Victoria is about to introduce new Stamp Duty changes in the new financial year that mean car buyers spending more than $67,525 will cop extra charges.
Melbourne-based Dutton Garage, a premium used car dealer, has put together a guide on how the changes will affect car buyer at different price levels, with a range from $80,000 to $450,000 represented and analysed.
It is, of course, a thinly disguised marketing technique which urges customers to buy ‘now’ to avoid the extra costs in a few days’ time, but it’s helpful for anyone considering a new car too.
Dutton points out the stamp duty on a car of any value, including above $67,525 and all the way up into the hundreds of thousands, currently sits at 4.2 per cent.
From July 1, that changes to 5.2 per cent for a car valued between $67,525 and $100k. Anything up from there , but below $150k, will incur a 7 per cent charge, and anything above $150,001 attracts a whole 9 per cent in stamp duty – more than double the current charge.
Fortunately for the environmentally conscious, ‘low emission vehicles’ will still only attract a 4.2 per cent stamp duty.
Taking a look at Dutton’s own showroom, the changes are fairly staggering. A $119,990 Lancia Delta Integrale Evo currently attracts $5039.58 in stamp duty, but next week that increases by $3360. The car will then cost a total of $128,389 rather than $125,030.
It gets worse the higher you go, with a 2016 McLaren 570S listed at $259,990 going from totalling $270,910, up to $283,389. That’s an increase of $12,480.
At the extreme end of the scale, the McLaren Senna sitting in the showroom would normally cost $2,083,999 based on its $1.999 million asking price. In a few days, that cost increases by an astonishing $96k to $2,179,999.
The inbound increase has drawn criticism from the Victorian opposition, arguing that the new law will also affect the likes of farmers who’ve saved up to buy high-spec Toyota Landcruisers.
The FCAI has also called the new tax ‘deplorable’, with FCAI chief executive Tony Weber saying it’s “money grabbing at its worst.”
“But what’s more disturbing is that it is a tax on safety and technology. It targets vehicles that introduce innovative safety and technical features to the market.”
The tax takes effect in Victoria on July 1, the beginning of the new financial year.