Exemptions for vehicle registration duty
You pay vehicle registration duty when you register or transfer registration. You do not need to pay vehicle registration duty on a motorised wheelchair for a disabled person’s use.
For an individual or business exemption, you may be able to apply if you:
- have registered the vehicle in Queensland or interstate
- give a vehicle as a gift to a family member
- receive a vehicle from a deceased estate
- are an ex-service person
- have lost use of either leg
- have vehicles registered in a business name
- have a vehicle that is part of a matrimonial matter
- are a vehicle dealer
- use your vehicle for charities
- use your vehicle for primary production.
Relative or family member
A reference to a relative or family member for vehicle registration duty means your:
- parent or grandparent—or spouse of either
- spouse’s parent or grandparent—or their spouse
- child, stepchild or grandchild—or their spouse
- spouse’s child, stepchild or grandchild—or their spouse.
The term ‘spouse’ includes a de facto spouse or registered partner under the Relationships Act 2011 (PDF, 315KB).
Vehicles previously registered in Queensland
Vehicle registration duty is not charged on a vehicle if:
- the vehicle was registered and the registration expired or was cancelled
- the previous registered owner or a relative is registering the vehicle again.
Vehicles registered interstate
You do not have to pay registration duty when you register a vehicle in Queensland if the vehicle is registered interstate, or was registered and the registration expired or was cancelled.
To be eligible, you must prove the:
- relevant duty was paid interstate
- registered owner or a relative is applying for the exemption
- vehicle was a gift if it is being registered in the name of a relative.
Gift to a family member
A gift to a family member or relative means the vehicle is not sold for any amount of money.
This exemption does not apply to transfers between siblings, people related by marriage (apart from spouses), aunts or uncles.
Apply for this exemption when you transfer the registration of the vehicle.
If you have already paid the registration duty, you can apply for a refund by providing a completed transfer of vehicle registration statutory declaration and a written request to reassess your duty.
These documents should be mailed, with a copy of your receipt showing you have paid the duty, to:
Office of State Revenue
GPO Box 2593
Brisbane Qld 4001
Vehicle registration duty is not charged on vehicles from a deceased estate that are transferred to:
- the personal representative of a person’s estate
- a person who is beneficially entitled to the vehicle in a deceased person’s estate.
You need to provide a certified copy of the original will to exercise powers as a personal representative, or show that you are an eligible beneficiary.
Ex-service men and women who have concessional registration can apply for an exemption from vehicle registration duty.
When you register your vehicle you will need to bring a letter from the Department of Veterans' Affairs that shows you:
- are at least 70% incapacitated under the Veterans' Entitlements Act 1986 (Cwlth)
- have been assessed as having at least 50 impairment points under the Military Rehabilitation and Compensation Act 2004 (Cwlth).
The exemption can only apply to 1 vehicle at a time. Your previous vehicle can have the concession code removed for the exemption to apply to a new vehicle.
If you have lost the use of your legs
Registration duty will not be charged if all the following apply:
- you have lost the use of 1 or both legs
- your vehicle is used for transport to and from your place of employment or education
- you can't use public transport.
When you register your vehicle you need to provide:
- a statutory declaration stating that you meet all the eligibility requirements
- a letter or certificate from a medical doctor confirming that you have lost the use of 1 or both legs and you can't use public transport.
Vehicles registered in a business name
We will not charge duty on an application to register or transfer a vehicle if all of the following apply:
- the vehicle is registered in the name of a business
- vehicle registration duty was paid when the vehicle was registered
- an application is made by or for the owners of the business
- the vehicle will be registered in the
- sole names of the owners
- name of another business belonging solely to the owners
- same business name if the vehicle is already registered under a corresponding Act in the name of a business owned solely by the owners.
This exemption applies only to business names and not to company names. Companies are registered under the Corporations Act 2001 (Cwlth).
When to pay duty for business vehicles
|Situation||Why duty applies|
When the vehicle is:
|The vehicle is not registered in a business name|
|When the vehicle is:
||The company owns the business, not the sole shareholder|
|When the vehicle is:
||The vehicle is not registered in a business name|
|When the vehicle is:
||The 2 business names are not owned by the same people—1 is owned by a company and the other by a partnership|
Vehicles as part of matrimonial matters
Duty may not apply to vehicles that are part of some matrimonial matters.
For the exemption to apply, the transfer must be:
- dated after the court order or financial agreement
- clearly stated in the court order or financial agreement.
You must produce a copy of the court order or financial agreement when submitting your vehicle transfer application (form F3520) (PDF, 140KB) to the Department of Transport and Main Roads.
Vehicle dealers exemption
Duty does not apply to:
- transfers of a vehicle to a vehicle dealer—if the vehicle is acquired as trading stock. Trading stock is used vehicles available for sale
- an application to register a used vehicle in the name of a vehicle dealer—if the vehicle is acquired as trading stock
- applications to register a new vehicle in the name of a vehicle dealer—if the vehicle is a demonstrator vehicle used to sell vehicles of the same type.
You need to pay vehicle registration duty if you claimed the dealer exemption and:
- within the first year you stop using the vehicle as a demonstrator or trading stock and the vehicle is not sold
- the vehicle has been registered for 1 year and it has not been sold during that year.
You will need to complete a vehicle dealer disclosure (form D9.2) and pay duty to the Office of State Revenue within 28 days. The dutiable value will be the value at the time the vehicle is either registered or transferred to the dealer.
|Situation||How duty applies|
A truck dealership registers a van to be used by the service department of the dealership
The dealership can’t claim an exemption because the vehicle is not used as a demonstrator vehicle or trading stock
A dealer registers a late model vehicle that has been registered before and uses it as a demonstrator
The dealer can't claim an exemption because a demonstrator vehicle must be a new vehicle and not registered before
A dealer registers a new vehicle as a demonstrator and uses it as a demonstrator model for 18 months, then sells it
The vehicle has been used as a demonstrator for more than 1 year, so the dealer is no longer eligible for an exemption
A vehicle dealer acquires a new vehicle to be used as a demonstrator, and claims an exemption when registering the vehicle.The vehicle is used for 5 months as a demonstrator and then the service department uses the vehicle as a runabout vehicle for 14 months before it is sold
As the vehicle was not used solely as a demonstrator or trading stock for the first 12 months, the exemption does not apply.
The vehicle dealer must notify the Commissioner of State Revenue within 28 days of the vehicle no longer being used as a demonstrator. This will be at the 5 months when the service department took over.
The Commissioner will issue a reassessment notice if more duty is payable
A vehicle dealer buys a used vehicle that is trading stock. The vehicle is taken home by a company director after hours but is offered for sale during business hours. The vehicle is sold in less than 1 year
The vehicle dealer can claim the exemption—the vehicle was sold in less than 1 year and was available for sale as trading stock during business hours; and the private use was limited to after hours
A vehicle is available for sale 18 months before the car is sold
As 1 year had passed without a sale, the vehicle is no longer considered to be trading stock. The exemption does not apply.
The vehicle dealer must notify the Commissioner within 28 days from the end of the first year. The Commissioner will issue a reassessment notice if further duty is payable
A vehicle dealer has a new minibus used only to drop off and pick up clients who are having their vehicles serviced at the dealership
The dealer can’t claim the exemption because the vehicle is used for the general purposes of the dealer’s business—it is not a demonstrator
A vehicle dealer has a used vehicle to be used as trading stock.
The registration is not renewed after 10 months and the vehicle remains unregistered until sold 6 months later
The exemption does not apply because 1 year has passed without a sale and the vehicle is not considered to be trading stock.
The vehicle dealer must notify the Commissioner within 28 days from the end of the 12 months. The Commissioner will issue a reassessment notice if further duty is payable
An exemption is available to charities if they use a vehicle mainly for their charitable activities. The exemption is not available if the vehicle is part of an employment or salary package.
When you register your vehicle you need to provide a:
- copy of your notice or letter of registration as a charitable institution
- 'qualifying use' statement, which indicates the purpose for which the vehicle will be used, signed by an authorised representative of the registered charitable institution.
A copy of the ‘qualifying use’ statement was included with your letter of registration as a charitable institution.
Vehicles for primary production
An exemption is available to primary producers if the vehicle:
- has a gross vehicle mass of more than 6 tonnes under the Transport Operations (Road Use Management) Act 1995 (PDF, 1.5MB)
- will be used solely in a business of primary production.
If you sell, transfer or start using the vehicle for any purpose other than the business of primary production within 5 years, you must complete a primary producer disclosure (form D9.1) and pay duty to the Office of State Revenue within 28 days of the change.
You need to provide a completed vehicle for primary production statutory declaration when you register your vehicle.
Contact the Office of State Revenue for information about exemptions for:
- local government councils and other government entities
- the Governor
- consulate officials, if they are nationals of the countries represented
- heavy vehicles
- financiers and hirers of repossessed vehicles
- forfeiture orders
- industrial organisations
- disposal of vehicles under particular Acts.