Skip to content Skip to main navigation

Ask RiotACT

Quality childcare in a
welcoming & supportive environment

Transfer of car between family members

By creg 17 October 2014 32

Hi,

I was just after some advice after speaking with Canberra Connect the other day when updating my registration details.

My wife and I separated around 6 months ago. Our car has always been in my name. While I was at the shop front on another matter, I asked the staff member what I would need to do to transfer the car into my wifes name. It has always been in my name (because I have always dealt with those matters) and we were together when we purchased the car.

The lady advised for me to transfer it into her name, as she is the operator of the car now, I would need to pay the 3% stamp duty AGAIN. There were no ‘if’s or ‘but’s about it. Thats the way it is. Even she stated ‘they have their hands in everything’.

Is there any way around this? I find it ludicrous that we paid $1,000 stamp duty for the car when we got it, and now we will have to pay stamp duty AGAIN to put it in her name. Obviously I can just leave the car in my name, but I would prefer to do things the right way.

An absolute money grab if you ask me. Pretty painful for people trying to work through separation/divorce. I note that other states (such as VIC) allow FREE transfer between married couples and other family members.

What’s Your opinion?


Please login to post your comments, or connect with
32 Responses to
Transfer of car between family members
Filter
Showing only Website comments
Order
Newest to Oldest
Oldest to Newst
dkNigs 8:37 pm 29 Oct 14

They probably go on the lowest redbook value like some insurance companies. So look at how much you can buy a crashed one at auction, and then go under that.

JC 8:31 pm 29 Oct 14

rhino said :

I’m not convinced that that’s actually something they do. Has anybody seen anything in writing that indicates that it’s the market value of the vehicle rather than the sale price? Would they just use redbook for that value?

Sorry for the late reply, but it is in writing on the back of the rego form. Under Step 4 for the acquirer it says duty is collected on market value or purchase price which ever is greater.

But yeah think you would have to be unlucky, BUT if you made the price so stupidly low it may attract attention.

rhino 12:59 pm 29 Oct 14

Hobbo said :

What is a reasonable definition of market value? The price the market is willing to pay for an item on any given day?
So if your wife, on paper, only gives you 100 bucks for the car – $3 stamp duty.

Good point. Market value is what someone is willing to pay that someone else is willing to sell at. If you’ve got a receipt as evidence that someone was willing to pay $1000 and you were willing to sell at that, then technically that is market value.

Hobbo 10:41 am 22 Oct 14

What is a reasonable definition of market value? The price the market is willing to pay for an item on any given day?
So if your wife, on paper, only gives you 100 bucks for the car – $3 stamp duty.

Felix the Cat 11:42 am 21 Oct 14

rhino said :

JC said :

rhino said :

I’d write up a receipt for the “sale” of the vehicle for $200 lol. Take that in and pay $6 and what can they do about it?

Make you pay market value. Thats what.

I’m not convinced that that’s actually something they do. Has anybody seen anything in writing that indicates that it’s the market value of the vehicle rather than the sale price? Would they just use redbook for that value?

I’d try it regardless. What would they do? Say “no we can’t accept this price, you’ll have to pay market value”? Because then you just walk out. They can’t physically force you to swipe your card and enter your pin. Go back another day and try a different amount and a different person serving lol.

Technically the rule is you are supposed to pay market value but in reality it is rarely if ever enforced. Staff wouldn’t have the time to research Redbook on the value of every vehicle that requires registration transfer. And as others have said, what if the vehicle is in poor condition. Engine and gearbox might be stuffed and every panel dented and/or rusty, nobody is going to pay market value for a car like this. Lucky to get a few hundred dollars from the wreckers or scrap metal yard.

dkNigs 11:23 am 21 Oct 14

rhino said :

JC said :

rhino said :

I’d write up a receipt for the “sale” of the vehicle for $200 lol. Take that in and pay $6 and what can they do about it?

Make you pay market value. Thats what.

I’m not convinced that that’s actually something they do. Has anybody seen anything in writing that indicates that it’s the market value of the vehicle rather than the sale price? Would they just use redbook for that value?

I’d try it regardless. What would they do? Say “no we can’t accept this price, you’ll have to pay market value”? Because then you just walk out. They can’t physically force you to swipe your card and enter your pin. Go back another day and try a different amount and a different person serving lol.

In theory they do it, but the amount of people I know who bought 15-20k cars and put them through as $1200-4k without being caught I doubt they follow it to the letter, unless all the automated computer wizardry these days automatically catches you out.

rhino 9:20 am 21 Oct 14

JC said :

rhino said :

I’d write up a receipt for the “sale” of the vehicle for $200 lol. Take that in and pay $6 and what can they do about it?

Make you pay market value. Thats what.

I’m not convinced that that’s actually something they do. Has anybody seen anything in writing that indicates that it’s the market value of the vehicle rather than the sale price? Would they just use redbook for that value?

I’d try it regardless. What would they do? Say “no we can’t accept this price, you’ll have to pay market value”? Because then you just walk out. They can’t physically force you to swipe your card and enter your pin. Go back another day and try a different amount and a different person serving lol.

rhino 9:15 am 21 Oct 14

dkNigs said :

rhino said :

To be honest, what is the point of this stamp duty to begin with? I can understand a small fee to cover the admin costs of processing a change, but a tax on a percentage of the value of the vehicle? What business is it of the Government if I sell my car to somebody else? Other than them providing registration services and recovering costs for that, what difference does it make whether it’s an old Excel or a new Veyron? Either way makes no difference to the government in this regard, we already pay registration!

The government is double dipping on something that shouldn’t be re-taxable, just like property. The problem is they make so much money doing this that they rely on it, and it pretty much can’t be reformed.

Once tax is paid on something it shouldn’t be charged for the exact same product again, it has already been paid!

Yeah exactly. There’s no logical argument for this tax to even exist. It’s just milking us for money for no damn reason. I’d appreciate a tax simplification regime where they’re a bit more honest with us. You do have a point that they rely on this revenue now, so they’d have to raise taxes elsewhere, but it’d be a bit more honest. The ACT government honestly doesn’t seem to be struggling too badly with revenue at the moment if you look at all of the massive things they’re doing. Cut spending instead, would be my preference. Not in quality of things that they do, but in number of things that they do. Fair few things they’re spending money on we don’t really need. You’re definitely right about property too. That’s another area where you wonder why they tax you so many times

JC 12:19 am 21 Oct 14

rhino said :

I’d write up a receipt for the “sale” of the vehicle for $200 lol. Take that in and pay $6 and what can they do about it?

Make you pay market value. Thats what.

dkNigs 10:11 pm 20 Oct 14

rhino said :

To be honest, what is the point of this stamp duty to begin with? I can understand a small fee to cover the admin costs of processing a change, but a tax on a percentage of the value of the vehicle? What business is it of the Government if I sell my car to somebody else? Other than them providing registration services and recovering costs for that, what difference does it make whether it’s an old Excel or a new Veyron? Either way makes no difference to the government in this regard, we already pay registration!

The government is double dipping on something that shouldn’t be re-taxable, just like property. The problem is they make so much money doing this that they rely on it, and it pretty much can’t be reformed.

Once tax is paid on something it shouldn’t be charged for the exact same product again, it has already been paid!

rhino 3:19 pm 20 Oct 14

I’d write up a receipt for the “sale” of the vehicle for $200 lol. Take that in and pay $6 and what can they do about it?

rhino 3:18 pm 20 Oct 14

To be honest, what is the point of this stamp duty to begin with? I can understand a small fee to cover the admin costs of processing a change, but a tax on a percentage of the value of the vehicle? What business is it of the Government if I sell my car to somebody else? Other than them providing registration services and recovering costs for that, what difference does it make whether it’s an old Excel or a new Veyron? Either way makes no difference to the government in this regard, we already pay registration!

Related Articles

CBR Tweets

Sign up to our newsletter

Top
Copyright © 2018 Riot ACT Holdings Pty Ltd. All rights reserved.
the-riotact.com | aboutregional.com.au | b2bmagazine.com.au | thisiscanberra.com

Search across the site