The AADA has reviewed the Victorian Government’s 2026-27 State Budget from the perspective of the franchised new car retail sector. This bulletin highlights key measures relevant to motor vehicle dealers, including vehicle taxation and registration settings, government concessions, road infrastructure funding, and broader economic and fiscal trends that may influence consumer confidence and vehicle demand across Victoria.
What the Victorian Treasurer Said
The Victorian Treasurer Jaclyn Symes has advised that this Budget delivers a surplus of $700 million in 2025-26, $1 billion in 2026-27, and increasing to $2 billion by the end of the forward estimates and that net debt as a share of the economy will be lower in four years timer than it is today.
Further, net debt will climb to $175.6 million by the end of the 2026-27 financial year and is forecast to reach a record $199.3 billion by 2028-29, when annual interest will climb to $11.8 billion a year.
Key Points from the 2026-27 Victorian Budget
The Budget has announced an allocation of:
- $750 million to enable a 20 percent car registration rebate for personal motor vehicles. This does not apply to Licensed Motor Car Trader (LMCT) held stock.
- $1.04 billion for state wide road maintenance and repair in the next financial year. This is approximately $60 million more than 2025-26.
- Land taxes are projected to deliver $6.5 billion to the government coffers in 2027.
- Stamp duty will reach $10 billion in 2027, that is down from the $10.6 billion in revenue from 2025-26. This is attributed to lower activity in the property market amid rising interest rates.
Motor Vehicle Related Information
- There has been no rise in the motor vehicle stamp duty thresholds for new motor vehicles. There has been no change in new non-passenger vehicles for 8 years but some variation over the years to the value thresholds on new passenger cars. Realistically, the only variations year‑to‑year are indexation of passenger‑vehicle thresholds.
- The Super Luxury Duty remains.
- A review of the Statement of Finances Budget Paper No. 5 reports that vehicle registration fees are budgeted to raise $2.471 billion in the 2026-27 financial year. The revised figure for 2025-26 is $1.558 billion.
- Motor Vehicle Stamp Duty on vehicle registration and transfer is budgeted to raise $1.398 billion in the 2026-27 financial year. The revised figure for 2025-26 is $1.334 billion.
- Revenue from motor vehicle taxes is forecast to be $3.9 billion in 2026-27 then grow by an average of 6.1 per cent a year over the forward estimates.
- A review of the Service Delivery Budget Paper No. 3 advises of the cessation of motor vehicle duty concession for luxury green passenger cars effective 1 July 2027. Green passenger vehicles above the luxury car threshold will no longer be charged a lower rate of motor vehicle duty than other standard passenger vehicles.
- A review of the 2026-27 Department Performance Statement announces that Consumer Affairs Victoria (CAV) are budgeting for no increase in the amount of court and administrative actions taken in relation to consumer laws and have an expected rate of compliance with key consumer laws of 95 per cent.