Do I need a roadworthy certificate to sell a car in Australia?

The requirement for a roadworthy certificate (RWC) or safety certificate when selling a used motor vehicle varies by state and territory. In Victoria, a seller must provide a current RWC before a used vehicle can be registered in the buyer’s name, unless the vehicle is sold as unregistered. In Queensland, a safety certificate (previously called a roadworthy certificate) is required before a used registered vehicle can be transferred to a new owner. In New South Wales, a pink slip (e-Safety Check) is generally required on an annual basis for vehicles over five years old as part of the registration renewal process, but is not a specific requirement for private sale transfers, although the vehicle must be in a roadworthy condition. In Western Australia, South Australia, and other states and territories, the requirements differ. Sellers should check the specific requirements of the road authority in their state or territory before completing the sale.

How much stamp duty will I pay when buying a car in Australia?

Stamp duty (also called motor vehicle duty or transfer duty) on the purchase of a motor vehicle is assessed by the relevant state or territory road authority and is paid by the buyer at the time of registration transfer. The amount of stamp duty payable varies significantly between states and territories and depends on the dutiable value of the vehicle (which is generally the purchase price or the market value, whichever is higher) and in some states the type of vehicle or its emissions rating. For example, in New South Wales, the duty rate for private-sale vehicles is calculated on a sliding scale. In Victoria, motor vehicle duty is charged at a set rate per dollar of market value. Queensland, Western Australia, and South Australia have their own rate structures. Buyers should check the stamp duty calculator available on their state or territory road authority’s website before completing the purchase.

What is the PPSR and why is a search important when buying a used car in Australia?

The Personal Property Securities Register (PPSR) is a national online register maintained under the Personal Property Securities Act 2009 (Cth) that records security interests in personal property, including motor vehicles. If a car has been purchased using finance (such as a car loan or dealer finance), the financier will typically register a security interest on the PPSR against the vehicle’s VIN. If the seller has not paid off the car loan and you buy the vehicle without checking the PPSR, you may take the vehicle subject to the existing security interest — meaning the lender could repossess the car even after you have paid for it. A PPSR search at ppsr.gov.au costs a small fee and allows you to search by the vehicle’s VIN to check for registered encumbrances. You can also use the PPSR to check whether the vehicle has been reported as stolen or written off. Always conduct a PPSR search before buying a second-hand car.

Does GST apply to private car sales in Australia?

Private sales of motor vehicles between individuals who are not registered for GST are generally not subject to GST. If you are a private seller selling your personally owned vehicle and you are not a licensed motor vehicle dealer and not registered for GST, the sale is not a taxable supply under the A New Tax System (Goods and Services Tax) Act 1999 (Cth) and no GST is payable. However, if the seller is a licensed motor vehicle dealer or a business that is GST-registered and selling the vehicle in the course of its enterprise, the sale is typically a taxable supply and GST of 10% applies. In that case, the seller must issue a tax invoice and the buyer (if also GST-registered and using the vehicle in its business) may be entitled to claim an input tax credit. The Bill of Sale should clearly identify whether the sale is a private sale not subject to GST or a taxable supply with GST inclusive or exclusive pricing.

What are my rights as a buyer if a used car has undisclosed defects under Australian Consumer Law?

The Australian Consumer Law (ACL), which is Schedule 2 to the Competition and Consumer Act 2010 (Cth), provides important protections for consumers who purchase goods in trade or commerce. If you buy a used car from a licensed motor vehicle dealer or a business, the ACL’s consumer guarantees apply. These include guarantees that the vehicle will be of acceptable quality (safe, durable, free from defects, acceptable in appearance and finish, and fit for all purposes for which vehicles of that kind are commonly supplied), that it will match any description given, and that it will be fit for any disclosed purpose. If the vehicle fails to meet a consumer guarantee, you may be entitled to a repair, replacement, or refund depending on the severity of the failure. Private sales between individuals are not subject to the ACL’s consumer guarantees, although the seller must not engage in misleading or deceptive conduct or make false representations about the vehicle.

Bill of Sale — Motor Vehicle / Car (Australia) — Australia

Create an Australian Bill of Sale for the private or commercial sale of a motor vehicle, car, ute, SUV, van, or truck. Covers VIN and engine number identification, PPSR (Personal Property Securities Register) search and encumbrance disclosure, stamp duty obligations on registration transfer, roadworthy or safety certificate details, GST treatment for dealer and private sales, and Australian Consumer Law statutory guarantees. Suitable for all Australian states and territories including NSW (Service NSW / RMS), Victoria (VicRoads), Queensland (TMR), Western Australia (DoT), South Australia (Service SA), Tasmania (DPIPWE), ACT, and NT.

What Is a Bill of Sale — Motor Vehicle / Car (Australia)?

An Australian Motor Vehicle Bill of Sale is a written legal document that records the sale and transfer of ownership of a car, ute, SUV, van, truck, or other motor vehicle from a Seller to a Buyer. It captures all essential identifying details of the vehicle — including the make, model, year of manufacture, colour, body type, Vehicle Identification Number (VIN), engine number, registration plate, and odometer reading — together with the purchase price, GST treatment, payment method, and the moment at which title and risk of loss pass from the Seller to the Buyer.

Motor vehicle sales in Australia are regulated at both the Commonwealth and state or territory levels. Each state and territory has its own motor vehicle registry (Service NSW / Roads and Maritime Services in NSW; VicRoads in Victoria; Transport and Main Roads in Queensland; the Department of Transport in Western Australia; Service SA in South Australia; the Department of State Growth in Tasmania; Access Canberra in the ACT; and the NT Department of Infrastructure, Planning and Logistics). The relevant road authority assesses stamp duty (motor vehicle duty) on the transfer of registration, based on the purchase price or market value of the vehicle.

At the Commonwealth level, the key legislative instruments governing motor vehicle sales include the Australian Consumer Law (ACL), which is Schedule 2 to the Competition and Consumer Act 2010 (Cth) and which applies mandatory statutory guarantees to sales made in trade or commerce; the Personal Property Securities Act 2009 (Cth) (PPSA), which governs security interests in motor vehicles and the operation of the Personal Property Securities Register (PPSR); and the A New Tax System (Goods and Services Tax) Act 1999 (Cth), which determines whether and how GST of 10% applies to the sale.

A well-prepared Bill of Sale protects both buyer and seller. It provides the buyer with a clear record of the agreed terms, the vehicle’s identifying details, and the seller’s warranties. It provides the seller with evidence of the transfer of title and risk, which is important to avoid liability for traffic infringements or accidents that occur after the sale.

When Do You Need a Bill of Sale — Motor Vehicle / Car (Australia)?

An Australian Motor Vehicle Bill of Sale is needed whenever a car, ute, SUV, van, truck, or other motor vehicle changes hands and the parties want a written record of the transaction and the transfer of ownership. There are many situations in which a Bill of Sale is important:

Private vehicle sales. When an individual sells their personally owned car or other vehicle to another private buyer, a Bill of Sale provides documentary evidence of the sale, the agreed price, the vehicle’s condition, and the transfer of ownership.

Dealer sales. When a licensed motor vehicle dealer sells a used or new vehicle to a consumer, a Bill of Sale records the agreed terms, the GST treatment, and provides the foundation for the tax invoice the dealer must issue.

Commercial fleet vehicle sales. When a business sells vehicles from its fleet (for example, cars, utes, or vans no longer required), a Bill of Sale documents the transfer of title and the GST treatment.

Finance payout sales. When a seller has a car loan outstanding on the vehicle, the Bill of Sale should record the arrangement for discharging the finance and releasing the PPSR security interest before or simultaneously with the transfer of title.

Vehicles with defects or not roadworthy. When a vehicle is sold in its current condition without a roadworthy certificate (where permitted by state law), the Bill of Sale should clearly record this so that both parties understand the vehicle’s status.

Out-of-state transfers. When a vehicle registered in one state or territory is sold to a buyer who will re-register it in another state or territory, the Bill of Sale provides the essential documentation for the re-registration process.

What to Include in Your Bill of Sale — Motor Vehicle / Car (Australia)

A well-drafted Australian Motor Vehicle Bill of Sale should include the following key elements to be legally effective and protect both parties:

Vehicle identification. The vehicle must be described with precision: make, model, year of manufacture, colour, body type, VIN (17 characters), engine number, registration plate number, state of registration, registration expiry date, and the odometer reading at the date of sale.

Party details. Both the seller and buyer must be fully identified, including their full legal names and addresses. The buyer’s driver licence number is useful for identification purposes. If the seller is a business, their ABN or ACN and any motor vehicle dealer licence number should be included.

Purchase price and GST treatment. The purchase price must be stated in Australian Dollars (AUD) and the GST treatment must be specified: GST inclusive (for dealer sales), GST exclusive (for commercial sales where the price is quoted net of GST), or not subject to GST (for private sales between non-GST-registered individuals).

Stamp duty acknowledgement. The Bill of Sale should note that stamp duty (motor vehicle duty) on the transfer of registration is the buyer’s responsibility and is assessed by the relevant state or territory road authority.

PPSR search. The Bill of Sale should confirm whether a PPSR search was conducted before the sale and include the seller’s warranty that the vehicle is free from registered security interests.

Roadworthy / safety certificate. If a roadworthy or safety certificate has been provided, the certificate details should be recorded. If the vehicle is being sold without one (where permitted), this should be explicitly stated.

Transfer of title and risk. The Bill of Sale should specify when title and risk pass to the buyer and who is responsible for the costs of registration transfer, stamp duty, and any other associated fees.

Frequently Asked Questions

Related Documents

You may also find these documents useful:

Bill of Sale (Australia)

Create an Australian Bill of Sale for the private or commercial sale of goods. Covers description of goods, purchase price, GST (10%), condition, express warranty or as-is, transfer of title and risk, retention of title, PPSA security interest and PPSR registration, and Australian Consumer Law compliance. Suitable for vehicles, equipment, business assets, and personal property.

Bill of Sale — Motorcycle (Australia)

Create an Australian Motorcycle Bill of Sale recording the private or dealer sale of a motorcycle or scooter. Covers VIN, engine number, odometer reading, LAMS approval status, PPSR search confirmation, registration transfer, GST treatment, seller's warranties, and transfer of title under Australian Consumer Law. Suitable for all states and territories.

Bill of Sale — Boat / Watercraft (Australia)

Create an Australian Bill of Sale for the private or commercial sale of a boat, vessel, or watercraft. Covers Hull Identification Number (HIN), vessel registration transfer, engine details, optional trailer, marine survey, GST (10%), PPSA security interest and PPSR registration, maritime liens, and Australian Consumer Law compliance. Suitable for powerboats, sailing vessels, personal watercraft, tinnies, and houseboats.

Bill of Sale — Trailer (Australia)

Create an Australian Bill of Sale for the sale of a trailer. Covers VIN/chassis number, GVM, towing specifications, registration status and transfer, purchase price in AUD, GST (10%), PPSA retention of title, PPSR registration, and Australian Consumer Law compliance. Suitable for box trailers, flatbed trailers, boat trailers, horse floats, and heavy vehicle trailers.

Vehicle Sale Agreement (Australia)

A Vehicle Sale Agreement (also known as a Motor Vehicle Bill of Sale) is a written contract that records the private or dealer sale of a motor vehicle between a Seller and a Buyer in Australia. It documents the agreed purchase price, vehicle identification details, odometer reading, known defects, payment terms, and the transfer of ownership. While a written agreement is not legally required to complete a private vehicle sale in Australia, it is strongly recommended as evidence of the terms agreed and as protection for both parties against subsequent disputes. Motor vehicle sales in Australia are governed by a combination of Commonwealth and state or territory legislation. The most important Commonwealth frameworks are the Australian Consumer Law (ACL) — Schedule 2 of the Competition and Consumer Act 2010 (Cth) — and the Personal Property Securities Act 2009 (Cth) (PPSA), which established the Personal Property Securities Register (PPSR). State and territory roads authorities impose separate requirements for the transfer of vehicle registration and the payment of stamp duty. The Personal Property Securities Register (PPSR) is one of the most important considerations in any Australian vehicle sale. Under the PPSA, a financier or other secured party can register a security interest over a motor vehicle. If a buyer purchases a vehicle without first conducting a PPSR search at ppsr.gov.au, they may take the vehicle subject to that registered interest — meaning the financier could repossess the vehicle even after the sale. The PPSR search costs only a few dollars and takes minutes, but protects buyers from unknowingly acquiring an encumbered vehicle. Sellers should also confirm that any finance secured against the vehicle is discharged before settlement. Stamp duty (also known as motor vehicle duty in some states) is a state tax payable by the buyer on the transfer of vehicle registration. Rates vary by state and are typically calculated on the dutiable value of the vehicle (the greater of the purchase price and the market value). For example, in NSW the duty is $3 per $100 for vehicles under $45,000 and higher rates apply above that threshold. In Victoria, the duty rate depends on the dutiable value and vehicle type. Buyers are responsible for paying stamp duty to the relevant State Revenue Office when they transfer the registration. For private sales between individuals, GST generally does not apply to the purchase price, as private sellers are not registered for GST and the sale does not occur in the course of an enterprise. For dealer sales, GST at 10% is typically included in the advertised price, and the dealer must issue a valid tax invoice. The agreement should note the GST position clearly. Under the Australian Consumer Law, consumer guarantees apply to the sale of goods by dealers (businesses) to consumers, including vehicles. These guarantees — that the vehicle is of acceptable quality, fit for disclosed purpose, matches its description, and that the seller has clear title — cannot be excluded. The ACL consumer guarantees do not apply to purely private sales between individuals, though the general prohibitions on misleading conduct (ACL s 18) apply to all sales. A private seller who misrepresents the vehicle's condition, odometer reading, or PPSR status may face claims under the ACL and common law. The odometer reading is a critical record in any vehicle sale. Australian state consumer protection agencies treat odometer tampering as a serious offence. The Vehicle Sale Agreement should include an express odometer disclosure by the Seller, certifying the reading at the time of sale is accurate and that the odometer has not been tampered with. Vehicle registration transfer requirements vary by state. After completion of the sale, the buyer must transfer the registration into their name within the prescribed period (which varies — for example, 14 days in NSW, 14 days in VIC). Late transfers may incur penalties. The seller should notify their state roads authority of the sale promptly to avoid ongoing liability for fines or tolls incurred after the vehicle is transferred. A Vehicle Sale Agreement is relevant for any private car, ute, SUV, wagon, motorbike, caravan, or trailer sale in Australia, regardless of the vehicle's age or value.