Motor Vehicles Taxation Regulation 2025

Part 1 Preliminary

1 Name of regulation

This regulation is the Motor Vehicles Taxation Regulation 2025.

2 Commencement

This regulation commences on 1 July 2025.

Note—

This regulation repeals and replaces the Motor Vehicles Taxation Regulation 2016, which would otherwise be repealed on 1 September 2025 by the Subordinate Legislation Act 1989, section 10(2).

3 Definitions

In this regulation—

caravan means a trailer, including a camper trailer, that is—

(a)  permanently fitted for human habitation in connection with a journey, and

(b)  used substantially for private purposes.

Local Land Services has the same meaning as in the Local Land Services Act 2013.

Local Land Services vehicle means a vehicle owned and used by or on behalf of Local Land Services.

PCYC vehicle means a vehicle owned and used by or on behalf of Police Citizens Youth Clubs NSW Ltd.

registration includes a renewal of registration.

school student driver education vehicle means a vehicle used for school-based driver education at a government school or non-government school.

tax concession vehicle means the following—

(a)  a caravan,

(b)  a Local Land Services vehicle,

(c)  a mobile library that is—

(i)  a motor lorry, or

(ii)  a trailer than is not plant,

(d)  a PCYC vehicle that is—

(i)  a bus, or

(ii)  a motor car, or

(iii)  a station wagon,

(e)  plant,

(f)  a primary producer’s vehicle that is—

(i)  a motor car, or

(ii)  a motor lorry, or

(iii)  a station wagon, or

(iv)  a tractor, or

(v)  a trailer that is not plant,

(g)  a school student driver education vehicle that is—

(i)  a bus, or

(ii)  a motor car, or

(iii)  a station wagon,

(h)  a tow truck that is a motor lorry,

(i)  a very light trailer.

tax unit—see section 6(1).

the Act means the Motor Vehicles Taxation Act 1988.

tow truck means a tow truck referred to in the Tow Truck Industry Act 1998, section 4(1)(a).

trailer has the same meaning as in the Road Transport Act 2013.

urban tow truck means a tow truck used in a transport district referred to in the Transport Administration Act 1988, section 108(1)(a)–(c).

very light trailer means the following vehicles weighing 760kg or less—

(a)  plant other than self-propelled plant,

(b)  a trailer other than a caravan.

weight, of a motor vehicle—see section 4.

Note—

The Act and the Interpretation Act 1987 contain definitions and other provisions that affect the interpretation and application of this regulation.

4 Weight of motor vehicles—the Act, s 23(2)(e)

(1)  The weight of a motor vehicle for the Act and this regulation is—

(a)  if Transport for NSW has given a direction in accordance with this section specifying the weight of the vehicle—the weight specified, or

(b)  otherwise—the weight calculated in accordance with subsection (2) or (3).

(2)  The weight of a motor vehicle, other than a trailer, is the unladen mass of the motor vehicle including—

(a)  the tools and accessories usually carried by the vehicle, and

(b)  the fuel, water and oil in or on the vehicle.

(3)  The weight of a motor vehicle that is a trailer is the unladen mass of the trailer, including the tools and accessories usually carried by the trailer.

(4)  The weight of a motor vehicle calculated under subsection (2) or (3) must be rounded to the nearest 10kg, with 5kg being rounded up.

(5)  A direction may be given for this section—

(a)  in relation to motor vehicles of a specified make and description, and

(b)  by written order of Transport for NSW.

Part 2 Motor vehicle tax

Division 1 Tax payable—the Act, s 4

5 Motor vehicle tax payable

(1)  The motor vehicle tax payable for a motor vehicle of the type and with the characteristics and weight shown in Schedule 1 is the number of tax units specified for the vehicle—

(a)  for a vehicle weighing 2,500kg or less—in Schedule 1, Part 1, or

(b)  for a vehicle weighing more than 2,500kg—in Schedule 1, Part 2.

(2)  The tax payable for a motor vehicle weighing more than 3,560kg is increased by—

(a)  if the vehicle is a bus—200 tax units, or

(b)  otherwise—333 tax units.

(3)  Subsection (2) does not apply to a motor vehicle used substantially for private purposes.

(4)  The motor vehicle tax payable for a tax concession vehicle of a kind shown in Schedule 1, Part 3 is the amount calculated in the way specified for the vehicle in the part.

6 Calculation of tax unit for purposes of regulation

(1)  For this regulation, a tax unit is—

(a)  in the financial year commencing on 1 July 2025—$1, and

(b)  in each later financial year—the amount calculated as follows—

 
where—

A is the sum of the CPI numbers for the March, June, September and December quarters in the calendar year preceding the financial year for which the amount is calculated.

B is the sum of the CPI numbers for the March, June, September and December quarters immediately before 1 January 2025.

(2)  The amount of a tax unit must be rounded to the nearest cent, and an amount of 0.5 cent must be rounded down.

(3)  If the amount of a tax unit calculated for a financial year is less than the amount that applied for the previous financial year, the amount for the previous financial year applies instead.

(4)  As soon as practicable after the Australian Bureau of Statistics publishes the CPI number for the December quarter, Transport for NSW must—

(a)  notify the Parliamentary Counsel of the amount of the tax unit for the next financial year to allow notice of the amount to be published on the NSW legislation website, and

(b)  publish, on an appropriate NSW Government website, the taxes applying in each financial year under this section.

(5)  A failure to comply with subsection (4) does not affect the operation of this section.

(6)  In this section—

CPI number means the Consumer Price Index (All Groups Index) for Sydney published by the Australian Bureau of Statistics in the latest published series of the index.

Division 2 Refunds and exemptions

7 Refund for surrender of registration—the Act, s 13(b)

(1)  The refund of motor vehicle tax must be calculated to reflect the unexpired days of the registration period as a proportion of the registration period.

(2)  Only whole unexpired days may be counted for subsection (1).

(3)  The relevant date for counting the unexpired days is—

(a)  if the cancellation occurred because the motor vehicle was damaged in an incident or stolen—the date on which the vehicle was damaged or stolen, or

(b)  otherwise—the date on which Transport for NSW cancels the registration.

(4)  The amount calculated under subsection (1) must be reduced to pay unpaid fees in relation to the motor vehicle payable under the Road Transport Act 2013, including fees—

(a)  under a regulation made under that Act, or

(b)  for the cancellation of the registration.

(5)  The amount of a refund calculated under this section must be rounded down to the nearest dollar.

8 Vehicles exempt from tax—the Act, ss 16(3) and 23(2)(a)

(1)  Motor vehicle tax is not payable in relation to the following—

(a)  a conditionally registered vehicle,

(b)  a caravan weighing 250kg or less,

(c)  a very light trailer—

(i)  weighing 250kg or less, and

(ii)  used substantially for private purposes,

(d)  a vehicle used solely for or in connection with providing a service for conveying—

(i)  sick or injured persons, or

(ii)  persons with a disability, or

(iii)  persons with mobility problems,

(e)  a motor vehicle, other than a government-owned motor vehicle, that is—

(i)  not for let or hire, and

(ii)  used solely for or in connection with road construction, road maintenance or road repair,

(f)  a motor vehicle owned by—

(i)  an Aboriginal Land Council, or

(ii)  a cemetery operator, or

(iii)  a park trust, or

(iv)  a consulate or trade mission representing a country other than Australia or an overseas territory, or

(v)  an employee of a consulate or trade mission referred to in subparagraph (iv).

(2)  In this section—

Aboriginal Land Councilhas the same meaning as in the Aboriginal Land Rights Act 1983.

cemetery operator has the same meaning as in the Cemeteries and Crematoria Act 2013.

disability has the same meaning as in the Disability Inclusion Act 2014.

park trust means a trust responsible for the care, control and management of a park or reserve.

Part 3 Miscellaneous

9 Repeal and savings

(1)  The Motor Vehicles Taxation Regulation 2016 is repealed.

(2)  An act, matter or thing that, immediately before the repeal of the Motor Vehicles Taxation Regulation 2016, had effect under that regulation continues to have effect under this regulation.

Schedule 1 Motor vehicle tax

section 5

Part 1 Tax payable—vehicles 2,500kg or less

Vehicle type	Vehicle characteristics	Vehicle weight		Tax units
		Exceeding kg	Not exceeding kg
Bus, motor car, motor lorry, station wagon, tractor or trailer	(a)  used substantially for private purposes, and (b)  a lower taxed motor vehicle	0	970	270
		970	1,150	305
		1,150	1,500	351
		1,500	2,500	534
Bus, motor car, motor lorry, plant, station wagon or tractor	(a)  used substantially for private purposes and not a lower taxed vehicle, or (b)  for plant—not self-propelled	0	970	270
		970	1,150	313
		1,150	1,500	380
		1,500	2,500	579
Bus, motor car, motor lorry, station wagon, tractor or trailer	(a)  not used substantially for private purposes, and (b)  a lower taxed motor vehicle	0	970	436
		970	1,150	487
		1,150	1,500	568
		1,500	2,500	852
Bus, motor car, motor lorry, plant, station wagon or tractor	(a)  not used substantially for private purposes and not a lower taxed vehicle, or (b)  for plant—self-propelled	0	970	436
		970	1,150	495
		1,150	1,500	597
		1,500	2,500	897
Motor cycle	—	N/A	N/A	84

Part 2 Tax payable—vehicles more than 2,500kg

Vehicle type	Vehicle characteristics	Vehicle weight		Tax units
		Exceeding kg	Not exceeding kg
Bus, motor car, station wagon or trailer	Used substantially for private purposes	2,500	2,790	835
		2,790	3,050	949
		3,050	3,300	1,039
		3,300	3,560	1,130
		3,560	3,810	1,213
		3,810	4,060	1,304
		4,060	4,320	1,392
		4,320	4,500	1,481
Bus	Not used substantially for private purposes	2,500	2,790	835
		2,790	3,050	949
		3,050	3,300	1,039
		3,300	3,560	1,130
		3,560	3,810	1,213
		3,810	4,060	1,304
		4,060	4,320	1,392
		4,320	4,500	1,481
Motor car or station wagon	Not used substantially for private purposes	2,500	2,790	1,392
		2,790	3,050	1,582
		3,050	3,300	1,732
		3,300	3,560	1,884
		3,560	3,810	2,022
		3,810	4,060	2,174
		4,060	4,320	2,320
		4,320	4,500	2,468
Motor lorry	—	2,500	4,500	852
Plant	Self-propelled	2,500	2,790	1,451
		2,790	3,050	1,648
		3,050	3,300	1,805
		3,300	3,560	1,963
		3,560	3,810	2,107
		3,810	4,060	2,267
		4,060	4,320	2,417
		4,320	4,500	2,571
Plant or trailer	(a)  for a trailer—not used substantially for private purposes, or (b)  for plant—not self-propelled	2,500	2,790	1,392
		2,790	3,050	1,582
		3,050	3,300	1,732
		3,300	3,560	1,884
		3,560	3,810	2,022
		3,810	4,060	2,174
		4,060	4,320	2,320
		4,320	4,500	2,468
Tractor	—	2,500	2,790	1,451
		2,790	4,500	1,489

Part 3 Reductions in tax payable for tax concession vehicles

Vehicle type	Tax payable
Caravan	(a)  for a vehicle weighing more than 250kg but not more 760kg—55% of the tax otherwise payable under this regulation for the vehicle (b)  for a vehicle weighing more than 760kg—60% of the tax otherwise payable under this regulation for the vehicle
Local Land Services vehicle	55% of the tax otherwise payable under this regulation for the vehicle
Mobile library	The rate for a vehicle of the same kind used substantially for private purposes
PCYC vehicle	55% of the rate for a vehicle of the same kind used substantially for private purposes
Plant	12% of tax otherwise payable under this regulation for the vehicle
Primary producer’s vehicle	(a)  for a motor car or station wagon—the rate for a vehicle of the same kind used substantially for private purposes, or (b)  for a motor lorry, tractor or trailer that is not plant—55% of the tax otherwise payable under this regulation for the vehicle
School student driver education vehicle	55% of the rate for a vehicle of the same kind used substantially for private purposes
Tow truck	(a)  for an urban tow truck—55% of the tax otherwise payable under this regulation for the vehicle, or (b)  otherwise—30% of the tax otherwise payable under this regulation for the vehicle
Very light trailer	(a)  for a vehicle weighing 250kg or less—30% of the tax otherwise payable under this regulation for the vehicle (b)  for a vehicle weighing more than 250kg but not more than 760kg—55% of the tax otherwise payable under this regulation for the vehicle