Hi,
I am selling a vehicle to a good friend of mine and I want to minimise any stamp duty that my friend pays. Is there some proof of the vehicles 'market value' that I need to submit to vicroads?
Thank you
Reducing stamp duty on vehicle transfer
Duckie2hh on 05/10/2021 - 10:09
Last edited 05/10/2021 - 11:29 by 1 other user
Last edited 05/10/2021 - 11:29 by 1 other user
Comments
Stamp duty on personal property is theft by the state.
GST was introduced in 2000 to abolish stamp duty. 21Y later and it's still here.
so is the luxury car tax that was suppose to be dropped when GST came in, but it's interesting, aussies will take to the streets and protest against simple things like a potential life saving and effective control of a horrid virus.
Yet don't have the balls to protest against things like high fuel price, absurd taxation (GST) etc.
I think we all wear a wooly fleece and go "Baa
" a lotThey kept the luxury car tax around to protect Australian car manufacturing. It's working fantastically! /s
Also, our tax and excise on alcohol is exorbitant.
If they let us have all the alcohol we wanted for cheap, we wouldn't worry about the other taxes/stamp duties/etc because we would all be too drunk.
Booze is AU is definitely not expensive
Be careful understating value of car, I sold a bike to a mate 30 yrs ago and did that.
He was happy until someone ran into him, as he had no extra insurance over the included 3rd party etc. when he tried to claim the real cost of the bike the insurance said you brought it for 400 dollars (according to of transfer rego details) not 2000 and gave him 400 even though market value was around 2k
Don't quote me but I'm guessing that insurance companies don't do this now.
"I'm guessing that insurance companies don't do this now" - MS Paint, 2021
Lol @ 30 years ago…
And no, insurance is based on "agreed value" (What you and insurer agree the value is) or "market value", determined by what it would cost to replace your vehicle in the current market.
Insurance companies are not going to go back to your state registration office and ask what you put down as the buy value of the vehicle. They don't know what improvements you made or repairs since transferring registration.
I'm guessing that what happened "30 years ago" was that someone tried to cheat on their insurance policy to get cheaper premiums and it bit them on the arse.
maybe he was hit by a diplomat claiming diplomatic immunity so it went to court to try to resolve guess the embassy paid out rather than insurance but whatever, they looked up what he put as value for transfer reasons and paid that. yes it was 30 years ago doesn't mean it couldn't happen today
Stamp duty is either the purchase price or fair market value.
Go to a Dealership and see what they think it's worth.
If you put $1 as the value, they will just slap "market value" on it and you could end up paying more on it then what you should.
What you are better off doing is picking the lowest "trade in" price for the vehicle from Redbook and picking something under that price that looks reasonable.
Actually you will find that transfer duty legislation allows the respective office of state revenue to substitute market value for declared value if there is a discrepency, and it is picked up.
You might get lucky and get it through, you might not.
What cars have you bought and sold though? If it's an older car sure. But I have a hard time believing a car made within the last 1-5 years or so wouldn't raise red flags. That or you've just been lucky with whoever you've dealt with.
I understand it's "free" money for them. But if they want to chase you up on it they have every right to. Regardless of them being a douche or not.
My old mate "sold" me his car for $1, it was worth $10K at the time.
It seems ridiculously easy for vicroads to check if it's a blown engine, for starters you wouldn't be driving it with a blown engine so why would someone be paying registration for it and if the engine was replaced it'd have a new engine number.
Penalty for OP on lying on the car value is double the amount of duty owed. And it falls on OP because they're the one signing off the value of the car. Odds of getting caught go up the more you lie.
Risk comes down to what car it is, if it's relatively new I'd go with something reasonable (for memory you just put the make/model, if it's a higher trim then just value it at the cheapest trim). If it's an old car, could probably get away with nearly anything.
Vic doesn’t require annual inspections does it? It would be easy to keep a project car registered annually so you don’t need to go through the process of re-registering it when in 5 years you finally put it back together (despite plans of a quick 3 month fix up. Although, transfer of ownership requires an inspection to transfer rego doesn’t it?
Nsw requires annual inspection so it’s more likely any non running car will not be registerd.
Reducing stamp duty by writing a lower value than the sale price would be fraud - but almost everyone does it to different extents. Law says you have to pay it, unlike voluntary taxes like speeding or parking fines.
…writing a lower value than the sale price would be fraud
They've got safeguards to protect their revenue by taking the sale price or the "market value". I gave a car worth about $5000 to my mate before and if he was to write the true amount, they would've charged him based on the market value anyway.
Its a 1 year old car. I am not looking for $1 sale. But like Freefall101 said, is it possible to declare it a lower value based on a lower trim model?
Thanks for everybody's advice.
I recently purchased a car and put the price I paid for it. Lowering the price would save me a whole $20. Not worth the hassle.
Compare it to redbook to get an idea of how much it's worth.
Just say it's got a stuffed motor and put the lowest price you can
Isn't the issue here that the stamp duty per $1000 is not that high so putting a car worth 5k down as 4k is not going to make much difference, but if you put a 60k car down as 40k it's going to look pretty sus.
Thanks for the advice everyone.
good lord you people make things hard
all you need to do is go onto gumtree carsales, find a car of a same make model year km condition and spec. AND obviously find the lowest price, use these as the transfer price
printout these docs, SAVE THEM with the date shown or just print to pdf email them to yourself
any concerns just produce these docs as evidence
that's the advice given by the rta
There is no proof required, it's more of a declaration for records. As long as it doesn't look too sus and get the attention of the staff processing it, no one really checks. I mean you can even put a '93 skyline' as 5k and the person processing might just seem it to be reasonable for a 28 year old car.