What is motor vehicle duty?
Motor vehicle duty is a state tax payment we collect on behalf of the State Revenue Office when:
- you register a motor vehicle, motorcycle or heavy trailer for the first time
- you transfer a registered motor vehicle, motorcycle or heavy trailer into your name, such as when you buy a second-hand car.
The amount you need to pay depends on:
- the type of vehicle
- current market value at the time of registration or transfer.
Transferring a registration? Then you also pay a transfer fee.
Calculating your duty fee
The below table shows the rates for different types of vehicles. You can also use the Motor Vehicle Duty Calculator of the State Revenue Office.
The market value is the purchase price or the value of the vehicle on the open market, whichever is the highest of the two. It includes:
- all fitted accessories
- any trade-in allowance
- the value of improvements or repairs made before the transfer and registration
- dealer delivery fee (on new vehicles)
- GST and Commonwealth taxes.
With respect to trucks and other commercial vehicles, the dutiable value is their full kitted-out value as at the date of registration or transfer of registration. This includes the values of for example:
- the cab/chassis
- all additional body work
- additional customised work such as chrome, lights and paint
- sleeper cab (where applicable)
- any other accessories purchased with the vehicle
- any additional fixed machinery, including hydraulic systems, pumping mechanisms, booms, trays, etc.
| Vehicle type | Category (new1, used or transfer) |
Market value |
Rate |
|---|---|---|---|
| Low emission (120gm/km) passenger vehicle | All categories | Any value | $8.40 per $200 of the market value or part thereof |
| Primary producer passenger vehicles | All categories | Any value | $8.40 per $200 of that market value or part thereof |
| Passenger vehicles | All categories | Up to $80,567 | $8.40 per $200 of the market value or part thereof |
| Luxury passenger vehicles | All categories | $80,568 - $100,000 | $10.40 per $200 of the market value or part thereof |
| Upper luxury passenger vehicles | All categories | $100,001 - $150,000 | $14.00 per $200 of the market value or part thereof |
| Super luxury passenger vehicles | All categories | Over $150,001 | $18.00 per $200 of the market value or part thereof |
| Non-passenger vehicles and motorcycles | New registration | Any value | $5.40 per $200 of the market value or part thereof |
| Non-passenger vehicles and motorcycles (including heavy trailers) | Used or transfer of registration | Any value | $8.40 per $200 of the market value or part thereof |
1New registration refers to registering a vehicle that has never been registered in Victoria or Australia before.
When to pay
You pay motor vehicle duty when you first register a vehicle. This applies to new vehicles and second-hand vehicles where you were not the last registered operator.
If you’re transferring a registration, you pay both the motor vehicle duty and transfer fee when you lodge your transfer.
Exemptions and special conditions
Reductions or exemptions may apply for specific vehicle types or circumstances. Check the State Revenue Office’s page on motor vehicle duty exemptions and concessions.