On-Road Costs in Australia: Drive-Away vs List Price Explained
Article Summary
A car's advertised list price and its drive-away price can differ because registration, compulsory injury insurance, motor vehicle duty and dealer charges may still need to be added. In Australia there is no single fixed amount for on-road costs: what you pay can change with your state or territory, vehicle value, vehicle type and sometimes emissions or powertrain.
The safest way to compare cars is to compare written drive-away quotes for the exact same vehicle, location and registration period, rather than comparing a list price with somebody else's drive-away deal.
What is the difference between list price and drive-away price?
List price is the price of the vehicle before some costs required to put it on the road.
On-road costs are the additional charges associated with buying, registering and putting that particular vehicle on the road.
Drive-away price is the amount you pay under the stated conditions to buy the vehicle and have it ready to legally drive away.
That distinction sounds simple, but Australian car advertising uses several different pricing bases, which is why two apparently similar prices may not actually be comparable.
Price term | What it generally means |
|---|---|
Manufacturer/list price | Vehicle price, generally including GST and applicable Luxury Car Tax, but commonly excluding registration, motor vehicle duty and other on-road charges |
Before on-road costs | The stated vehicle price with on-road charges still to be added |
Drive-away price | Price incorporating the mandatory, quantifiable charges needed for the advertised vehicle to be supplied and registered under the stated conditions |
Dealer advertised price | A price offered by an individual dealer; may be a drive-away figure or another clearly identified pricing basis |
Promotional drive-away price | Time-, stock-, model- or eligibility-limited manufacturer/dealer campaign |
Finance offer | A separate finance arrangement that can include interest, fees, deposits, balloon payments or eligibility conditions |
When browsing AussieMotor's Australian new-car listings, always check the pricing basis shown for the specific model or variant rather than assuming every advertised number is drive-away.
What are on-road costs?
For a typical new car, on-road costs can involve several components:
Motor vehicle duty or stamp duty. This is a state or territory charge, with the calculation differing around Australia.
Registration and number-plate charges. These are required before the vehicle can legally be used on public roads.
Compulsory injury insurance. Depending on the jurisdiction this may be called CTP, a TAC charge or another motor injury insurance arrangement, and the way it is collected varies between states.
Dealer delivery. This is a dealer charge associated with preparing and supplying a new vehicle. Under ACCC component-pricing guidance, dealer delivery as imposed by the motor vehicle industry is considered a component of the vehicle's single price when it is quantifiable.
Other charges can arise depending on the transaction, vehicle and options.
There is therefore no reliable national rule that says, for example, "just add $4,000" to every manufacturer's list price.
What exactly does drive-away mean?
For a dealership advertisement where all mandatory components can be quantified, Australian Consumer Law pricing rules require the business to display a single total price that includes unavoidable taxes, duties and fees.
The ACCC's motor-vehicle guidance says the total can typically include the vehicle purchase price, stamp duty, compulsory third-party insurance, registration and dealer delivery. The total price must be displayed at least as prominently as any component price.
So if a vehicle is genuinely advertised at $39,990 drive-away, that figure should represent the minimum total amount required to obtain that advertised vehicle under the stated conditions.
But the words drive-away do not automatically mean the same offer applies everywhere in Australia.
A drive-away figure may be calculated for a specific:
state or territory;
postcode;
private or business buyer;
registration period;
model and variant;
paint colour or option specification;
stock pool;
order or delivery deadline; or
promotional campaign.
Always read the conditions attached to the price.
Why do on-road costs vary between Australian states?
Vehicle duty is not a single federal charge. Each state and territory applies its own rules.
That means two buyers purchasing the exact same model at the exact same list price can end up with different drive-away totals.
Here is the broad picture as of September 2026:
State/territory | How vehicle duty can differ |
|---|---|
NSW | Primarily vehicle value, with a higher passenger-vehicle rate above $45,000 |
Victoria | Vehicle value and category matter; passenger-car rates interact with value thresholds and there are separate provisions for green passenger cars |
Queensland | Vehicle value plus engine/fuel type; hybrids and EVs have a different rate structure from combustion vehicles |
South Australia | Different calculations apply to commercial and non-commercial vehicles |
Western Australia | Vehicle licence duty applies when a vehicle is licensed or transferred |
ACT | New passenger/light-commercial duty varies by value and tailpipe CO₂ category |
Northern Territory | Vehicle duty forms part of the territory's registration/purchase cost structure |
Tasmania | Duty varies according to vehicle type, circumstances and dutiable value |
NSW currently charges passenger-vehicle duty at $3 per $100 up to $44,999 and applies a higher calculation once the vehicle reaches $45,000. Victoria's current 2026–27 drive-away guidance says duty depends on the vehicle's dutiable value, and licensed motor-car traders must incorporate the relevant 2026–27 government amounts when constructing a drive-away deal.
Queensland's duty schedule also demonstrates why vehicle type matters: a light hybrid or EV worth up to $100,000 is charged at $2 per $100, while a one- to four-cylinder combustion vehicle in the same value band is charged at $3 per $100.
In the ACT, the current schedule through 31 January 2027 takes both vehicle value and certified tailpipe CO₂ emissions into account. South Australia separates commercial and non-commercial vehicle calculations, while Western Australia directs buyers to its vehicle duty calculator and also applies a vehicle transfer fee to transfers.
This is why a precise drive-away price normally requires at least the exact vehicle and the buyer's registration location.
A real example: $50,000 car in NSW
The NSW Government provides a useful illustration.
For a vehicle with a market value of $50,000, its example calculates motor vehicle duty at:
Component | NSW example |
|---|---|
Duty on first $44,999 | $1,350 |
Duty on remaining $5,001 | $250 |
Total motor vehicle duty | $1,600 |
That $1,600 is only the motor vehicle duty, not the complete amount of on-road costs. Registration, CTP and any applicable dealer charges still need to be accounted for when working out the final transaction price. This example shows why multiplying a list price by a generic national percentage can give the wrong answer.
Does list price include GST?
For normal dealer advertising, taxes and unavoidable charges that can be quantified are subject to the ACCC's total-price rules. When manufacturers refer to a recommended retail or list price before on-road costs, GST is generally already included in the vehicle price rather than being added later as another on-road charge.
The important thing is to read the manufacturer's stated pricing basis. "Before on-road costs" should not be interpreted as "before GST".
Is Luxury Car Tax an on-road cost?
Luxury Car Tax deserves separate treatment because it is a Commonwealth tax, not a state registration or stamp-duty charge. For the 2026–27 financial year, the general LCT threshold is $80,809, while the fuel-efficient vehicle threshold is $91,661. Since 1 July 2025, the fuel-efficient definition uses a fuel-consumption limit of no more than 3.5L/100km.
The ATO states that the LCT rate is 33 per cent and applies to the relevant amount above the applicable threshold, subject to the rules and exemptions.
For an ordinary retail buyer, LCT is generally reflected in the vehicle's advertised sale price rather than appearing as a surprise state on-road charge after the list price. It should therefore not simply be lumped together with registration, CTP and stamp duty when explaining why one state's drive-away price differs from another's.
What is CTP and is it the same as car insurance?
No. Compulsory Third Party insurance is concerned with personal injury, not repairing cars. Queensland's Motor Accident Insurance Commission explicitly states that CTP does not cover damage to vehicles or other property.
How compulsory injury insurance is arranged differs around Australia. In some jurisdictions it is built into the registration process, while in others buyers have some insurer choice or a separate compulsory insurance step.
A drive-away price can therefore include the compulsory injury-insurance component needed to register the car, but that does not mean you have comprehensive insurance for your new vehicle. For the distinction between CTP, third-party property and comprehensive cover, AussieMotor's Third Party vs Comprehensive Car Insurance guide explains the different types of protection.
Does drive-away include comprehensive insurance?
Normally, no A drive-away price includes the compulsory insurance arrangements necessary to register the car where applicable. Comprehensive insurance is a separate product you arrange to protect your own vehicle and, depending on the policy, cover other insured risks. QBE likewise notes that comprehensive insurance is not included simply because a car is advertised as drive-away. It is sensible to have your chosen cover effective before collecting a newly purchased vehicle.
What is dealer delivery?
Dealer delivery is a dealership charge associated with preparing and supplying a new vehicle. It can cover activities involved in preparing the vehicle for handover, but the amount itself is not a standard government charge. What matters for price comparison is the total amount payable.
ACCC guidance specifically treats dealer delivery as a component of the single vehicle price for component-pricing purposes when it is imposed in the usual way by the industry. So a dealer should not make an apparently cheap advertised figure look more attractive simply by hiding a mandatory dealer-delivery amount until later in the transaction.
National drive-away price vs postcode-specific drive-away price
These two offers should not be treated as identical. A manufacturer can choose to advertise a national drive-away campaign, effectively setting one advertised figure despite underlying registration and duty differences. Other manufacturers and dealers calculate drive-away pricing after asking for your state or postcode. That result is location-specific.
For example, if an online configurator asks you to enter a Melbourne postcode before showing $42,350 drive-away, that does not establish a $42,350 national price. When AussieMotor reports a postcode-specific drive-away price, it should always say where the quote applies.
What about promotional drive-away prices?
A promotional drive-away price is different again.
It may require the buyer to:
order before a specified date;
take delivery before a deadline;
choose a particular variant;
buy from participating dealers;
purchase from existing stock;
be a private buyer rather than a fleet customer; or
satisfy some other campaign condition.
A promotion can also end before the underlying model's normal list price changes. That is why an old list price should never be compared with a new promotional drive-away figure and described as a "price cut" without establishing that both figures use the same pricing basis.
Is a finance offer the same as a drive-away price?
No. A vehicle may have a drive-away purchase price and, separately, a finance offer.
Finance can introduce:
an interest rate;
establishment or account fees;
a deposit;
a balloon or residual payment;
a fixed term;
eligibility requirements; and
a total amount payable over the loan.
The NSW Government advises buyers to check finance agreements for interest rates, fees, balloon payments, repayment terms and the total amount that will ultimately be paid.
A "$199 per week" advertisement therefore tells you something very different from a "$39,990 drive-away" price.
What isn't normally included in the drive-away price?
Even when a vehicle is genuinely advertised drive-away, your broader cost of car ownership does not stop there. Expenses commonly outside the drive-away figure include comprehensive insurance, future registration renewals, servicing, tyres, fuel or charging, finance interest and later repairs.
AussieMotor covers those longer-term expenses separately in our Hidden Costs of Owning a Car in Australia guide and our Cheapest Cars to Run in Australia comparison. Optional paint, accessories or dealer-added products can also raise the final amount if they were not part of the advertised vehicle.
What about used cars?
Used-car pricing has its own on-road considerations. For example, NSW calculates duty on a used vehicle using the sale price or market value, whichever is higher. Transfer fees and duty can also apply in other jurisdictions. Western Australia, for example, currently lists a $20.50 vehicle transfer fee in addition to vehicle licence duty.
This is particularly important when comparing a privately advertised used car with a dealer price, because the figure you see in a classified advertisement may not represent the complete amount required to transfer the vehicle into your name. AussieMotor's New vs Used Car Cost Breakdown covers the wider ownership trade-offs between the two.
How to compare two car prices properly
Imagine Dealer A advertises a vehicle at $44,990 before on-road costs, while Dealer B promotes what looks like the same model at $47,490 drive-away. You cannot conclude Dealer A is $2,500 cheaper.
First confirm that both quotes cover the same:
Check | Why it matters |
|---|---|
Exact model and variant | Different grades can have different list prices |
Model year/build specification | Run-out stock may be priced differently |
Paint and options | Premium paint or accessories can change both vehicle value and total price |
Pricing basis | Before-ORC cannot be compared directly with drive-away |
Registration location | Duty, registration and compulsory insurance vary |
Registration period | A shorter period can make a quote look cheaper |
Buyer type | Fleet, ABN, private and other programs can differ |
Campaign deadline | Promotional pricing may expire |
Finance requirement | A low advertised payment may have finance conditions |
Trade-in | A trade-in allowance can disguise the real purchase price |
Ask both dealers for a written, itemised drive-away quotation for the same specification and your actual registration location. Then compare the amount you would genuinely need to pay to own and register each car.
Can you estimate on-road costs from the list price?
You can make a rough budget, but a generic percentage or fixed-dollar rule is unreliable.
The exact result depends on variables such as:
state or territory;
vehicle value;
passenger versus commercial classification;
powertrain or cylinder count in some jurisdictions;
emissions in the ACT;
registration and compulsory insurance;
dealer delivery; and
selected options.
For a serious buying decision, use the official state or territory duty and registration calculators or obtain a written drive-away quotation.
Why this matters when comparing cars online
A $39,990 list-price vehicle is not automatically cheaper than a rival advertised at $41,990 drive-away. Once stamp duty, registration, compulsory insurance and dealer delivery are incorporated, the first car's actual purchase cost might close the gap or even exceed it.
This is also why AussieMotor should keep pricing bases explicit throughout reviews, comparisons and new-car listings. When one vehicle is quoted before on-road costs and another is a promotional drive-away offer, the figures should be labelled separately rather than placed side-by-side as though they mean the same thing.
Bottom line
For Australian car buyers, the number that matters at purchase time is not simply the manufacturer's headline price. It is the actual amount required to buy and register the exact car in your location. A list or before-on-road-cost price is useful for comparing vehicles on a consistent manufacturer-price basis. A drive-away price is more useful for understanding what you will actually need to pay provided you check where it applies and whether any campaign, buyer, stock or registration conditions are attached.
And because duty and registration rules differ around Australia, there is no universal on-road-cost amount that can safely be added to every car. Get the final drive-away figure in writing, compare like with like, and keep finance, trade-in values and ongoing ownership costs separate from the purchase price.