URGENT Does a new car HAVE to be registered prior to NSW stamp duty being paid?

Submitted: Monday, Dec 21, 2009 at 23:04
ThreadID: 74564 Views:5274 Replies:16 FollowUps:22
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I can save $1300 in Stamp Duty in WA if I pay Stamp duty for a NSW new car purchase (TritonGLR). Local DPI says that's fine, but the NSW car dealer thinks I HAVE to register the car prior to paying Stamp duty in NSW. I apparently can't register the car in NSW as I have no abode there. Does anyone know if there is a way to pay for stamp duty (in NSW) WITHOUT having to register the vehicel in that state? urgent replies wanted
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Reply By: Dave... Adelaide (SA - Monday, Dec 21, 2009 at 23:32

Monday, Dec 21, 2009 at 23:32
If you pay stamp duty in NSW wont you have to pay it again when you register the car in WA ???

Cheers....Dave
AnswerID: 396004

Reply By: Wanna Ute - Monday, Dec 21, 2009 at 23:36

Monday, Dec 21, 2009 at 23:36
I double-checked here in WA, and No, as long as it has been paid in the state of purchase, and I can provide proof.
AnswerID: 396005

Reply By: Member - Andrew L (QLD) - Tuesday, Dec 22, 2009 at 00:26

Tuesday, Dec 22, 2009 at 00:26
So why not pay the stamp duty and register it in NSW..?...then after 3 months in your new abode (state) you may be legally required to re register it in your new State......

....your not trying to evade legitimate taxation and registration obligations from the State you made the purchase from...are you..?

AnswerID: 396009

Follow Up By: fisho64 - Tuesday, Dec 22, 2009 at 09:29

Tuesday, Dec 22, 2009 at 09:29
I have done the same in Qland and brought to WA.
Queensland probably realised a while back that they may as well have the Stamp Duty and you can transfer or register in your name if you sign a form to undertake to change it when you get home. Rego was refunded in a couple of weeks in full and cost only $56 to put it over pits and of course plus WA rego, which was a little cheaper than Qland.

Ask NSW if you can put it in your name there under those circumstances. DONT just listen to the salesman-likely he knows jack all as with most used car salesmen
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Follow Up By: fisho64 - Tuesday, Dec 22, 2009 at 09:33

Tuesday, Dec 22, 2009 at 09:33
sorry-above should have been in main part of thread!
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Reply By: fisho64 - Tuesday, Dec 22, 2009 at 00:36

Tuesday, Dec 22, 2009 at 00:36
This post has been read by the moderation team and has been moderated due to a breach of The Foul Language Rule .

Forum Moderation Team
AnswerID: 396010

Reply By: Member - Ian W (NSW) - Tuesday, Dec 22, 2009 at 07:38

Tuesday, Dec 22, 2009 at 07:38
The "Stamp Duty" or Transfer Fee is part of the actual first time registration fee when a car changes hands in NSW.

You can't pay one without the other.

Ian.
AnswerID: 396022

Follow Up By: The Landy - Tuesday, Dec 22, 2009 at 09:17

Tuesday, Dec 22, 2009 at 09:17
That was also my understanding.....

The Office of State Revenue (OSR) levies stamp duty when a vehicle is registered in a new name. The RTA collects the stamp duty on OSR's behalf. You will pay stamp duty on the market value of the vehicle or on the price you paid for the vehicle, whichever is higher.

Stamp duty is 3% of the market value of the car, up to $45,000 then 5% on the value over $45,000.

For example, the stamp duty for a vehicle with a market value of $50,000 is calculated as follows:

$45,000 at 3% = $1,350

$5,000 at 5% = $250

Total stamp duty to be paid = $1,600

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FollowupID: 664719

Follow Up By: fisho64 - Tuesday, Dec 22, 2009 at 09:28

Tuesday, Dec 22, 2009 at 09:28
so what happens when you buy a second hand vehicle thats already registered?
Or you re-register a car thats been expired for a while but still belongs to you?
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Follow Up By: The Landy - Tuesday, Dec 22, 2009 at 09:47

Tuesday, Dec 22, 2009 at 09:47
"The Office of State Revenue (OSR) levies stamp duty when a vehicle is registered in a new name".

You pay when you change the name on the rego, regardless of whether it is new or used....you don't pay if re-registering providing it is in the same name.

Cheers
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FollowupID: 664727

Follow Up By: Member - Timbo - Tuesday, Dec 22, 2009 at 12:48

Tuesday, Dec 22, 2009 at 12:48
Yes, that's how I understand it too.

But then again, it was also my understanding that Stamp Duty was to be abolished on 1 July 2001 as part of the GST deal...
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FollowupID: 664739

Follow Up By: Wanna Ute - Tuesday, Dec 22, 2009 at 13:45

Tuesday, Dec 22, 2009 at 13:45
Yeah Timbo. I'm finding nothing is particlarly clear!
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Follow Up By: Member - Andrew L (QLD) - Tuesday, Dec 22, 2009 at 14:01

Tuesday, Dec 22, 2009 at 14:01
Yes, GST was to eliminate a multitude of tax's, State and Federal, unfortunately the State Labour governments have neglected to eliminate a few, particularly State Stamp duties..

At least vehicles are now only subject to 10% GST, and not the 22% sales tax we used to have on consumer goods.

Vehicle tariffs are/were another issue.
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FollowupID: 664754

Follow Up By: The Landy - Tuesday, Dec 22, 2009 at 14:55

Tuesday, Dec 22, 2009 at 14:55
Hi Andrew

What is worst is that the stamp duty is applied to the price + GST making it a tax on a tax, additionally, it has a cumulative effect if the vehicle is sold mutliple times over its life.
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FollowupID: 664764

Reply By: Member - Teege (NSW) - Tuesday, Dec 22, 2009 at 08:35

Tuesday, Dec 22, 2009 at 08:35
Technically stamp duty is imposed on the documentation which records the registration of the vehicle. In days gone by, in some circumstances you had to actually buy stamps (special stamp duty ones) and attach them to the document. From the Office of State Revenue (NSW) website :
"The person who pays the duty is the
person who applies for registration
of the motor vehicle"
So you can't pay the stamp duty without applying for the registration.

teege
AnswerID: 396028

Reply By: fisho64 - Tuesday, Dec 22, 2009 at 09:32

Tuesday, Dec 22, 2009 at 09:32
I have done the same in Qland and brought to WA.
Queensland probably realised a while back that they may as well have the Stamp Duty and you can transfer or register in your name if you sign a form to undertake to change it when you get home. Rego was refunded in a couple of weeks in full and cost only $56 to put it over pits and of course plus WA rego, which was a little cheaper than Qland.

Ask NSW if you can put it in your name there under those circumstances. DONT just listen to the salesman-likely he knows jack all as with most used car salesmen
AnswerID: 396033

Reply By: garrycol - Tuesday, Dec 22, 2009 at 11:31

Tuesday, Dec 22, 2009 at 11:31
You will need to register the vehicle in NSW to pay stamp duty either 3 or 5% of the purchase price.

Garry
AnswerID: 396045

Reply By: dazza62 - Tuesday, Dec 22, 2009 at 12:57

Tuesday, Dec 22, 2009 at 12:57
And WHY?

Give the State Revenue Office in WA a call on (08) 9262 1100 or 1300 368 364. I am sure they would be delighted to discuss the options as well as the penalties that may apply for persons trying to avoid the payment of Stamp Duty.





AnswerID: 396052

Follow Up By: Wanna Ute - Tuesday, Dec 22, 2009 at 13:29

Tuesday, Dec 22, 2009 at 13:29
I've called them twice. As long as stamp duty is paid in A state i'm not avoiding stamp duty
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Follow Up By: Wanna Ute - Tuesday, Dec 22, 2009 at 13:42

Tuesday, Dec 22, 2009 at 13:42
Why so narky anyway? I even checked a third time due to your passionate response!
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FollowupID: 664751

Reply By: The Landy - Tuesday, Dec 22, 2009 at 13:25

Tuesday, Dec 22, 2009 at 13:25
Wanna Ute

Can you clarify where you are taking delivery of the vehicle, NSW or WA.

The issue is whether the differential in the stamp duty is greater than the cost of freight to transport to WA from NSW.

I’m not sure whether it is possible to pay stamp duty in NSW if it isn’t intended to be registered here, however assuming it is, if there was this differential I would have thought WA car dealers would be doing it all the time.

To good to be true I suspect…and also most likely the reason that stamp duty is charged at the time of the first registration, or subsequent vehicle ownership changes to prevent the possibility of this occurring.

Why not just ask the WA dealer for a further discount of $1,300 on the purchase price, or to waive the ‘delivery fee’.

Interested to know how this works out for you…

Cheers
AnswerID: 396054

Follow Up By: Wanna Ute - Tuesday, Dec 22, 2009 at 13:33

Tuesday, Dec 22, 2009 at 13:33
The car deal was far better from Sydney. Even with transport. Sydney can deliver in Jan. Perth dealers can't supply until April!
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FollowupID: 664748

Follow Up By: The Landy - Tuesday, Dec 22, 2009 at 14:02

Tuesday, Dec 22, 2009 at 14:02
Thanks. So it isn't just the differential in the stamp duty offsett against the freight charges, but the 'total' cost, which includes the base line price of the vehicle.

Good luck,
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Follow Up By: Wanna Ute - Tuesday, Dec 22, 2009 at 14:15

Tuesday, Dec 22, 2009 at 14:15
The main advantage is I can get my triton in january from Sydney rather than local dealers. You've got to weigh up the hassle of negotiating interstate and registering the vehicle yourself over the cost saving. I'm estimating saving $500 onthe very best quote in Perth and $2000 for the worst My guess is Sydney is more competitive market and u was lucky to get a dealer trying to reach their monthly target. A dealer in Perth clearly had reached their quota and was not keen to do a deal
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Reply By: Wanna Ute - Tuesday, Dec 22, 2009 at 14:06

Tuesday, Dec 22, 2009 at 14:06
Latest update . The RTA and OSR in NSW are currently considering this: a car can be given a temporary unregistered certificate (all up $30 for 7 days with CTP). Technically I can pay for stamp duty in my name , but it has never been done before. So it will prbably get stuck government limbo until after my dec 31 deadline for my investment committment (required for the govt tax incentive). The OSR does not mind where stamp duty is paid as long as you can prove it is paid in your name .
AnswerID: 396059

Reply By: Member - Kiwi_In_Aussie (Wagga - Tuesday, Dec 22, 2009 at 14:15

Tuesday, Dec 22, 2009 at 14:15
Not quite in full response to your enquiry but part help - perhaps

I have just re-registered 2 trucks from Qsld for my NSW busines.

Provided I did not let the Qsld rego expire I did not have to pay stamp duty when I registered in NSW

If however, I had let the Qsld rego expire I would have had to pay stamp duty.
AnswerID: 396061

Follow Up By: Wanna Ute - Tuesday, Dec 22, 2009 at 14:31

Tuesday, Dec 22, 2009 at 14:31
Very handy point as I think the temp rego is only 7 days. It is new car which will have no prior registration and will be inspected in WA.
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FollowupID: 664761

Reply By: Member - Graham H (QLD) - Tuesday, Dec 22, 2009 at 20:28

Tuesday, Dec 22, 2009 at 20:28
Wh dont you use a friend or relatives address Its only somewhere to send the documents.

I bought a van in WA and had no address Smiled sweetly and they let me use the street address of the van park I was staying at.

Not strictly kosher but just used the number and street. Didnt say it was the park.

You should be able to do the same and change rego before its due next year.

Thats what we are going to do.


AnswerID: 396111

Reply By: Member - Charlie M (SA) - Tuesday, Dec 22, 2009 at 23:10

Tuesday, Dec 22, 2009 at 23:10
Hi
Wanna Ute
On the 50% as long as order in by 31/12/2009 delivery can be up to 31/12/2010 and still get investment allowance.
Have sign for new hi lux with April/May delivery
Cheers
Charlie
AnswerID: 396137

Follow Up By: Wanna Ute - Wednesday, Dec 23, 2009 at 12:01

Wednesday, Dec 23, 2009 at 12:01
I'm an older version of the 'me' generation and I want my toy NOW. Don't make me tantrum! But seriously, with the 50% tax incentive make sure your order counts as an'investment committment' as the tax dept is wary of people making long back orders to access the tax advantage. There is only one triton with the specs I want available in aus. Well actually even it is still on a boat. That ute was destined for a dealer Thats why I went directly to Sydney
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FollowupID: 664889

Follow Up By: Member - Charlie M (SA) - Thursday, Dec 24, 2009 at 00:18

Thursday, Dec 24, 2009 at 00:18
No vehicle to my specs in Australia at this time
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Follow Up By: Wanna Ute - Thursday, Dec 24, 2009 at 10:36

Thursday, Dec 24, 2009 at 10:36
"im not sure if you have an 'investment commitment' in the eyes of the tax dept. They are clamping down on people who have delayed vehicle deliveries, particularly if they can get out of an order. given you have signed a contract, I ASSUME you have an investment commitment. 'subject to finance approval' I dont believe constitutes this commitment. not trying to be preachey, just trying to look out for people who may unwittingly get shafted!
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FollowupID: 665027

Follow Up By: Member - Charlie M (SA) - Thursday, Dec 24, 2009 at 11:01

Thursday, Dec 24, 2009 at 11:01
I could not care less if you assume if I have a investment commitment or not
.
You ARE NOT MY ACCOUNTANT or have any idea of the nature of my business.

My first reply was that possession did not have to take effect, before the end of the year to claim the investment allowance.

This ends this discussion on the matter.

Regards
Charlie
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FollowupID: 665029

Follow Up By: Wanna Ute - Thursday, Dec 24, 2009 at 13:23

Thursday, Dec 24, 2009 at 13:23
Geez mate, just trying to be helpful. If you can't take that in good spirit, all the best.
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FollowupID: 665038

Reply By: mowing - Thursday, Dec 24, 2009 at 00:46

Thursday, Dec 24, 2009 at 00:46
Wanna Ute, The problem that you will have is that if you register the vehicle in NSW and you don't live there, technically, the Dept of Transport in WA deem the vehicle to be unlicensed as soon as you cross the border so your MVIT insurance will not be valid. ie have a smash where someone is injured and you will more than likely be sued personally .You must live in the state that the vehicle is registered. If you bring it over on a truck you will need a permit to take it for vehicle inspection. Have gone through this process with a used vehicle from SA. $1300 sounds like a great deal of difference between WA and NSW stamp duty. Don't risk it, do it by the book.


Cheers


Mark
AnswerID: 396255

Follow Up By: Wanna Ute - Thursday, Dec 24, 2009 at 10:30

Thursday, Dec 24, 2009 at 10:30
That was my thought, I wasn't prepared to register in NSW, that's why I queried the possibility of paying the Stamp Duty un a officially unregistered vehicle. the OSR and RTA still cant give me a firm answer, I've stumped them, because it's technically possible but never been done!
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FollowupID: 665026

Reply By: blown4by - Friday, Dec 25, 2009 at 20:03

Friday, Dec 25, 2009 at 20:03
If you don't have proof of registration in your name in NSW you will have to pay stamp duty in WA
AnswerID: 396405

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