Thu 07 Aug 2014
Stamp Duty on Initial Plant Registration:
CCF strongly believes that the payment of Stamp Duty on initial Registration (at the same rate as a passenger vehicle) is an unjustified additional expense for the purchasers of new plant that needs to be registered in order to work on the roads.
When you purchase a new luxury motorcar valued at say $325,000 and register it for the first time, you will pay a State Government Stamp Duty of $13,000 plus other taxes and charges. The primary purpose of this (apart from making you feel good) is to transport a small number of passengers from one place to another, hence it is hardly a “Tool of Trade”.
However, when you purchase an item of construction plant, let’s say a Motor Grader which is a “tool of trade” to the same value, you will be required to pay the same $13,000 in Stamp Duty, yet you can effectively only use it in a construction environment, hardly the same purpose as the luxury car.
CCF has raised the matter with Hon Michael O’Brian (Victorian Treasurer), the Minister for Small Business Hon. Russell Northe and Liberal candidate for Rippon Ms Louise Staley in attempts to sway the Department of Treasury and Finance to a more contractor friendly model of Plant registration.
If a recent meeting between the Board of CCF Victoria and Minister Northe is anything to go by, we are starting to get some traction and understanding of the inequity of this tax at ministerial level.
The matter is also being raised with Treasury and Finance by John Lloyd, Victoria’s Red Tape Commissioner.
For more information, please contact CCF Victoria on (03) 9822 0900.