Calculate stamp duty
STAMP DUTY
In order to own a new car under your name, you need to pay a levy (or tax) to the state government. Stamp duty (as of 2012 in NSW) is calculated as a payment of:
$3%$3% of the car's market value up to $\$45000$$45000 PLUS $5%$5% of the car's market value over $\$45000$$45000.
Example 1
A car valued at $\$20000$$20000 corresponds to a stamp duty of $3%$3% of $\$20000$$20000, which equals $\$600$$600.
Whereas, a car valued at $\$60000$$60000 requires a stamp duty of $3%$3% of $\$45000$$45000 PLUS $5%$5% of $\left(\$60000-\$45000\right)$($60000−$45000).
| stamp duty | $=$= | $3%$3% of $\$45000$$45000 + $5%$5% of $\$15000$$15000 |
| $=$= | $\$1350$$1350 + $\$750$$750 | |
| $=$= | $\$2100$$2100 | |
Worked Examples
Question 1
You are given that the NSW car stamp duty rate is calculated as:
"3% of the car’s market value up to $\$45000$$45000 PLUS 5% of the car’s market value that exceeds $\$45000$$45000".
Find the stamp duty levied on a car worth:
$16000?
$59000?
$64000?
$97000?
Question 2
Valentina has $\$23398$$23398 in savings. She wishes to buy a medium sized car valued at $\$22000$$22000 and weighing $1400$1400 kg. At $26$26 years of age, she moved to an apartment in Crows Nest and has been driving since she was $21$21.
Using the above information:
Determine the stamp duty required, given that stamp duty is calculated in NSW as:
"$3%$3% of the car’s market value up to $\$45000$$45000 PLUS $5%$5% of the car’s market value that exceeds $\$45000$$45000."
Calculate the cost to register the vehicle, using the following table.
Weight of Vehicle Cost Up to 975kg $\$245$$245 975kg to 1154kg $\$274$$274 1155kg to 1504kg $\$323$$323 1505kg to 2504kg $\$461$$461 Does she have enough in savings to pay for the car (given that her CTP greenslip will cost $700)?
Yes, as she has enough savings to cover the extra costs.
ANo, as the total costs exceed the amount she has in savings.
BHow much more does she need to save to cover all costs associated with buying the car?
$\$585$$585
A$\$285$$285
B$\$195$$195
C$\$295$$295
D
Question 3
Vehicle stamp duty is $2%$2% of the purchase price up to $\$30000$$30000 plus $14%$14% for every dollar between $\$30000$$30000 and $\$40000$$40000 plus $5%$5% for every dollar over $\$40000$$40000.
Complete the table below:
Vehicle Value $\$0$$0 $\$30000$$30000 $\$45000$$45000 $\$60000$$60000 $\$75000$$75000 Stamp Duty ($\$$$) $\editable{}$ $600$600 $\editable{}$ $\editable{}$ $3750$3750 The piecewise graph below shows the stamp duty for cars from $\$0$$0 to $\$100000$$100000:
Loading Graph...Use the graph to find the following, to the nearest $\$100$$100:
i. the stamp duty on a $\$80000$$80000 car $=$= $\editable{}$ dollars.
ii. The cost of a car if stamp duty is $\$5000$$5000 $=$= $\editable{}$ dollars.