When you buy new Skoda models an additional cost that must be paid is the stamp duty. If you have never bought a car before or it’s been awhile, you may not be aware of what this is and how it’s calculated. This fee can vary a great deal across different Australian states and territories. For this reason, we will focus here on how stamp duty affects car buyers in Western Australia only. Let’s take a closer look at what stamp duty is and how much it will cost when you buy your next car.
Stamp Duty Basics Explained
Every new or used car purchased will require that stamp duty is paid to complete the sale. Stamp duty is a tax that is levied by the state government on a set of official documents. It is payable when you buy a motor vehicle and on other purchases, such as shares and land. This is a one off tax that is only paid when the ownership of the car is transferred. Both new and used cars purchases are liable whether from a dealership or a private seller. The rate of stamp duty can be different based upon whether the car is new and the relative value of a used model.
Western Australia Stamp Duty
Here is Western Australia the stamp duty payable is based upon the dutiable value of the vehicle being sold. This could be the car manufacturers list price in the case of new cars or a reasonable market value for used car sales. Let’s take a look at some detailed examples to illustrate this further.
Up to $25,000 Sales
If the car sale is $25,000 or less, the stamp duty payable is 2.75% of the price.
- From 25,001 up to $50,000 Sales
In this band of sales, the duty payable is calculated as follows:
R= [2.75 + ((dutiable value – 25000)/6666.66)]
Here R is the dutiable value.
This can be difficult to understand so here is a more detailed example:
A new vehicle is purchased with a value of $30,000 this would be calculated as follows:
[2.75 + ((30000 – 25000)/6666.66)] which equals a stamp duty rate of 3.5%.
So in this case, the duty payable is 3.5% of the $30,000 price.
This gives us a stamp duty of $1050.
- Over $50,000
If the car sale is over $50,000, the stamp duty payable is 6.5% of the price paid.
If you are looking for new Skoda cars for sale, get in touch with us here at Skoda Perth. We have a large selection of new, demo and pre-owned cars available including all the Skoda latest model types. We would like you to join us for a no obligation test drive, and you can try out your favourite Skoda models for yourself. If you require finance for your car purchase, you will find that our rates are very competitive and your repayments will be tailored to suit your needs. Our sales team is here to advise you on our new Skoda models, and they will be happy to answer any other questions that you may have.