Duties Act 2001

The amount of vehicle registration duty assessed under section 382(2) must be reduced if—

the application to register or transfer the vehicle is made in relation to a dutiable transaction; and

the dutiable value of the dutiable transaction relating to the dutiable property includes an amount representing the market value or part of the market value of the vehicle; and

transfer duty in schedule 3 has been paid or is payable on the dutiable transaction.

The reduction must be worked out using the following formula—where—DP means the duty paid or payable on the dutiable transaction that was worked out by applying the rate of transfer duty under schedule 3.DVDP means the dutiable value of the dutiable transaction relating to the dutiable property on which transfer duty in schedule 3 was worked out.MVV means the market value of the vehicle or part of the market value of the vehicle mentioned in subsection (1)(b).R means the amount of the reduction.Example for subsection (2)—A dutiable transaction comprises the transfer of the following dutiable property for the consideration stated—

• a statutory business licence ($5,000)

• personal property ($15,000) including a vehicle ($10,000).

Assuming the consideration for the transaction is the dutiable value, transfer duty of $225 is imposed on the transaction under chapter 2, being the amount worked out at the applicable rate of duty stated in schedule 3.In working out the reduction—

• factor DP is $225, being transfer duty on the transaction

• factor MVV is $10,000, being the market value of the vehicle

• factor DVDP is $20,000, being the dutiable value of the transaction on which transfer duty is imposed at the applicable rate of duty stated in schedule 3.

Applying the formula, the reduction is $112.50.

However, the reduction must not be more than the amount of vehicle registration duty that is otherwise payable under section 382(2).