Super luxury duty stay for some

Vehicles ordered before May 27 and delivered after July 1 will be exempt from Victoria’s new super luxury stamp duty.

The increased stamp duty, which comes into effect today, targets the top end of town with extra stamp duty charged on all cars over $100,000.

The stay on the extra charges, was negotiated by the VACC on behalf of its dealers. According to the VACC, Victorian Treasurer, Tim Pallas, agree to the stay on Friday, June 28.

In a note to members, VACC Industry Policy chief, Michael McKenna stated: “After meeting with VACC CEO Geoff Gwilym and a delegation of VADA Members with Victorian Treasurer Tim Pallas on Tuesday 25 June 2019 ,VACC has this evening been informed by the Treasurer’s Office that an exemption from the new super-luxury duty rates of duty as announced in the Victorian State Budget on 27 May 2019 has been granted for any vehicle ordered by a consumer on or before the 27 May that will be delivered and registered after 30 June 2019.

McKenna stated also: “Treasurer Pallas has granted this exemption as a decree from his own office and it has no legislative support.

“We are grateful to the Treasurer for his pragmatic stance,” McKenna wrote.

VACC described the “broad parameters” of the stamp duty moratorium as:
1. The new registered owner committed to take possession of vehicle before 27 May (2019), but where it was not able to be registered by June 30 -- and is therefore registered in that same person's name post July 1.
2. The passenger vehicle (new or used) is valued above $100k
3. That the applicant will need to provide clear evidence of the pre-commitment, and satisfy SRO [State Revenue Office] of genuineness of the sale/transfer, and that it couldn't be registered prior to June 30.
4. The duty relief needs to benefit the new registered owner and not represent a Windfall gain. [That is the “relief” will only be for the incremental duty].

McKenna warned members that any submission for exemption from the new stamp duty charges would be “heavily scrutinised by SRO”.

“Any LMCT deviation from the parameters could lead to the entire exemption granted being withdrawn to all LMCTs without notice.”

The process for claiming the exemption from the new state stamp duty thresholds is yet to be confirmed.