Guide · updated 2026-10-09
Do you pay capital gains tax on a classic car in Australia?
Short answer
Generally no. The ATO treats cars, motorcycles and similar vehicles as exempt from capital gains tax, so a gain on selling your classic usually isn't taxed as a capital gain. The exception is when you're in the business of buying and selling cars. Then profits can be ordinary income, and GST can apply. Get advice for your own situation.
Why it matters
Because the gain usually isn't taxed, a capital loss on a car usually can't be used to reduce other gains either.
When it might be different
- You trade cars regularly, or as a business
- The car is a business asset or is owned by a company or trust
- You restore and sell cars for profit
Keep records anyway
Good records of what you paid and every cost since help with insurance, resale and any tax question. LeMarket tracks your full cost base for free.
Sources
General information only, not legal, tax or financial advice. Rules change; check the official source.
Track your car's real cost and value, free.
Record what you paid and every cost since, then follow the market for your car.
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