Guide to correcting mistakes and disputing decisions

Luxury car and wine equalisation taxes

To correct a BAS mistake relating to luxury car tax (LCT) or wine equalisation tax (WET) you need to lodge a revised activity statement .

You can make an adjustment to LCT on your current activity statement.

Mistakes

A mistake occurs if the amount you reported on your activity statement was not correct at the time you lodged your activity statement.

Adjustments

The need for an adjustment does not arise with WET. With LCT it arises when the tax amount was correct at the time you reported it but has increased or decreased since.

An increasing adjustment can arise if any of the following occur:

there has been an increase in the price of the car
you quoted your ABN when you purchased or imported the car but used it for a non-quotable purpose
you've recovered a bad debt in relation to a luxury car
you previously had a 'decreasing adjustment' and now use the luxury car for a non-quotable purpose.

A decreasing adjustment can arise if any of the following occur:

there is a decrease in the price of the car
you have written off a bad debt in relation to a luxury car or a debt has been overdue for 12 months or more
you did not quote your ABN at the time of the purchase or import and either of the following applies

you intend to use the vehicle for a quotable purpose
you have used the vehicle for a quotable purpose only

the sale is cancelled.

For information on making an LCT adjustment on your current BAS, refer to Completing the LCT labels in the Guide to activity statements.

Sections within Correct an instalment or business activity statement

Last Modified: Tuesday, 3 July 2012