Stamp Duty/Tax on Used Car - RMS Determines Price!?

ycon on 24/03/2017 - 09:38
Last edited 24/03/2017 - 09:38

Hi,

Just bought my first car.

I paid well below market value because:

  1. I'm on Ozb
  2. High KM's & a couple things to be fixed (A/C- not just regas, brakes)

So, I just went to do the transfer of registration online, and I've read:

"purchase price or market price of the vehicle (whichever is higher)"

What! Who are they to determine the condition of the car/my negotiating powers?!

I looked at redbook- and the price is like triple what I paid.

  1. If I do it online, will I be forced to pay market value?

  2. If I got to an RMS office, will I be forced to pay market value?

Automotive

Comments

  • dasher86 on 24/03/2017 - 09:41

    yep.
    blame the people who declare a lower sale price than actual to pay less stamp duty.

    • ycon on 24/03/2017 - 09:46

      So the RMS will definitely apply market value? That's always the case?

      • pao2x on 24/03/2017 - 09:48

        No only if it is exceedingly low and too obvious will they exercise that right because it will be a hassle for everyone

        • ycon on 24/03/2017 - 09:54

          So on redbook my car is $12,000. I paid $3,500. Is that exceedingly low?

        • pao2x on 24/03/2017 - 10:03

          @ycon:

          At the very least you have some explaining to do

        • [Deactivated] on 25/03/2017 - 07:27

          @ycon: A couple of years ago I bought a $14,000 market-value vehicle for $3,000 (a lucky sole-bid eBay auction). RMS just used the purchase price for stamp duty.

  • chumlee on 24/03/2017 - 09:50

    Yep too many dodgy people lowering the price on transfer papers to lower stamp duty charges so a change was made years ago

  • ycon on 24/03/2017 - 09:58
    -2

    Can anyone confirm- does the SELLER tell the RMS the price they sold it for? I ask because I may put a higher price do I don't have to pay market value…

    • dasher86 on 24/03/2017 - 10:01
      +2

      now you're being dodgy.

    • pao2x on 24/03/2017 - 10:11
      +1

      Yes he does but that may take a while. Look just put down what you paid. No reason to intentionally up your bill to pay more.

      Just explain its a project car

  • Euphemistic on 24/03/2017 - 10:24

    OMG, you bought a car with high kms? You're doomed! (well, according to plenty of posts on here).

    Seriously though, it is unlikely they will check. If they do check and the 'market' value is $12k and you paid $3500 then it is possible you might need to pay some extra. The clause is to stop people saying the car is worth $5.00 to save on stamp duty. TBH the'd be better to put an extra bit on fuel taxes and abolish the stamp duty and gain a more regular income stream.

    • ycon on 24/03/2017 - 10:59

      Ok- but point is, I"m better off going into the RMS rather than doing it online?

      Has anyone done it online? Like would the machine automatically put the higher market value or what?

  • ShannonN on 24/03/2017 - 11:11

    I gave away a good condition Vs Commodore v6 to a friend of the family as her first car was roadworthy good tyres recond trans etc prolly worth 2000 at the time. (2010)

    Put it down on rego transfer as gift gave receipt as gift QLD Transport declared the market value as 1100 from memory.

    Be careful going to dmt and saying look at my car to determine its worth if there was a lot of work needed. DMT inspectors may find some stuff that wasn't fixed

    I'd factor in all the cost of repairs plus purchase price and go with the revised figure after all you still got it 8k or more cheaper

  • [Deactivated] on 24/03/2017 - 11:23

    Have you actually ever bought/sold a car before? It doesn't sound like you have.

    When you buy/sell a used car, there's a 'disposal' form that has 2 halves. Buyer keeps half and seller keeps half. Each is responsible for lodging their half with the RMS (either online or in person). Both halves are countersigned by the other party. ALWAYS Make sure both halves have the same sale price.

    Being assessed for market value vs sale price wont make a difference whether you do it online vs in person. Go with the sale price.

    If you get pinged on the purchase price later, don't say 'i got a really good deal'. Talk about the problems with the car (A/C, brakes, etc). When you eventually sell the car - don't sell it for more than you bought it for.

    Don't just lie about the sale price on disposal notice - that would be illegal.

    • ycon on 24/03/2017 - 14:14

      Don't sell it for more than I bought it for? Why not? By all means I plan to. Do some work on it, tidy it up, and sell for a profit in a couple years

      Years later- would the rms really look back at the sale price and reverse it? That's advanced

      • [Deactivated] on 24/03/2017 - 15:06
        -1

        Why not?

        Be prepared to justify the increased value - keep receipts of the improvements you mkae, etc.

        Years later

        Authorities love waiting years … allows them to rack up interest charges at 10+%

        That's advanced

        Is it really? seems pretty simple and obvious thing to check for.

        Obviously there's legitimate examples, like collectables, repaired cars, car dealers, etc … but in general cars don't increase in value.

        • Euphemistic on 24/03/2017 - 15:48
          +1

          I highly doubt the RMS is going to come after you for what is probably only $50-$100 in value of stamp duty if your car value increases. People buy and repair cars all the time and try to sell them at a profit. It won't be on their radar.

        • [Deactivated] on 24/03/2017 - 16:30

          @Euphemistic:

          I highly doubt the RMS

          It wont be RMS, it'll be OSR.

          probably only $50-$100

          Agree. It would be impossible to find a 'market value' to that level of accuracy anyway.

        • ycon on 24/03/2017 - 16:33
          -1

          Ha, reminds me very much of the book 1984. If that is what this country has gotten to, I'm leaving.

        • [Deactivated] on 24/03/2017 - 16:43

          @ycon:

          If that is what this country has gotten to, I'm leaving.

          Country is already well beyond it. Have a read about:
          - centerlink automated debt collection
          - ATO data matching

          Heck, have a look at what the NSA and CIA are doing with electronic surveillance. Just because no one has leaked the info to wikileaks yet, doesn't mean they aren't doing it in Australia too.

        • ycon on 24/03/2017 - 16:47

          @sp00ker: I'm starting a cult, and moving to space then

        • eyeballz2770 on 25/03/2017 - 09:42

          @ycon: All you need is an island, a small community and no online connectivity. :)

  • ycon on 24/03/2017 - 13:21

    Just finished up at the rms. Maybe because they were nice. Or I was nice. They didn't question it.

    If they were to pickup a problem with the sale price, would they do at that stage (ie at the rms today)?

    • [Deactivated] on 24/03/2017 - 15:09

      If they were to pickup a problem with the sale price, would they do at that stage (ie at the rms today)?

      Front line staff wouldn't have a clue about the 'market value', nor are they responsible for enforcing such things. They just put the details into the computer.

      There'll be a team in the office of state revenue who'll conduct an audit of car stamp duty and decide whether people are underquoting the sale price.

      I've always wondered why RMS doesn't make the sale price info public information - would make it a hell-of-a-lot easier to haggle on new cars.

    • [Deactivated] on 25/03/2017 - 07:44

      I should have read the comments before reply above…

      A couple of years ago I bought a "$14,000 market-value" vehicle for $3,000 (a lucky sole-bid eBay auction). RMS just used the purchase price for stamp duty.

      Those "market values" are a general value for vehicles in good condition for their age, and not the market value of your specific vehicle which would take into consideration the high kilometres and work required to fix the air-conditioning, brakes, and problems.

      Don't worry about midnight door-banging from stamp-duty collectors - you haven't done anything wrong.

      But please do get insurance beyond the compulsory third-party injury insurance (green slip). At least third-party property insurance.

      • ycon on 25/03/2017 - 13:53

        Thanks for that. When/how did the rms contact you about setting market value? At the rms when you transferred Rego?

  • alxr0101 on 25/03/2017 - 07:19
    +1

    At least 2 brain cells gave up and died after trawling through this.

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