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
- are doing a small business restructure
- 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.
There are no additional exemptions for seniors card or pensioner concession card holders. However, seniors and pensioners may be eligible for a reduction in their registration fee.
If you have already paid vehicle registration duty and believe that you were eligible for an exemption, contact us within 60 days to request a refund. If you include an EFT refund form and a copy of your bank statement to confirm your bank details are correct, we can transfer your refund to your bank account.
- email firstname.lastname@example.org
- write to
Queensland Revenue Office
GPO Box 2593
Brisbane Qld 4001.
If you have paid vehicle registration duty and you are dissatisfied with the assessment of duty, you can lodge an objection within 60 days of making payment. In some circumstances, you may be allowed an extension of time to lodge an objection. Find out more about your objection rights.
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 Civil Partnerships Act 2011.
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 vehicle 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.
If you have already paid the vehicle 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.
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 fees under the prescribed service persons category can apply for an exemption from vehicle registration duty.
Concessional registration fees only apply to one vehicle at a time. If you are receiving the concession on another vehicle, use the registration concession application (F3937) to update the vehicle to which you want the concession to apply. You will not receive the exemption or a refund of duty if you do this after registration.
When you register your vehicle you will need a:
- registration concession application (F3937)
- letter from the Department of Veterans' Affairs that is dated before the application to register your vehicle and shows you:
The exemption will not apply if you do not have the letter from the Department of Veterans’ Affairs when you register the vehicle.
The Department of Transport and Main Roads or your vehicle dealer will apply the concessional registration fees (code EXSV) and the duty exemption to your registration.
If you have lost the use of your legs
Vehicle 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.
If the vehicle is new, include a copy of your completed GST exemption declaration.
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 does not apply to vehicles registered in company names. Companies are legal entities and are generally registered under the Corporations Act 2001 (Cwlth). Business names are not legal entities.
When to pay duty for business vehicles
|Situation||Why duty applies|
When the vehicle is:
|The vehicle is registered in a company name and not a business name|
When the vehicle is:
||The company owns the business, not the sole shareholder|
When the vehicle is:
||The vehicle is registered in the name of the trustee company and not 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|
When the vehicle is:
|There is no exemption from vehicle registration duty for a change of trustee|
Vehicles transferred as part of a small business restructure
Small business owners who restructure their business on or after 7 September 2020—from a sole trader, partnership or discretionary trust structure to a company structure—may be eligible for transfer duty exemption. If vehicles are included in the restructure, you may be eligible for a registration transfer duty exemption.
The exemption may also apply to restructures on or after 28 June 2021 that involve a transfer of assets from a discretionary trust structure to a company structure of which the trustee is the sole shareholder.
To be eligible for the exemption as a:
- sole trader, you (the individual owner) must be a shareholder of the company
- partnership, all partners must be shareholders of the company
- discretionary trust, all default beneficiaries must be shareholders of the company.
The exemption doesn't apply if business assets (including vehicles):
- being transferred have an unencumbered value more than $10 million
- are being transferred from an entity with annual turnover of more than $5 million
- are being transferred to a company that has traded before
- are being transferred between companies
- are being transferred out of a company structure.
The exemption also doesn't apply to land used as:
- a residence by the transferor
- an investment property held by the transferor which is used to generate income to fund the business.
To determine whether an entity's turnover is less than $5 million, we will look at their financial statements for the total income received in the income year the restructure occurs. If they own more than one business and only one of them is being restructured, we will look at the annual turnover for that business only. As an entity's turnover can fluctuate, we may consider averaging over a 3 year period where appropriate.
Read Part 1A, Chapter 10 of the Duties Act 2001.
Send the following documents to Queensland Revenue Office:
- vehicle transfer application (Form F3520) (PDF, 140KB)
- covering letter setting out ownership levels both before and after restructure
- copy of your latest full year financial statements
- transfer duty documents (if applicable).
Queensland Revenue Office
GPO Box 2593
Brisbane Qld 4001
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 Queensland Revenue Office 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.
If you have already paid vehicle registration duty and you believe that your institution is eligible for this exemption, you can email email@example.com to request a refund. We must receive this reassessment application no later than 11 months after your original assessment date. If you don’t apply within this timeframe, you may be allowed an extension of time to lodge an objection.
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
- 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 Queensland Revenue Office within 28 days of the change.
You need to provide a completed vehicle for primary production statutory declaration when you register your vehicle.
Contact Queensland Revenue Office for information about exemptions for:
- local government councils and other government entities
- the Governor
- consulate officials, if they are nationals of the countries represented
- financiers and hirers of repossessed vehicles
- forfeiture orders
- industrial organisations
- disposal of vehicles under particular Acts.