Dear Licensed Motor Vehicle Dealer,
As part of the ACT Government’s emissions reduction strategy, a motor vehicle duty exemption was introduced for new and used zero emission vehicles (ZEVs) and low emission vehicles (LEVs). This exemption will conclude on 31 August 2025.
From 1 September 2025, most vehicles—including ZEVs and LEVs—will incur duty at new rates. This includes vehicles that were previously exempt, such as Category A, AA, AAA, and eligible used hybrids and plug-in hybrid electric vehicles (PHEVs).
- A minimum 2.5% duty will apply to all new ZEV and LEV transactions.
- Vehicles with a dutiable value of $80,000 or more will be charged a duty rate of 8% for the amount over $80,000.
The conclusion of the duty exemption reflects the next stage in the ACT Government’s efforts to support emissions reduction—by applying higher duty rates to vehicles with higher emissions and encouraging cleaner vehicle choices.
To ensure eligible customers still receive the current exemption, dealers must establish or transfer vehicle registration in the Dealer Extranet by close of business 31 August 2025. Vehicles registered from 1 September 2025 onwards will be charged duty in line with the Taxation Administration (Amounts Payable—Motor Vehicle Duty) Determination 2025.
From 1 September 2025, motorcycles are subject to the following duty charges:
- New or used ZEV – $2.50 for every $100, or part of $100, of the dutiable value
- New (non-ZEV) – $3 for every $100, or part of $100, of the dutiable value
- Used (non-ZEV) – $3.17 for every $100, or part of $100 of dutiable value.
‘New’ motor vehicles include:
those that have not been previously registered in the ACT, in another State or Territory, or in another country; and demonstrator vehicles that licensed dealers dispose of within one year of the date the vehicle was first registered in the ACT, but excludes demonstrators registered outside the ACT.
‘Used’ motor vehicles are those that are currently registered or have previously been registered in the ACT, in another State or Territory, or in another country.
Duty amounts payable for other vehicles – from 1 September 2025
| Vehicle Performance Rating | Portion up to $45,000 | Portion over $45,000 but less than $80,000 | Portion over $80,000 |
|---|---|---|---|
| AAA | $2.50 per $100 or part thereof | $1,125.00 plus $4.00 per $100 or part thereof | $2,525.00 plus $8.00 per $100 or part thereof |
| AA | $2.67 per $100 or part thereof | $1,201.50 plus $4.41 per $100 or part thereof | $2,745.00 plus $8.00 per $100 or part thereof |
| A | $2.84 per $100 or part thereof | $1,278.00 plus $4.81 per $100 or part thereof | $2,961.50 plus $8.00 per $100 or part thereof |
| B | $3.00 per $100 or part thereof | $1,350.00 plus $5.22 per $100 or part thereof | $3,177.00 plus $8.00 per $100 or part thereof |
| Non-rated | $3.17 per $100 or part thereof | $1,426.50 plus $5.62 per $100 or part thereof | $3,393.50 plus $8.00 per $100 or part thereof |
| C (Includes used Hybrid and PHEV) |
$3.17 per $100 or part thereof | $1,426.50 plus $5.62 per $100 or part thereof | $3,393.50 plus $8.00 per $100 or part thereof |
| D | $4.53 per $100 or part thereof | $2,038.50 plus $7.81 per $100 or part thereof | $4,772.00 plus $8.00 per $100 or part thereof |
For more information about motor vehicle duty rates, visit the ACT Revenue Office website.
