Service Demonstrator Vehicles exempt from Duty

19 June 2019

Members are advised that the Victorian State Revenue Office (SRO) has announced that the State Taxation Acts Amendment Act 2019  received Royal Assent on the 18 June 2019.

This includes great news on the hard-fought gain for Service Demonstrator Vehicles duty exemptions.

The SRO announcement contains a number of changes to duties, land tax, payroll tax and land valuations, including those flagged in the 2019-20 Victorian Budget.

The amendments, most of which apply from 1 July 2019, include:

  • Land transfer duty concession for transfers of commercial and industrial properties in Regional Victoria
  • Motor vehicle duty rate increases on passenger vehicles valued above $100,000, with concessions for ‘green’ and ‘primary producer’ passenger vehicles
  • An exemption from motor vehicle duty for service demonstrator vehicles.

More information from the SRO.

Service Demonstrator Vehicles

From 1 July 2019, the SRO formally announced that service demonstrator vehicles are exempt from motor vehicle duty on registration. SRO advises these vehicles are motor vehicles used solely or primarily by a licensed motor car trader to promote sales by making the vehicle available to customers as a courtesy vehicle while their car is being serviced.

Super-luxury duty thresholds

VACC has been informed by the Victorian Treasurer’s office that the VACC request for an exemption of the application of new-super-luxury duty to deals or contracts on any affected passenger vehicle from a pre-existing or pre-ordered vehicle that will be registered after 30 June 2019 has not been successful. It is not the Government intent to exempt pre-ordered vehicles.

Motorcycles, utes, panel vans or vehicles seating more than eight adults, including the driver, are not considered passenger cars.

VACC will inform members of any new release SRO Revenue Rulings.


See related VACC news story: Duty exemption granted for pre-ordered deals

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