Light motor vehicle weight tax

One-off increase in motor vehicle weight tax for light vehicles

From 9 August 2010, a one-off increase in the motor vehicle weight 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 charge. See below for details.

What is the change?

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

The proposed tax increases are set out below:

* Figures shown are for annual registration terms only. Please contact Roads and Maritime Services (replacing Roads and Traffic Authority) for the total charge applicable to your vehicle.

Who is exempt from the one-off increase?

Energy efficient motor vehicles that meet the certain criteria are exempt from the one-off increase. The criteria are that the vehicle is a manufacturer designated petrol-electric hybrid vehicle and has a rating of 4½ or 5 stars on the Commonwealth Government’s Green Vehicle Guide. Vehicles in this category will be automatically exempted from the additional charge 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 an engineering 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.

If you receive a Commonwealth Carer Payment or Carer Allowance from Centrelink, you are exempt from the additional weight tax charge. You will need to pay the full amount at time of establish registration or renewal, and then apply for a refund of the additional charge. 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 weight tax, so the new charge does not apply to you. See Pensioner concessions for information.

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

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.

Why is this one-off increase to weight tax being applied?

This one-off increase in weight tax provides an important source of funding for the Metropolitan Transport Plan, which will transform transport infrastructure in Sydney. The Metropolitan Transport Plan is an important step in helping Sydney maintain its world class status, and will have wide-ranging economic and social benefits for NSW.

In addition to generating important funds, changes in weight tax rates can be a means of positively influencing consumers’ vehicle choice. It is hoped that the weight tax changes will help consumers understand the impact of their vehicle choice on the environment and encourage the purchase of more energy efficient vehicles.

I don't live in Sydney. How will I benefit from paying an increased motor vehicle weight charge?

The one-off increase in the motor vehicle weight charge will assist in funding the NSW Government's $50.2 billion investment over the next 10 years in new roads, buses, trains, light rail and cycleways.

The increase in the motor vehicle weight charge will contribute to the NSW Government's Sydney Metropolitan Transport Plan. However, in the 2010-2011 financial year, the NSW Government has allocated $3.5 billion in funding towards rural and regional roads outside the Sydney metropolitan area. The budget allocation for urban roads in 2010-2011 is $1.2 billion.

The NSW Government also provides financial assistance to local councils with responsibility for regional and local roads. In the 2010-2011 financial year, the Government has budgeted $159.9 million in funding to councils, delivering on the commitment to assist local governments to maintain regional roads.

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 weight 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?

Provided you renew your registration on or after 9 August 2010, you can apply for a refund of the amount of the one-off increase. As the increase applies from 9 August 2010 only, there is no refund if you renew before this date.

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.