Less Tax for Cars in Victoria

The state government of Victoria has just announced a reduction of duty rates payable when you purchase a new vehicle. The reduction mainly affects cars that are priced between $35,000 to $45,000. The new duty is a 2-tier system as suppose to the old, 3-tier system.

Here are the comparison between the old and new rates (taken from the State Revenue Office website - www.sro.vic.gov.au)

Old Scale		New Scale
Price	Duty Rate*	Price	Duty Rate*
$0 - $35,000	2.5%	$0 - $57,009	2.5%
$35,000 – $45,000	4%	$57,009 +	5%
$45,000 +	5%

It seems that duty reduction aims at family cars. Small cars like Holden Astra, Ford Focus, Honda Civic, Toyota Corolla (normally priced from $15,000 to $25,000) will miss out on the new rates. However, Australian favourite large cars such as Holden Commodore, Ford Falcon, Toyota Camry will benefit from this new duty. It is expected to cut the price of new family cars by around about $600.

The new rates will apply from the 1st of May 2007. For more information on this, go to the State Revenue Office Victoria website. A media release is also available on the site.