Stamp duty exempt for highland M3 orders

[moadel82]

Hi folks,
I just realized that the stamp duty exempt for EV will cease from the 1st of Jan 2024. I have placed an order and waiting for delivery between Jan and Mar for the highland M3.

Does anyone know if the order fee is considered a “deposit” in this scenario and hence the vehicle will be exempt if not delivered before 1st of Jan 2024?

 

[moa999]

Should be noted this is NSW only.

And per the Budget announcement today, we will need to wait for clarification on transitional measures.

 

[Quickst]

I just realized that the stamp duty exempt for EV will cease from the 1st of Jan 2024

The other thing about 1Jan 2024 is that cars registered for the first time from 01 Jan 2024 are going to be the cars that will have to pay the 2.8c per km Road users tax that NSW is bringing in from 1 jan 2027 or when EV sales reach 30% of light vehicle sales - whichever is earlier.

Cars registered for the first time before 1Jan2024 are exempt.

So if driving 20,000 km per year the road users charge will be $560 per year on top of rego.

 

[Midnight Man]

The other thing about 1Jan 2024 is that cars registered for the first time from 01 Jan 2024 are going to be the cars that will have to pay the 2.8c per km Road users tax that NSW is bringing in from 1 jan 2027 or when EV sales reach 30% of light vehicle sales - whichever is earlier.

Cars registered for the first time before 1Jan2024 are exempt.

So if driving 20,000 km per year the road users charge will be $560 per year on top of rego.

View attachment 975855

I wasn't aware that an EV registered prior to 1 Jan 2024 would be exempt "forever" from the RUC in NSW, or am I misreading ?

 

[moa999]

Yep another kick to early adopters who paid full stamp duty, or even recent buyers of higher priced models.

Think it just captures those vehicles that previously wouldn't have been subject to RUC when they are transferred.

From the original FAQ

The RUC will commence from either 1 July 2027 or when EVs make up 30 per cent of all new vehicle sales (whichever occurs first).

EVs that receive the duty exemption for certain zero and low emission vehicles will be subject to the RUC after it commences. An EV will not be subject to the RUC if it does not receive such a duty exemption. Additionally, all EVs bought after the RUC commences will be exempt from duty and subject to the RUC.

So there might be an opportunity to sell low mileage pre-Sep 2021 SR+ (and maybe LR?) cars until the end of 2023 at a bit of a premium to drivers who are likely to do a lot of miles.

 

[danesuper6]

This article should clear everything up for you:

NSW Labor's weird EV policy means expensive electric cars will be spared road tax

Owners of EVs that have paid stamp duty will be exempt from the NSW road user charge. That includes all EVs priced above $78,000.

thedriven.io

 

[Midnight Man]

This article should clear everything up for you:

NSW Labor's weird EV policy means expensive electric cars will be spared road tax

Owners of EVs that have paid stamp duty will be exempt from the NSW road user charge. That includes all EVs priced above $78,000.

thedriven.io

Many thanks! Shame there's no way to opt in to paying the stamp duty

 

[Thirteen]

Well still even if it's $1000 a year still cheaper than buying petrol. Esp if u can use solar to charge!

 

[Vostok]

I wasn't aware that an EV registered prior to 1 Jan 2024 would be exempt "forever" from the RUC in NSW, or am I misreading ?

You are misreading. Only EVs registered prior to 1 Jan 2024 and on which stamp duty was paid, would be exempt from the RUC. And also not forever - if and when that vehicle is sold and transferred to someone else, RUC will then be applicable to that vehicle.

 

[Vostok]

Yep another kick to early adopters who paid full stamp duty, or even recent buyers of higher priced models.

How so? Vehicles registered before 1 Jan 2024 and on which stamp duty was paid will be RUC exempt until they are sold to someone else.

 

[Vostok]

This article should clear everything up for you:

That article is a piece of rubbish. The Government is honoring its contract with EV purchasers between 1 Sep 2021 and 1 Jan 2024 that if someone paid stamp duty on their EV they will remain exempt from the RUC, which was the law during that period.

How this was twisted in this article to be something “weird” or somehow unfair is utterly disgraceful. The alternative would be for the Government to retrospectively bring vehicles into the RUC net that were purchased under a law that at the time said they would not be. How do you think people would react to that?

 

[moa999]

How so? Vehicles registered before 1 Jan 2024 and on which stamp duty was paid will be RUC exempt until they are sold to someone else.

I thought under the Libs version the stamp duty exemption was only there for new vehicles.. thus non-RUC vehicles would retain that for life (or at least until any post 2027 transfer) with stamp duty getting paid on any transfers

 

[Vostok]

I thought under the Libs version the stamp duty exemption was only there for new vehicles.. thus non-RUC vehicles would retain that for life (or at least until any post 2027 transfer) with stamp duty getting paid on any transfers

Yes, duty exemption was only there for new EVs purchased after 1 Sep 2021 that had a dutiable value of less than $78k. Any EV on which stamp duty had been paid upon purchase - either before or after these arrangements came into effect - was and will remain RUC exempt.

I paid stamp duty on both of my EVs because both were purchased prior to 1 Sep 2021, hence both will remain RUC exempt until I sell them. Any EV purchased after 1 Sep 2021 with a dutiable value of more than $78k would also have had stamp duty paid on the purchase, and hence also remain RUC exempt.

What is changing from 1 Jan is there will be no more stamp duty exemptions and no more rebates, while the RUC will remain. But that is a prospective not retrospective change, since from 1 Jan buyers will know that they will pay stamp duty on their purchase and pay the RUC in the future (whenever it comes into effect) and hence can make their purchase decision in full knowledge of that.

 

[moa999]

But that is a prospective not retrospective change,

It does however impact the value of our RUC exempt vehicles.

Without this change I was planning on selling my 2020 SR+ as a non-RUC vehicle in 2025/2026 as the implementation date approached..

That would have value to a purchaser who is likely to do high mileage ($1250++ a year for someone doing 50k).

That opportunity now goes away on 1 Jan 2024.

 

[richardnau]

I'm certainly not trying to take the thread in a political direction, but it's worth remembering that the RUC is designed to provide a contribution towards road maintenance that for ICE vehicles is funded from taxes on petrol/diesel. At the moment, the NSW fuel excise is 46 cents per litre. If an ICE vehicle consumes (say) 10L/100km (= 10km/L), then the fuel excise is effectively 4.6 cents per km.

Now, whether the state government will use the RUC to maintain roads is certainly up for debate, but we won't change that outcome on this forum!

 

[Quickst]

That would have value to a purchaser who is likely to do high mileage ($1250++ a year for someone doing 50k).

I see it differently. Every EV transaction will be bought and sold on a level playing field from 1Jan2024
...

 

[Vostok]

It does however impact the value of our RUC exempt vehicles. Without this change I was planning on selling my 2020 SR+ as a non-RUC vehicle in 2025/2026 as the implementation date approached..

That wouldn’t have worked, unless you managed to sell your 2020 SR+ for more than $78k, which ain’t gonna happen.

Even under the current law, before it is amended, selling your EV for less than $78k would have meant the transaction would have been duty exempt and therefore your vehicle would have fallen into the RUC net for the new owner. Change of ownership creates a new trigger for application of the law.

This change will only affect EV owners who manage to sell an EV for more than $78k between 1 Jan 2024 and whenever the RUC commences. Under the current law, duty would have been payable on the transfer and RUC exemption maintained. After 1 Jan, that will no longer be the case. That is going to affect a pretty small number of people.