About vehicle registration duty
You pay duty when you register or transfer:
- a new vehicle
- a used vehicle
- a modified vehicle
- vehicles as part of business or land contracts
- a conditionally registered vehicle
- taxi or limousine licence.
You do not need to pay vehicle registration duty for caravans, trailers or boats. You may be able to apply for an exemption from duty depending on your circumstances.
How to work out the duty for your vehicle
First, you need to work out the dutiable value of your vehicle. This is the list price or market value, depending on whether your vehicle is new, used or modified for a person with a disability.
Duty also applies to optional equipment such as adding tow bars and window tinting or changing tyres and wheel rims.
Then you calculate the registration duty, based on your vehicle's dutiable value, using the rates of duty.
Find out what penalties and interest could be payable.
Duty for new vehicles
The list price of a vehicle is the recommended retail price. Sometimes there is more than 1 recommended retail price for a vehicle, in which case you calculate duty on the highest amount from the manufacturer, importer or principal distributor in Brisbane as stated in the Duties Act 2001.
Vehicles with a list price
You pay duty on the list price (including GST and luxury car tax) plus the price for any optional equipment.
Example: List price
You buy a new car worth $38,990 (GST included). You also pay $5,000 for optional equipment that normally retails for $7,000.
You will pay duty on $43,990, as this is the list price amount for this model plus $5,000, which is the price for the optional equipment.
$43,990 (dutiable value) = $38,990 (list price) + $5,000 (price of optional equipment)
Vehicles without a list price
You pay duty on the highest of the:
- purchase price—this includes any deposit, trade-in allowance, dealer delivery fees, warranties and price of optional equipment
- market value of the vehicle.
Example: Purchase price
You buy a car for a price of $28,990 (GST included) from a licensed motor dealer. The deal includes free window tinting. The car does not have a list price, and you pay in cash.
You will pay duty on the dutiable value of $28,990 as this is the purchase price of the car. The price of the optional equipment is $0.
Example: Market value
You work for a car manufacturer who is offering staff a 50% discount on the selling price on their latest model. Motor traders are offering the same model for $30,000. You end up purchasing the car for $15,000.
You will pay duty on the dutiable value of $30,000 as the market value of the car is higher than your purchase price.
Duty for used vehicles
For used vehicles, you pay duty on the higher amount of the following:
- total amount paid by the purchaser (including any deposit, trade-in allowance, dealer delivery fees, warranties and the price of all optional equipment)
- market value of the vehicle.
Example: Market value
A woman sells a car to her niece for $6,000, a price that is 50% below the market value for a similar vehicle.
The niece will pay vehicle registration duty on the dutiable value of $12,000 (market value of the vehicle).
Duty for modified vehicles
For vehicle registration duty, a modified vehicle is for a person with a disability to drive or be a passenger in.
Duty is only calculated on the dutiable value of the vehicle minus the cost of making it accessible for a person with a disability.
You pay duty on the:
- list price (including GST and luxury car tax) plus the price for any optional equipment minus the value of the modification
- market value minus the value of the modification.
You will need to complete a modified vehicle statutory declaration when you register or transfer your registration. Only a person with a disability, or a relative or carer of a person with a disability, can apply to register or transfer the registration of a modified vehicle.
Example: Modified vehicle
You buy a new car for $35,990 (GST included) from a licensed motor dealer. The list price of the vehicle is $25,990, and it has been modified to fit a wheelchair for $10,000. The modifications are considered to be optional equipment.
You will pay duty on $25,990 as this is the dutiable value minus the modification costs.
$25,990 (dutiable value) = $25,990 (list price) + $10,000 (optional equipment) - $10,000 (modification)
Vehicles as part of business or land contracts
You pay transfer duty on the transfer, or agreement to transfer, land or business assets. If you buy a business or land that includes a vehicle, you must provide the Office of State Revenue the:
- contract of sale
- completed transfer of vehicle registration application (F3520) stating the number of cylinders or rotors
- value of the vehicle (if not stated in the agreement).
You should lodge these documents with the Office of State Revenue before you take the transfer of vehicle registration application to the Department of Transport and Main Roads.
You may be able to get a credit if you paid duty on the transfer of vehicle registration. To request a credit, include a copy of the receipt issued by the Department of Transport and Main Roads when you lodge your documents with the Office of State Revenue.
Duty for taxi and limousine licences
You pay transfer duty on the transfer, or agreement to transfer, of a Queensland taxi licence or limousine licence—with or without a motor vehicle and any related equipment, like a taxi meter.
How to pay duty
You need to pay duty within 30 days of the date of the transfer or agreement to transfer. You will be sent an assessment of duty that may include daily interest if you did not lodge documents within 30 days. Interest is charged on overdue payments. Current transfer duty rates apply.
You must give the Office of State Revenue:
- a written agreement you signed for the purchase of the licence, or, if there is no agreement, a completed transfer duty statement (form D2.3)
- any written transfer of the licence
- a completed dutiable transaction statement (form D2.2).
Credit for duty paid on transfer of vehicle registration
A credit may apply to the transfer duty payable on a licence transfer if:
- duty was paid when the vehicle registration was transferred
- the vehicle and licence were purchased together from the same vendor.
You need to provide the Office of State Revenue your receipt showing duty was paid when you lodge your documents for assessment.