Most private car sales in Australia are GST-free — but there are exceptions. This guide explains when GST applies and what it means for sellers.
If you're selling your personal vehicle as a private individual, the sale is not subject to GST. GST applies only to businesses registered for GST — and a private individual selling their own car is not making a taxable supply.
The buyer pays no additional 10% on top of the agreed price, and the seller has no GST obligation to the ATO. The sale price is simply the sale price.
GST becomes relevant in two scenarios:
1. Selling through a business. If you're selling a vehicle used for business purposes and your ABN is registered for GST, the sale may be a taxable supply.
2. Buying from a dealer. Licensed dealers are registered for GST. When a dealer sells a vehicle to a private buyer, GST is embedded in the price — the advertised price is GST-inclusive.
For most private sellers selling personal vehicles, GST simply does not apply.
No. Private sales between individuals are not subject to GST. Your receipt should show the agreed sale price with no GST component.
No. As a private individual selling your personal vehicle, your GST obligation is nil regardless of who you sell to.
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