About vehicle registration duty
You pay duty when you:
- register or transfer the registration of a
- new vehicle
- used vehicle
- modified vehicle
- transfer vehicles as part of business or land contracts
- transfer a taxi or limousine licence.
You will also pay duty when you register or transfer a conditionally registered vehicle (e.g. forklift, tractor)
You may be able to apply for an exemption from duty depending on your circumstances.
You do not need to pay vehicle registration duty for caravans, trailers or boats.
How to work out the duty for your vehicle
First, you need to work out the dutiable value of your vehicle.
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.
Dutiable value
The dutiable value for a:
- new vehicle is the list price plus the price for any optional equipment
- used vehicle (or a new vehicle without a list price) is the higher of the
- total amount paid by the purchaser (including any deposit, trade-in allowance, dealer delivery fees, warranties and price of optional equipment)
or - market value of the vehicle.
- total amount paid by the purchaser (including any deposit, trade-in allowance, dealer delivery fees, warranties and price of optional equipment)
The list price is the recommended retail price including GST and luxury car tax (LCT). If there is more than 1 recommended retail price for a vehicle, duty is calculated on the highest amount from the manufacturer, importer or principal distributor in Brisbane.
You buy a new car that retails for $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 for this model plus $5,000, which is the price for the optional equipment.
You buy a new 4-wheel drive with a recommended retail price of $101,000 (GST and LCT included). You negotiate a substantial discount and agree to pay $95,000 (including GST and LCT) plus all on-road costs.
You will pay duty on $101,000 as this is the list price for this model.
You buy a new 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.
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.
You sell your car to a family member for $6,000, a price that is 50% below the market value for a similar vehicle.
They will pay vehicle registration duty on the dutiable value of $12,000 (market value of the vehicle).
- You transfer a vehicle to or from a business. You pay duty on the market value of the vehicle at the date of the transfer.
- You transfer a vehicle that has a written-down value in the company account of $10,000. Because the vehicle could be sold on the open market for $50,000, you will pay duty on $50,000.
You purchase an unregistered vehicle that needs significant repairs for $10,000.
After you repair the vehicle and at the time of registering it, the vehicle could be sold for $50,000. You will pay duty on $50,000.
You purchase a vehicle overseas for $20,000 and import it into Australia. After you make modifications, you register the vehicle in Queensland. At the time of registration, the vehicle could be sold for $70,000.
You will pay duty on $70,000.
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 LCT) plus the price for any optional equipment minus the value of the modification
or - 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.
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.
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 Queensland Revenue Office the:
- contract of sale
- completed transfer of vehicle registration application (F3520) stating the number of cylinders or rotors (if duty has not yet been paid on the transfer of vehicle registration)
- a copy of the receipt from Department of Transport and Main Roads (if the duty has already been paid on the transfer of vehicle registration)
- value of the vehicle (if not stated in the agreement).
You should lodge these documents with Queensland Revenue Office before you take the transfer of vehicle registration application to the Department of Transport and Main Roads.
If several vehicles are being transferred, it is helpful to provide a spreadsheet with the relevant details. We cross reference the details in the covering letter with the information on the transfer form.
The vehicle registration duty will be reduced by the amount of transfer duty that was paid for the vehicle as part of the business contract. There may still be some duty payable on the registration or transfer of the vehicle.
If the vehicle registration duty has already been paid, the credit will be applied to any outstanding duty on the business contract.
Refer to section 384 of the Duties Act 2001 for information about the reduction of vehicle registration duty.
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 Queensland Revenue Office:
- 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)
- a valuation of the licence, if the parties are related (you may be able to obtain this from the Taxi Council Queensland).
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
and - the vehicle and licence were purchased together from the same vendor.
You need to provide Queensland Revenue Office your receipt showing duty was paid when you lodge your documents for assessment.