Vehicle licence duty
Under the Duties Act 2008, duty applies to the grant or transfer of a vehicle licence based on the dutiable value of the vehicle at the time of the grant or transfer.
The dutiable value of a used vehicle is the amount for which the vehicle might reasonably be sold, free of encumbrances, in the open market.
When a person applies for the grant or transfer of a vehicle licence, they must include a signed statement setting out:
- their estimate of the dutiable value of the vehicle at the time of the application and
- if they have purchased the vehicle, the purchase price.
The person may be required to give evidence of the dutiable value of the vehicle.
Although the Department of Transport assesses duty when an application form is submitted for the grant or transfer of a vehicle licence, the Commissioner of State Revenue will reassess the amount of duty if an investigation reveals the dutiable value was not accurately assessed. Penalty tax will apply when the Commissioner determines the dutiable value was under declared.
The Commissioner may require a taxpayer to provide a written valuation by a qualified valuer of any property, including a vehicle, together with any documents or other records in the taxpayer’s possession or control relevant to determining the value.
Regardless of whether the Commissioner has required the taxpayer to provide a valuation or whether the taxpayer has complied with such a requirement, the Commissioner may:
- have a valuation made of any property or
- adopt any available valuation of the property the Commissioner considers appropriate.
