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Vehicle Licence Duty

Vehicle Licence Duty


Hi, I’m Kat. In this video I’m going to explain vehicle
licence duty. What it is, how it works, and where to find
more information. First, let’s look at what it is. If you buy a new or used vehicle, you must
pay Vehicle Licence Duty when a licence is granted or transferred. This is a one-off payment you make to the
State Government. In WA, the payment amount depends on what’s
called the vehicle’s ‘dutiable value’. For new vehicles, this is the recommended
retail price, including any optional features. It’s set by the manufacturer, importer,
or principal distributor. For used vehicles, this is the amount the
vehicle can reasonably be sold for on the open market on the day your application is
processed, not the purchase date. This is the case even if you buy an unlicensed
vehicle and apply to get it licensed some time later. For used vehicles, the dutiable value can
include things like dealer delivery charges, and features such as window-tinting, speakers,
paint and rear spoilers. Websites like redbook.com.au or carsguide.com.au
can help you estimate the value of your vehicle. You must declare the purchase price and an
estimate of the dutiable value when you transfer a licence using the Dot Direct website, as
well as when you complete these forms: • A Notification of Change of Ownership
MR9 Form, or (PAUSE) • An Application to Licence a Vehicle VL17
Form. Bear in mind that the dutiable value may be
different to the price you paid for the vehicle. For example, the dutiable value may be increased
by any improvements made to the vehicle after the purchase date, but before the licence
application date. What if you receive a vehicle for free or
at a significantly discounted price? Well, you still need to declare an estimate
of its dutiable value. It’s important to get this correct. Penalties may apply if the dutiable value
is declared incorrectly. The Office of State Revenue conducts regular
reviews of vehicle licence duty. To verify the dutiable value you declare,
keep records such as bank statements (PAUSE), invoices (PAUSE), and advertisements for five
years after licensing or transferring the vehicle. We may reassess duty if you don’t have supporting
documentation. For more information on Vehicle Licence Duty,
please visit the Department of Finance website or the Department of Transport website. Alternatively, you can ask a Department of
Transport representative or phone the Office of State Revenue on 9262 1100.

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