Avoiding Vehicle Stamp Duty if Buying Car from a Family Member (NSW)

Lziggystardust1 on 26/03/2023 - 15:24
Last edited 26/03/2023 - 15:43 by 1 other user

Hi there,

Does anyone know if there is a way to avoid paying stamp duty for a vehicle if your family member is giving you their car? The car is registered until 2024 if that matters. Technically they will need to sell the vehicle to me & market value of car is around $15k, so it looks like I'll need to pay $450 stamp duty from what I understand?

From online:

NSW stamp duty
You'll also need to pay stamp duty when you register your vehicle. The amount of stamp duty you will pay depends on the value of your car, so the more expensive your car is, the more stamp duty you will pay. The costs are outlined below

Thank you!

Automotive Stamp Duty

Comments

  • tight-ass on 26/03/2023 - 15:32

    Looks like you're paying stamp duty on the market value of the vehicle - https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties…

  • AngoraFish on 26/03/2023 - 15:39

    The best you can do is low-ball the estimated value, but you're going to have to pay something. 10% less than the low-end RedBook price is unlikely to raise any red flags. It's largely an honour system unless you're stupidly unrealistic in your estimated price.

    • salmon123 on 26/03/2023 - 15:54
      +3

      10% less than the low-end RedBook price is unlikely to raise any red flags

      No one knows the condition of the car when you acquire it and how you might fix it up immediately after acquiring it. As an example, hail damaged cars will sell for 70/80/90% off market value. People will buy them do some superficial repairs and sell them close to market value.

  • Baysew on 26/03/2023 - 15:44
    +1

    Paying $450 to get a $15k car seems like a bargain. How much less than $450 are you hoping for?

    • helpme on 26/03/2023 - 17:17
      +2

      If the $450 is meant to be tax on the money made and if OP is getting it for free, it seems like a lot for what is essentially a name change.

  • deme on 26/03/2023 - 15:52

    Legally you need to pay stamp due on the a fair market value for the car.
    Go to a dealer get a price and use that.

  • dtc on 26/03/2023 - 15:53
    +12

    If you kill them and inherit under their will, you get an exemption. Seems a bit excessive but $450 is $450.

    • orangetrain on 26/03/2023 - 18:51

      Yes, OP's premium ozb membership needs proof.

    • BewareOfThe Dog on 27/03/2023 - 09:53

      BTW OP, please don't do this? :)

      • Chandler on 27/03/2023 - 12:07
        +1

        Found OP's parent/s!

  • salmon123 on 26/03/2023 - 16:02

    Does anyone know if there is a way to avoid paying stamp duty for a vehicle if your family member is giving you their car?

    Break the headlights/taillights, key a few panels … that ought to reduce the market value significantly.

  • dcep on 26/03/2023 - 16:10
    +3

    is the vehicle under finance ? else don't bother doing anything unless you don't trust your family member

    just continue to pay and renew the rego under their name when due

    you can get your own insurance for the car even if the rego is not under your name

    name on rego is not ownership and australia don't have a title/register/record for car ownership

  • brendanm on 26/03/2023 - 16:45
    +4

    Just say you are paying $3k for it. I've never had the RTA question a purchase amount.

  • FoxJump on 26/03/2023 - 17:28
    +2

    maybe just keep it registered as them

  • pao2x on 26/03/2023 - 18:23

    Half the market value should be reasonable. Tell them its burning oil

  • USER DC on 26/03/2023 - 19:01

    Bloody government always want money Regardless of whatever.

    In SA one can avoid paying transfer fee if they do this transferring when the car is unregistered, (and you are paying for full 3/6 month rego). This is just transfer fee. I think this can also avoid the stamp duty or like reduce it, not too sure but its worth a shot.

  • ziggystardust1 on 26/03/2023 - 19:07
    +1

    Appreciate everyones thoughts. No the car is not under finance, and yes - guess it will essentially just be a "name change".

    Thanks everyone!

    • BewareOfThe Dog on 27/03/2023 - 09:55

      Of course you are paying $15000 off their house, or a long-term interest free loan on their new car?

  • pjetson on 26/03/2023 - 19:58

    How long has the vehicle been registered in your name? Is there any way you could claim that you registered it in the wrong name in the first place?

  • GordonD on 26/03/2023 - 21:13

    Can you add a second joint owner, that's not a transfer of ownership. Then after a decent period of time remove the first owner, which is also not a transfer of ownership. Should work if its a person with the same surname, like a family member.

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