MTA NSW Gets Clarity on Stamp Duty

After members raised concerns with MTA NSW on the definition of market value for the purposes of stamp duty on the sale of used vehicles, MTA NSW entered discussions with Transport for NSW and Revenue NSW to provide clarity for the industry.,

There had been confusion on the application of stamp duty being applied not on the final sale price but on the ticket price of the used vehicle. MTA NSW then contacted the relevant Departments to advise them that the industry had concerns that the definition of market value and the application of stamp duty was incorrect.

We have now received advice from Revenue for NSW to set out the definition of market value so that stamp duty can be applied correctly.

Revenue NSW has agreed with MTA NSW’s definition of the market value being “…the money, or money’s worth given for the acquisition of the vehicle.” And that “If there is a reduction in purchase price due to a sale, this is a valid reduction in the dutiable value.”

In short, stamp duty is to be paid on the sale price of a used vehicle from a dealer to the public.  Stamp duty provisions for new vehicles will remain the same.

A copy of the advice from Revenue NSW is available here.