PARF Before and After the 2026 Change: Rates, Caps and Worked Examples
Compare the adjacent PARF cohorts at the same age and actual ARF, including cases where the monetary cap changes the result.
A valid before-and-after PARF comparison holds age and actual ARF constant while changing the original COE cohort. Comparing a five-year-old older car with a ten-year-old newer-cohort projection mixes two effects.
The two adjacent cohorts
Eligible cars with original COEs from the second February 2023 exercise through the first February 2026 exercise use the older age rates with a $60,000 cap. From the second February 2026 exercise, the new schedule has a $30,000 cap. Earlier eligible cohorts have their own cap treatment.
| Age at deregistration | Pre-change adjacent cohort | New cohort |
|---|---|---|
| Up to 5 years | 75% | 30% |
| Over 5, up to 6 | 70% | 25% |
| Over 6, up to 7 | 65% | 20% |
| Over 7, up to 8 | 60% | 15% |
| Over 8, up to 9 | 55% | 10% |
| Over 9, up to 10 | 50% | 5% |
| Over 10 | Nil | Nil |
Examples within five years
| Actual ARF | Older capped cohort | New cohort | Difference |
|---|---|---|---|
| $20,000 | $15,000 | $6,000 | $9,000 |
| $50,000 | $37,500 | $15,000 | $22,500 |
| $100,000 | $60,000 (cap) | $30,000 | $30,000 |
The percentage-rate reduction is 45 percentage points in each eligible age band. The cash difference is not always 45% of ARF because caps can bind. At $100,000 ARF in the youngest band, the older uncapped calculation would be $75,000, but the adjacent cohort’s $60,000 cap limits it.
A later-age projection
At exactly eight years and hypothetical actual ARF of $40,000, the older adjacent cohort gives $24,000 (60%) and the new cohort $6,000 (15%). This is a future scenario for a car in the new cohort, not the rule for every eight-year-old car currently on sale.
The other disposal components
Unused COE can produce a separate rebate. Body or export value is a commercial amount, with its own costs and conditions. A sale quotation may already include the value of rebates; do not add them twice.
Check the vehicle record and exact date
Use actual ARF after applicable adjustments, the original COE exercise, eligibility and the exact deregistration age. Age-band boundaries are inclusive as shown. A renewal does not restart PARF eligibility, and a used purchase does not reset the original cohort.
Sources and review date
Reviewed on 13 September 2026. Historical results retain their exercise dates; worked budgets are assumptions, not quotations.