When they are looking for special Peugeot offers it can be easy to get excited at the deal and overlook some vital details. The details of the deal need to be understood, and any extras should be explicitly stated. However, there is one additional payment that will be required, and some drivers may not understand what it is and how it’s calculated. This is stamp duty, for those buying their first car and others that haven’t made a car purchase in a while, here is a quick refresher.
What is Stamp Duty?
Stamp duty is a tax that is levied by the state government on official documents pertaining to specific purchases. As well as cars, stamp duty is also payable on shares and land purchases. Essentially, it’s a one off tax payment that’s made when you transfer, and it’s payable on new or used cars from a car dealer or a private seller. The rate of stamp duty payable can vary depending upon the Australian state or territory where the car is purchased. For the sake of this article, we will purely focus on how stamp duty payments are calculated here in Western Australia.
Stamp Duty in Western Australia
Here in Western Australia stamp duty charges are based upon the dutiable value of the vehicle being purchased. In the case of a new car purchase, this would be the manufacturer’s list price. If you were buying a used car, this would be the reasonable market value for that car. In both cases, the amount of stamp duty paid would be calculated based upon this value and expressed as a percentage. Let’s take a look at the three different price bands and how stamp duty is calculated in each one.
Up to and Including $25,000
This is the lowest band, stamp duty here is calculated as 2.75% of the price that you will pay to purchase the car.
From $25,001 to $50,000
Of the three bands, this is the most complicated calculation.
R% of the dutiable value, here R = [2.75 + ((dutiable value – 25000)/6666.66)]
Here is a detailed example:
A new or used vehicle with a value of $30,000 is purchased, in this case, it would be [2.75 + ((30000 – 25000)/6666.66)] which equals 3.5%. The stamp duty payable is 3.5% of $30,000, which is $1050.
This is the highest band for stamp duty calculations and the duty payable will be 6.5% of the purchase price.
If they are looking for the best Peugeot offers, Perth based drivers should get in touch with us here at Perth City Peugeot. We have a large selection of new, ex demo and pre-owned cars available including all the latest models. We would like you to book a no obligation test drive with us online, and you can try out your favourite Peugeot models for yourself. If you need to finance your purchase, you will discover that our rates are competitive and repayments will be structured to suit your lifestyle. Our sales team is standing by to advise you on our latest Peugeot special offers, and they will be happy to answer any further questions that you may have.