What are on-road costs?

Buying a car should be as simple as picking the one you like, paying the sticker price, and driving off with it. Maybe that’s how it works in some utopian parallel universe – one where street parking is always free – but in our reality, most window stickers are hiding a bureaucratic endurance test of extra taxes and fees that could give your budget a nasty whack.

These charges, called on-road costs, vary from state to state and can add thousands to your final bill. With so much variation, it’s important to understand how to calculate on-road costs before parting with your hard-earned cash.

So, what are on-road costs, and why do they exist?

On-road costs are additional expenses on top of a car’s list price to make it legally drivable on Australian roads. These include registration, Compulsory Third Party (CTP) insurance, stamp duty, and sometimes dealership delivery fees (for new cars), or transfer fees (for used ones). Unless you plan on towing your car everywhere, you’ll have a hard time avoiding them.

State and territory governments set these costs independently, so there’s no universal rulebook, because Australia is nation of states, not a nation state, apparently. As a result, your on-road costs in VIC might be very different compared to what you’d pay in WA or QLD. Some dealerships are kind enough to factor these costs into an uncomplicated ‘drive-away’ price. But if you’re only seeing the list price – or buying used – you’ll have to account for on-roads separately.

Ultimately, these fees exist to keep your car registered, insured (at least minimally), and compliant with Australian safety standards, all while helping to fund road infrastructure, safety programs and insurance schemes.

How much are on-road costs? That would be an easy question to answer if there were only one car model and no state borders – but alas, it all depends on where you live, what you’re buying, and whether you’re eligible for a concession. There’s also no single car on-road cost calculator, so you’ll need to calculate stamp duty value and registration fees separately.

On-road Costs by State

New South Wales

Stamp duty in NSW is based on the vehicle's value. For vehicles up to $44,999, the duty is charged at $3 per $100 of the market value. If the car is worth more than $45,000, the rate increases to $1,350 plus $5 per $100 over the threshold. To find the exact amount for your vehicle, you can use the Revenue NSW Motor Vehicle Duty Calculator.

Registration fees are made up of several smaller fees and are due every six or 12 months. The total cost depends on the vehicle's tare weight, with heavier vehicles attracting a higher charge (due to the increased wear and tear they inflict on roads). As a rough estimate, rego fees for a privately used four-cylinder car will run up $570 a year. A more comprehensive overview is available here.

How much does CTP cost? In NSW, it’s also known as a Green Slip, isn’t included in registration fees and must be purchased separately from an approved insurer. Prices vary depending on the provider, your location and vehicle details, but typically range from $350 to $600 for a standard passenger vehicle.

Registration concessions are available for pensioners, war veterans, and primary producers. More details on eligibility and application can be found on the Service NSW website.

Victoria

In Victoria, stamp duty depends on the vehicle type and value. For example, new or used passenger vehicles up to $80,567 are taxed at $8.40 per $200 of the market value or part thereof. To see how your vehicle will be charged, you can use the current rate table from VicRoads. Calculating the exact figure, including the registration transfer fee for used vehicles, is as easy as plugging a few details into the aptly named State Revenue Office Motor Vehicle Duty Calculator.

Registration fees are billed every three, six or 12 months (the frequency is entirely up to you), and vary based on your garaging address. That’s partly due to the Transport Accident Commission (TAC) charge, which funds medical treatment and support for those injured in road accidents. The TAC charge is higher in metropolitan areas where accident risk is greater and lower in rural regions where traffic density is lower. The final car rego price you pay is also inclusive of CTP insurance. Taking all this into account, the 12-month registration fee for a passenger vehicle generally falls between $780.10 and $906.60.

Goods-carrying vehicles, like utes, may qualify for rego discounts in non-metropolitan areas – and there are plenty of other concessions too. You can check your eligibility here.

Queensland

In the Sunshine State, stamp duty is determined by both the vehicle’s value and cylinder count. For a hybrid four-cylinder vehicle, the rate is $2 per $100 of the dutiable value up to $100,000, increasing to $4 per $100 for any portion over that amount. To calculate the exact stamp duty for your vehicle, you can use the Queensland Government Vehicle Registration Duty Calculator . There are exemptions for certain transfers, such as gifting the vehicle to a family member.

Registration fees in Queensland include a combination of charges, including the base rego fee, a traffic improvement fee, and Compulsory Third Party (CTP) insurance, all bundled into one payment. The total cost depends on the vehicle’s cylinder count, meaning a four-cylinder car will generally cost around $800 per year, while a six-cylinder car may be closer to $1,000, and a V8 vehicle could exceed $1,200 annually.

It's worth noting Queensland currently has a 20 per cent discount on registration fees in place as a temporary measure to offset cost-of-living pressures. This reduction applies to all standard vehicle registrations.

Beyond this discount, concessional registration is also available for pensioners, seniors, and special interest vehicles. You can check potential savings on the Queensland Government website.

Western Australia (WA)

Over in the West, stamp duty is based on the purchase price of the vehicle. Once the vehicle's value exceeds $50,000, stamp duty jumps to 6.5 per cent of the total dutiable value, making WA one of the more expensive states for high-value vehicle purchases. The WA Department of Finance has a Vehicle Duty Calculator to give you an exact figure based on the vehicle’s price.

Registration fees in WA include a base registration charge, licence fee, Motor Injury Insurance (previously known as CTP), and a $8.25 recording fee, all combined into one annual payment. Similar to NSW, that figure is calculated based on the tare weight of the vehicle. A car weighing around 1400 kg will generally cost around $780 per year, all things considered. There are of course, plenty of concessions for registration and duty exemptions – you can check your eligibility here.

South Australia

Stamp duty in South Australia is calculated based on the value of the vehicle, tiered in a way that can only be described as head-spinning. For vehicles valued up to $1,000, the duty is $1 per $100 (or part thereof), with a minimum charge of $5. For those between $1,001 and $2,000, the rate increases to $10 plus $2 per $100 over the first $1,000. Vehicles priced between $2,001 and $3,000 attract $30 plus $3 per $100 over $2,000, while anything over $3,000 is subject to $60 plus $4 per $100 above that threshold. Given that most cars are worth more than $3,000, the whole arrangement seems baffling, and a little pointless, but you can cut to the chase using Revenue SA’s official calculator. There are also a slew of exemptions, which you can explore here.

Mercifully, registration fees are a much simpler affair. They’re a single payment made up of a base registration charge, a lifetime support scheme (LSS) levy, and compulsory third-party (CTP) insurance. Exactly how much you pay will depend on your vehicle type and cylinder count, as well as your garaging address. As an example, the annual registration cost for a four-cylinder car in the city will run you around $670. The rundown on registration concessions for pensioners, seniors, and those with disabilities is available here.

Tasmania

Once you cross the Bass Strait, stamp duty on passenger vehicles is based on value. Beaters up to $600 are charged a flat $20 fee. Those between $601 and $35,000 attract a rate of $3 per $100. For vehicles priced between $35,001 and $40,000, stamp duty is $1,050 plus $11 per $100 over $35,000. Any vehicle exceeding $40,000 is charged $4 per $100 on the full purchase price. Using the Tasmanian State Revenue Office calculator we can see a $50,000 vehicle would incur $2000 in stamp duty. Exemptions can be explored here.

Cylinders are the sorting hat for registration fees in Tasmania, which are then split across vehicles that have a gross vehicle mass (GVM) of less than 3,000 kg and those between 3000 kg and 4500 kg. The fee you pay will be made up of a base registration charge, fire levy, road safety levy, motor tax, and Motor Accidents Insurance Board (MAIB) premium, combined into a single payment. For a standard four-cylinder car, the annual registration fee will be approximately $600. Concessions, rebates and exemptions can be found on the Tasmanian Government website.

On-road Costs for New vs Used Cars

The only real difference between new and used cars is that used cars may require a registration transfer fee and a pink slip (otherwise known as roadworthy). What are the on-road costs for a new car? Often these include dealer delivery charges, in addition to stamp duty and registration fees, which also apply to used cars.

Where can you find out more information about on-road costs?

Your relevant state department is the only reliable oracle for up-to-date information. Until an on-road costs calculator that handles both rego and stamp duty crashes onto the scene, that’s the best place to go – and with on-road costs meaning anything from South Australia’s lifetime support scheme levy to used car transfer fees, you’ll want to check the fine print.

NSW: Service NSW

VIC: VicRoads

QLD: Department of Transport and Main Roads

WA: Department of Transport

SA: South Australian Government

TAS: Tasmanian Government Website