Show download pdf controls
  • History of issue 8 – Motor vehicles issues register

    Attention

    Issue 8 was updated on 1 July 2009. This view was current to 30 June 2009.

    End of attention
    Further Information

    Return to the Motor Vehicle Industry Partnership - Issues Register.

    End of further information

    Issue 8 - Luxury cars

    8.a What vehicles are subject to luxury car tax?

    Cars with a GST-inclusive value (the luxury car tax value) above the luxury car tax threshold ($57,180 for the 2008-09 financial year) are subject to luxury car tax.

    (See question "What vehicles are not subject to luxury car tax")

    8.b What is a car for luxury car tax purposes?

    The term "car" for luxury car tax purposes includes vehicles (other than motor cycles) designed to carry a load of less than two tonnes and fewer than nine passengers including station wagons and four-wheel-drive vehicles. It also includes limousines regardless of their passenger carrying capacity.

    8.c What vehicles are not subject to luxury car tax?

    Luxury car tax does not apply to a vehicle above the luxury car tax threshold if:

    • It was sold by retail in Australia before 1 July 2000
    • It was imported into Australia before 1 July 2000 and nobody was entitled to quote for sales tax purposes
    • There was an application to own use (AOU) of the vehicle before 1 July 2000 for sales tax purposes, and a special credit under section 16 of the GST Transition Act does not apply
    • The date of the supply of the car is more than 2 years after the date of the car's local manufacture or date of entry for home consumption
    • It is a prescribed emergency vehicle
    • It is not GST-free and is specially fitted out for transporting people with a disability seated in wheelchairs
    • It is a motor home or campervan
    • It is a commercial vehicle that is not designed for the principal purpose of carrying passengers

    Luxury car tax does not apply to the private sale of a luxury car.

    8.d How does luxury car tax apply to the fitting of parts, attachments and accessories to luxury cars?

    The luxury car tax value of a car includes the price of all supplies in relation to the car that are made to, or are paid for by, the recipient of the car, or an associate of the recipient and that are made before or arranged with the supplier or their associate before the vehicle is delivered.

    8.e For luxury car tax purposes, what is the date of importation for a car?

    The relevant date of importation of a luxury car is the date the car is entered for home consumption. Therefore a vehicle supplied two years after the date of entry for home consumption will not be subject to luxury car tax.

    8.f When is luxury car tax payable?

    Luxury car tax is payable on all taxable supplies or taxable importations of luxury cars unless the recipient of the car provides a quote, in the prescribed form, to the supplier or to Customs. The quotation system is designed to prevent luxury car tax becoming payable before the car is sold or imported at the retail level.

    8.g Who is entitled to quote?

    Registered entities will be entitled to quote their ABN in relation to the supply or importation of a luxury car where they have the intention of using the car for one of the following purposes, and for no other purpose:

    • holding the car as trading stock, other than holding the car for hire or lease, or
    • carrying out research and development for the manufacturer of the car, or
    • exporting the car in circumstances where the export is GST-free.

    8.h Is there an input tax credit for luxury car tax?

    No. Unlike the GST, no input tax credit is available for LCT, regardless of whether the luxury car is used within a business or for private purposes.

    For more information on Luxury Car Tax refer to A Guide to Luxury Car Tax .

      Last modified: 27 Jun 2012QC 22003