Registration is going up for everyone, as well as stamp duty for some. Photo: ACT Government.
Motorists will be sharing a big part of the load in making up for the ACT’s budget deficit in the coming years, with several changes coming for stamp duty, registration and parking fees.
And no, electric vehicles won’t be exempt this time around.
There’s a lot of big numbers and complicated terminology flying around, but we’ve dived in to get you what you need to know.
To buy?
Buyers of zero-emission vehicles have been exempt from stamp duty since August 2022 and buyers of some second-hand hybrids and plug-in hybrid vehicles (PHEVs) exempt from July 2023, but this is about to change.
Conveyance duty, otherwise known as stamp duty, applies whenever you register a car in the ACT for the first time, whether it’s new or transferred from another state.
It ranges from three per cent to 4.5 per cent of the total cost for a vehicle under $45,000, depending on CO2 emissions.
Vehicles worth more than $45,000 are charged between five and 7.8 per cent of the total cost, on top of a flat fee ranging from $1350 to $2038 – again, depending on the vehicle’s emissions.
From 1 September 2025, EVs will be slapped with a minimum 2.5 per cent duty.
All vehicles worth more than $80,000 will also be hit with an eight per cent duty.
The government expects total duty payments to bring $57.4 million into the coffers this coming financial year, $64.3 million in 2026/27, $67.4 million in 2027/28 and $70 million in 2028/29.
It’s worth keeping in mind this is on top of the “establishing registration” fee.
For vehicles not previously registered in the ACT, this is $110.60 and to re-register a vehicle previously registered in the ACT, it’s $55.90.
To keep?
Car registration costs are also set to rise for everyone by up to 5.2 per cent.
Buyers of new EVs used to receive two years’ free registration, but this wound up on 1 July 2024 when the government also shifted to a registration system based on emissions, rather than weight (this was to avoid penalising EVs with their heavy battery packs).
The government expected 95 per cent of vehicle owners to pay “the same or less than what they would have” under this new system.
Under the coming changes, it says no private vehicle will see an increase “greater than $50 per year” and no business vehicle more than $75.
“This change will support Canberrans to lower their vehicle and petrol expenses and transition to low or zero emission vehicles as more options come into the market,” it says.
Registration costs alone are expected to bring in $200 million of revenue over the coming financial year, $218 million in 2026/27, $234 million in 2027/28 and $250 million in 2028/29.
A nation-wide road-user charge may be on the way for EVs. Photo: Michelle Kroll.
Other components of the total cost of vehicle registration will also rise.
The Lifetime Care and Support Levy will increase from $105.40 to $110.40 for 2025-26, “reflecting higher costs of providing lifetime care services”.
The Motor Accident Levy will remain unchanged at $14, but the Road Safety Contribution Levy will increase from $2.50 to $3.20.
What about a road-user charge for EVs?
In his budget speech, Treasurer Chris Steel said this would be beyond the ACT’s control – the Federal Government took the Victorian state government to court last year when it tried to impose a road-user charge – but it’s something he’d like to see soon.
“The Commonwealth … took away that ability for the states and territories to be able to levy that tax and then they haven’t put in place an alternative – which they promised to do – and the longer they leave it, the harder it will be for them to put it in place politically,” Mr Steel said.
“So we’ll certainly be pushing them to deliver something and hopefully, through that tax, provide funding back to the states and territories as they did with fuel excise.”
To park?
The government is expecting a decrease in its traffic and parking infringement fines due “several car parks in the Civic area being repurposed as construction sites for the light rail project”.
But parking fees in all government-owned car parks across the ACT will rise by six per cent over 2025/26.
This is “in order to contribute to the cost of managing and maintaining parking infrastructure”.
“The government will also undertake a review of parking demand across key urban and town centres to support future consideration of paid parking locations and fees.”
In other words, there’ll be more to come in the future.
Anything else?
Ah, yes.
A full five-year drivers licence will cost $261.70 from 1 July (up $34), while a 10-year licence will cost $486.60 (up $47).
The government says this will “help fund the growing costs of managing medical and occupational therapy assessments, which are essential for ensuring road safety as the number of drivers requiring medical monitoring continues to rise in the ACT”.
On the plus side, registration costs for light trailers and caravans is going down by up to $150 – to bring us nearly on par with NSW.
An average single-axle trailer (with a tare weight up to 250 kg) will drop from $104 to free, while double-axle trailers will drop to $115 (down $150) and caravans to between $744 and $856 (down $112).
Expect to pay more when you visit this place from 1 July. Photo: Michelle Kroll.
What do people think?
Even with many of the EV incentives disappearing, the ACT Branch of the Australian Electric Vehicle Association (AEVA ACT) is generally pleased with the changes.
Spokesperson Peter Campbell said AEVA understood the need to raise revenue and that the current arrangement couldn’t last forever.
“We are pleased the government has listened to AEVA’s suggestions over the past 18 months that stamp duty be set in line with tailpipe emissions so that hybrid vehicles attract higher stamp duty than EVs (but still less than most non-hybrid ICE vehicles),” he said.
“The incentive for buyers is now clear: EVs pay the least stamp duty.”
Meanwhile, the Electric Vehicle Council (EVC) is less impressed, arguing the change would add about $1725 to the duty paid on a typical $60,000 EV.
“This decision risks slamming the brakes on the progress that the ACT is making in EV uptake,” EVC chief executive Julie Delvecchio said.
“We’re calling on the ACT Government to reconsider this policy shift, stay on track with its progress and support its goal of environmental sustainability by maintaining financial incentives for EV adoption.”
The Australian Automotive Dealer Association (AADA) makes a similar argument and says the additional eight per cent tax on cars worth over $80K will push prospective customers to shop over the border in NSW dealerships.
AADA CEO James Voortman said the new tax would cement the ACT as one of the worst places in Australia to do business.
The association estimates the new tax will “directly impact middle-income families” – for instance, increasing the price of a Toyota Kluger by up to $1300 and the Ford Ranger by up to $1400.
“This is also a massive blow to the Federal Government’s ability to conclude a free trade agreement with the EU, with the ACT showing that states and territories will simply implement ridiculous taxes of their own,” AADA concluded.
