Motor Vehicles Taxation Regulation 2025

What’s this about?

The Motor Vehicles Taxation Act 1988 authorises and enables Transport for NSW to determine and collect motor vehicle tax for most registered light vehicles (up to 4.5 tonnes Gross Vehicle Mass).

The tax is hypothecated to the Roads Program via the Transport for NSW Fund. About 7.1 million registered light vehicles in the NSW fleet generate about $2.68 billion in tax each year.

The Motor Vehicles Taxation Regulation 2016 (the existing regulation) supports the Act and contains provisions for:

• the tax refund on surrender of registration will be calculated on days used
• a tax exemption, or a 50% tax reduction, for private vehicles using toll roads
• a 40% tax reduction for privately used caravans
• specifying how to determine the unladen mass of a vehicle
• a tax based on vehicle type, characteristics and unladen mass
• the tax for tractors capped
• additional tax for certain vehicles over 3,560kg
• increasing the tax each year in line with the Consumer Price Index (CPI).

Transport is proposing to remake the existing regulation subject to several amendments that will:

• provide certainty for the community by formalising 'undocumented' tax concessions
• reduce administration costs for government by simplifying CPI arrangements and streamlining the regulatory framework.

Transport for NSW is seeking public comment on the draft Motor Vehicles Taxation Regulation 2025.

In addition, the attached Regulatory Impact Statement seeks feedback on whether additional changes are required.

Have your say

Have your say by 5pm on 12 March 2025.

You can submit your feedback in 2 ways.

We may publish submissions we receive. If you do not want your submission to be published, please tell us this when you send your comments.