Do any of you know how the "Market Value" of a car is arrived at for a private sale for stamp duty purposes in WA?

I'm looking at a MY2000 that is advertised for $39500. At that price, I'd have to pay another $2500 in stamp duty. At $30000, I'd pay $1500.

What is to stop me from paying $30000 for the car and $9500 for the mats?

 

At the transport place in SA , i read a sign that had something like you have to pay Stamp duty based on the highest value of your 'Paid price' or 'market value' of the car. OR else you get a fine.

 

Ples is right- you are legally obliged to pay duty on either 'market value' or the price paid, whichever is higher.

What is stopping you from paying $30,000 for a car, and $9500 for mats? Nothing. HOWEVER: If the two purchases comprise of 'tied' contracts (i.e. contracts which are each dependent on the other completing) then legally they would be treated as one contract for duty purposes; ergo your purchase price is actually $39500. Next question: How would the transport office know about your separate contracts? Well, they wouldn't, except if the price that you put on your declaration form is too far below market. There is a cutoff price for every single car on the market; if the figure you put on your form is below it, they will investigate and you could get nailed.

Short answer, if you want to limit your duty and aren't afraid of breaking the law: trim the amount you declare, but don't trim it too far, lest you'll be busted.

 

Also you can't assume that the cute blonde behind the counter knows sfa about cars because they deal with that stuff for a living and they will catch you out.