One-off increase in vehicle tax for light vehicles

About the change

From 9 August 2010, a one-off increase in vehicle tax applies for light vehicles. There is provision for energy efficient vehicles and vehicles modified for wheelchair transport to be exempt from this tax increase. Eligible carers may apply for a refund of the additional tax.

What is the change?

On 21 February 2010, the Premier of NSW announced that a one-off increase in vehicle tax rates will apply for motor vehicles weighing between 976kg and 2504kg tare weight.

In 2010 the tax increases were:

Tare weight (kg) Private usage* Business Usage* 
Up to 975No changeNo change 
976-1154$5 increase $5 increase 
1155-1504 $20 increase $20 increase
1505-2504 $30 increase $30 increase

 

* Figures shown are for 2010 annual registration terms only. Please contact Roads and Maritime Services for the current tax and other costs applicable to your vehicle. 

Which vehicles are exempt from the one-off increase?

Certain energy efficient motor vehicles are exempt from the one-off increase. These vehicles must be manufacturer designated petrol-electric hybrid vehicles and have a rating of 4½ or 5 stars on the Commonwealth Government’s Green Vehicle Guide in order to be automatically exempted from the additional tax at the time of renewal or establish of registration.

Currently five makes of vehicle are exempt from the one-off increase:

  • Toyota Prius – all models
  • Toyota Camry Hybrid – all models
  • Lexus RX450H – all models
  • Lexus GS450H – all models
  • Honda Civic Hybrid – all models except 2004 models

As more energy efficient vehicles become available for sale in Australia that meet these criteria, new exemptions may be passed onto customers.

Private vehicles modified for wheelchair transport are also exempt from the tax increase. If you are the registered operator of a vehicle that falls into this category, you will need to attend a motor registry and provide a completed Declaration of Eligibility for Concession (available at the registry or from the box at the bottom of this page) and a compliance certificate for the modifications. A condition code will be recorded against your vehicle, which will automatically exempt the vehicle from the additional weight tax at your next renewal. Please note that this exemption applies to vehicles registered for private use only.

Caravans,  trailers and motorcycles are not subject to this one-off increase in vehicle tax.

Who is exempt from the one-off increase?

If you receive a Commonwealth Carer Payment or Carer Allowance from Centrelink, you are exempt from the additional tax. You will need to pay the full amount at time of establish registration or renewal, and then apply for a refund of the additional tax. You can download an exemption form from the box at the bottom of this page, or phone Roads and Maritime Services (replacing Roads and Traffic Authority) Contact Centre on 13 22 13 to have a form posted to you.

Note: If you are also a Pension Concession Card holder, you are automatically exempt from vehicle tax, so the additional tax does not apply to you. See Pensioner concessions for information.

Why doesn’t the exemption apply to other fuel-efficient vehicles?

Given the environmental benefits of petrol-electric hybrid vehicles, the NSW Government want to encourage people to invest in this type of energy efficient technology.

Fuel-efficient petrol-only vehicles already benefit as they are subject to less excise tax through the federal fuel excise mechanism.

What is the Green Vehicle Guide?

The Green Vehicle Guide is an Australian Government service which gives all new vehicle models available in Australia from 2004 an overall rating between one and five stars, based on their emissions and fuel consumption.

The Green Vehicle Guide is regularly updated by the Commonwealth Government and vehicle manufacturers. It is Australia’s only nationally recognised, audited, and publicly accessible rating system for vehicular environmental impact.

Ratings in the Green Vehicle Guide are based on Australian vehicle emission standards that are similar to international standards developed by the United Nations.

Will my current vehicle registration concession or exemption continue to apply?

Yes. Existing vehicle registration concessions and exemptions will continue.

Primary producers will still be able to access existing concessions on eligible vehicles. See Primary producers for information.
Eligible pensioners will continue to be exempt from vehicle tax and not subject to these changes. See Pensioner concessions for information.

I have already renewed my registration for this year but have since become a carer. Am I entitled to a refund?

Yes. You can apply for a refund of the amount of the one-off increase.

I am a carer with more than one vehicle. Does the carer exemption apply to all of my vehicles?

No. The exemption for eligible carers applies to one vehicle per person.

My spouse and I are both carers and have multiple vehicles between us. How does the exemption apply to us?

The exemption for eligible carers applies to one vehicle per person.

If you have one vehicle registered in both your names, the exemption applies only if both registered operators are eligible carers.

If you have more than one vehicle registered in joint names, you will need to transfer the registrations so that each of you is the registered operator of one vehicle. You will be exempt from transfer fees and stamp duty in this case.