Motor Vehicle Dealers Duty Exemption

Exemption Certificate

Motor vehicle dealers can register vehicles (or transfer a vehicle's registration into their name) without having to pay duty if they are issued with:

These duty-free transactions are only avaliable where the vehicle being registered (or transfered) is trading stock or demonstrator vehicles that are acquired and used solely for purposes associated with:

  • resale of trading stock in the normal course of the dealer's business; or
  • demonstrating the vehicle to prospective purchasers.

In addition to the acceptable uses of the above vehicles, a motor vehicle dealer may loan vehicles to charities if they are used for charitable purposes.

An exemption certificate remains in force for 12 months only and must be renewed annually.

To obtain a new Exemption Certificate, complete an Application for a Motor Dealer's Duty Exemption.

For Exemption Certificate renewals, a renewal application will be sent to you by the State Revenue Office.

Payment of a non-refundable administration fee is required upon application for a new certificate or upon application for renewal of an existing certificate.

Motor Vehicle Trader Licences

The introduction of the Motor Vehicle Traders Act 2011 required most Exemption Certificate holders to become licensed Motor Vehicle Traders.

A licensed Motor Vehicle Trader can access the duty exemption by quoting their licence number and therefore does not need to hold a separate Exemption Certificate to access the exemption avaliable on trading stock and demonstrator vehicles.

The exemption is still only available on vehicles purchased as trading stock and demonstrator vehicles. Duty is payable on vehicles used for any other purpose.

Information on Licenses and an application form is available from the Office of Consumer Affairs and Fair Trading.

Motor Vehicle Dealer Audits

The State Revenue Office conducts onsite audits of Motor Vehicle Dealers to ensure compliance with the requirements of the Duties Act 2001 and, if applicable, any Exemption Certificate conditions.

Dealers may be required to provide information to the State Revenue Office to enable it to confirm that the dealer's customers have complied with their obligations under the Duties Act 2001.

Dealers are also required to keep sufficient records to enable them to prove they have complied with their obligations under the Duties Act. For example, motor dealers usually maintain the following types of records:

  • Evidence of marketing strategies (ie copies of advertisements, details of listings on websites etc) used to attempt to sell a vehicle that was acquired/registered using the duty exemption.
  • Maintain records showing when and why vehicles were either (i) not on the motor dealer's property or (ii) were being driven to prove no unautorised use has occured. For example:
    • on display at: details of site/other dealership name;
    • test drive by: name & licence details of driver;
    • at mechanic: name of repairer & type of repair;
    • being detailed by: name of detailer.
  • Vehicle/transaction records, including:
    • make, model, and registration of vehicle;
    • name and address of vendor;
    • date of purchase;
    • purchase price;
    • odometer reading at time of purchase and sale;
    • date of sale;
    • sale price;
    • name and address of purchaser;
    • value of trade-ins;
    • details of accessories, discounts and other non cash adjustments; and
    • purchase receipts.
  • If vehicles are accepted on consignment, a seperate register is kept to record details of these vehicles.
  • A register showing disposal notices are lodged within seven days of vehicles being sold, or otherwise disposed of.

The above is indicative of the types of records that a motor vehicle dealer may keep. It is not intended to be an exhaustive list of all records a motor vehicle dealer should maintain.

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