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“No such thing as GIVING someone a trailer in the ACT”

By Threeletteracronym - 15 January 2014 44

Just want to sanity check something, please, before I go on and kick up a stink with our friends at Canberra Connect. My mum has given me her trailer. It’s a standard small trailer, from 1978. It probably needs a new floor.  Currently, it’s registered in Victoria.

When I rang to ask about the process for transferring the rego, I was told that I would need to bring the purchase receipt with me. I noted there was no receipt as I hadn’t purchased it. No money has changed hands.

The person I spoke with insisted (quite rudely) that there is “no such thing as giving someone a trailer in the ACT”, and that duty must be paid.

Forgive my ignorance and lack of research, but this seems weird to me. Why is the government asking me to lie in official documents in order to collect probably $18 (at most) in duty?

 

What’s Your opinion?


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44 Responses to
“No such thing as GIVING someone a trailer in the ACT”
1
farout 12:42 pm
15 Jan 14
#

Just pay her a dollar, get her to give you a receipt for it, then follow the bouncing ball at Canberra Connect.

Or better still, put in a negative value, something line -$200, and take it to a CC saying she paid you to take it away. If you’re lucky the system will give YOU some money.

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2
quewastaken 12:44 pm
15 Jan 14
#

You’ll need a document signed by the previous owner stating it is a gift and nominating the market value of the trailer. In my opinion, you should value the trailer at 50 dollars (I believe you’ll pay less than $5 in transfer duty for a $50 trailer)

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3
Genie 1:01 pm
15 Jan 14
#

We tried this many years ago with a car.

My middle sister gave my eldest sister her old car. They just wanted to transfer the rego. No money changed hands but duty had to be paid on what they deemed the car was valued at.

Greedy in my eyes !

Even my mother had to pay stamp duty (again) on the house when removing ex-hubby’s name from the title. Even though again no money changed hands.

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4
p1 1:12 pm
15 Jan 14
#

farout said :

Or better still, put in a negative value, something line -$200, and take it to a CC saying she paid you to take it away. If you’re lucky the system will give YOU some money.

I’m a big fan of this idea. Say the market value of removing it from her yard and replacing the floor was –$1000 and see off their computer explodes.

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5
enrique 2:05 pm
15 Jan 14
#

“Computer says no”

Pay peanuts, get monkeys.

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6
zorro29 2:20 pm
15 Jan 14
#

Totally agree with you buddy.

Here’s another nonsense (aka revenue-raising example):
My partner sold his car and we are now sharing a car…so I wanted to have the car in both our names. My name would stay on the rego, just wanted to add his. I was told that was essentially a sale and he would have to pay duty on that…when the car was still worth $40k, there was no way I was coming at that.

Nonsense. Agree with the above….would be interesting to see what would happen with the scenario in #1 and a negative amount.

It just annoys me that they make it so hard/punish people doing the right thing…and we wonder why all the bogans never register anything or bother paying fines. Maybe we’re the crazy ones.

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7
Antagonist 2:50 pm
15 Jan 14
#

The person I spoke with insisted (quite rudely) that there is “no such thing as giving someone a trailer in the ACT”, and that duty must be paid.”

Just wait until you finally get down to the ACT Government Shopfront. The concierges are not only terse and rude, but regularly get into screaming matches with customers. You will then, somehow, have TaMS staff try to justify their behaviour when you take it up with management.

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8
dtc 3:08 pm
15 Jan 14
#

There is a valid reason for this. The whole duty system fails if the buyer and the seller – whether legitimately or not – declare the value of the item sold at under market value on the contract.

For example, say your parents own an investment property and then decide to let you buy it for 70% of the market value as your first home. Should you pay stamp duty on the amount you paid or the market value?

There is no difference with vehicles, except of course the amounts involved are much smaller. But the prinicple remains.

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9
MrBigEars 3:15 pm
15 Jan 14
#

dtc said :

There is a valid reason for this. The whole duty system fails if the buyer and the seller – whether legitimately or not – declare the value of the item sold at under market value on the contract.

For example, say your parents own an investment property and then decide to let you buy it for 70% of the market value as your first home. Should you pay stamp duty on the amount you paid or the market value?

There is no difference with vehicles, except of course the amounts involved are much smaller. But the prinicple remains.

I imagine as stamp duty is one of the revenue streams available to the ACT government, they’d be pretty keen to defend it.

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10
zorro29 3:23 pm
15 Jan 14
#

dtc said :

There is a valid reason for this. The whole duty system fails if the buyer and the seller – whether legitimately or not – declare the value of the item sold at under market value on the contract.

For example, say your parents own an investment property and then decide to let you buy it for 70% of the market value as your first home. Should you pay stamp duty on the amount you paid or the market value?

There is no difference with vehicles, except of course the amounts involved are much smaller. But the prinicple remains.

I don’t see how it does….car values are pretty clear-cut. I don’t think people publish the list of sale prices registered with the govt when they sell the car. And do the govt report on the value of vehicles on the road??? It’s just a revenue source.

Property prices are actually kinda the same….anything is only worth what the market will pay for it, so what does it matter what you paid for it.

But maybe I’m missing something in my blind hatred of duties…

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11
Antagonist 3:53 pm
15 Jan 14
#

zorro29 said :

But maybe I’m missing something in my blind hatred of duties…

I hate them also, but you are indeed missing something. Stamp duty payable for vehicles is based on actual price paid or market value, whichever is *greater*. Even if the trailer was handed over as a freebie as per the OP, ACT Govco are going to slap you for whatever the deem is ‘market value’.

Sucks, because I though the idea of declaring a negative value was a great workaround :)

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12
blandone 5:06 pm
15 Jan 14
#

Last time i exchanged rego i intentionally left the purchase price blank – the kind lady behind the counter hinted that “nobody really checks the market value” so I wrote down $1000. Paid stamp duty on $1k, not $20,000 – winning.

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13
IrishPete 5:06 pm
15 Jan 14
#

Antagonist said :

zorro29 said :

But maybe I’m missing something in my blind hatred of duties…

I hate them also, but you are indeed missing something. Stamp duty payable for vehicles is based on actual price paid or market value, whichever is *greater*. Even if the trailer was handed over as a freebie as per the OP, ACT Govco are going to slap you for whatever the deem is ‘market value’.

Sucks, because I though the idea of declaring a negative value was a great workaround :)

Isn’t that what’s called “negative gearing”?

IP

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14
gazket 5:18 pm
15 Jan 14
#

tell them you paid $100 it will cost you $3 in stamp duty for lying. They need the $3 to water the trees.

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15
gazket 5:23 pm
15 Jan 14
#

zorro29 said :

dtc said :

I don’t see how it does….car values are pretty clear-cut.

except if your a Labor politician you seem to get $15k under market value deals on a new Volkswagen Tourag.

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