor vehicle duty is payable for buyers of used ZEVs (electric vehicles and hydrogen vehicles) purchased on or after 1 August 2022.
This means both new and used ZEVs (including motorcycles) purchased on or after 1 August 2022 are exempt from motor vehicle duty.
Used hybrid vehicles
From 1 July 2023, second-hand hybrid electric vehicles (hybrids) and plug-in hybrid electric vehicles (PHEVs) and with tailpipe emissions of no more than 130g/km of CO2 will be subject to nil duty on establishment or transfer of the vehicle.
Used Hybrid Electric Vehicles (HEVs) and Plug‐in Hybrid Electric Vehicles (PHEVs) that are not eligible for nil duty remain as non-rated vehicles.
Motor vehicles with a Performance Rating
A Performance Rating is only provided to new motor vehicles (including motorcycles) that have not been previously registered in the ACT, in another State or Territory, or in another country. The emissions thresholds and resulting duty payable for vehicles with a Performance Rating is calculated in accordance with tables 1 and 2 below.
Under the Scheme, new light vehicles will be provided a Performance Rating of A, B, C or D based on their CO2 emissions (grams emitted per kilometre, Table 1). ‘New’ motor vehicles include demonstrator vehicles that licensed dealers dispose of within one year of the date the vehicle was first registered in the ACT, but excludes demonstrators registered outside the ACT.
Motor vehicles with no 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. This includes motorcycles (other than ZEVs) that have been previously registered.
Motorcycles
Motorcycles generally have lower emissions than cars but they are not covered by the Green Vehicle Guide. Under the Scheme, new and used motorcycles that are ZEVs are exempt from duty. New, non-ZEV motorcycles are categorised as B-rated vehicles to match their average environmental performance. Used non-ZEV motorcycles are taken to be non-rated vehicles.
Table 1: Vehicle performance ratings under the scheme
Vehicle performance rating | Description | Carbon dioxide (CO2) emissions in grams per kilometre (g/km) |
---|---|---|
A | Environmental leading-edge models | 0–130 |
B | Models with significantly above-average environmental performance | 131–175 |
C | Models with average environmental performance | 176–220 |
D | Models with below-average environmental performance | 221 and above |
Table 2: Duty amounts payable - before 1 July 2023
Vehicle | Duty amount payable for vehicles valued below $ 45,000 | Duty amount payable for vehicles valued at $45,000 or more |
---|---|---|
A - New and used ZEV | $ nil | $ nil |
B - New non-ZEV motorcycle | $1 for every $100, or part of $100, of the dutiable value. | $450, plus $2 for every $100, or part of $100, of the dutiable value in excess of $45,000. |
C - Non-rated vehicles (other than a used ZEV) | $3 for each $100, or part of $100, of the dutiable value. | $1,350, plus $5 for every $100, or part of $100, of the dutiable value in excess of $45,000. |
D | $4 for each $100, or part of $100, of the dutiable value. | $1,800, plus $6 for every $100, or part of $100, of the dutiable value in excess of $45,000. |
Table 3: Duty amounts payable - on or after 1 July 2023
Vehicle | Duty amount payable for vehicles valued below $ 45,000 | Duty amount payable for vehicles valued at $45,000 or more |
---|---|---|
A | $ nil | $ nil |
B | $1 for every $100, or part of $100, of the dutiable value. | $450, plus $2 for every $100, or part of $100, of the dutiable value in excess of $45,000. |
Non-rated vehicles (other than used ZEV, used eligible hybrid or used eligible PHEV) | $3 for every $100, or part of $100, of the dutiable value. | $1,350, plus $5 for every $100, or part of $100, of the dutiable value in excess of $45,000. |
C | $3.05 for each $100, or part of $100, of the dutiable value. | $1,370.50, plus $5.11 for every $100, or part of $100, of the dutiable value in excess of $45,000. |
D | $4.25 for each $100, or part of $100, of the dutiable value. | $1,910.60, plus $6.82 for every $100, or part of $100, of the dutiable value in excess of $45,000. |
Motor vehicle duty calculator
To estimate your duty liability, please use the calculator below. Please note this calculator serves as a guide only.
Exemptions and refunds
Some exemptions and refunds for motor vehicle duty are processed by us instead of Access Canberra.
Exemptions
To determine whether you’re eligible for a duty exemption, and whether we or Access Canberra process the exemption, see the latest version of Revenue Circular Motor Vehicle Registration Duty DAA005.9.
Refunds
Apply to us directly for motor vehicle duty refunds or exemptions by completing the Motor Vehicle Duty SmartForm. You need to attach copies the following to your refund application:
- the reason for the motor vehicle duty refund
- the contract to purchase the vehicle
- the registration certificate
- the cancellation certificate (if required)
- any other supporting documents, such as your proof of payment.
For a refund requested by a dealership on behalf of a taxpayer, please also include a completed Authority to Act form along with the items listed above.