Who needs to pay LCT and who can defer paying it?
You need to pay luxury car tax (LCT) on all cars above the LCT threshold that you sell or import.
In some circumstances you can quote your ABN when you purchase or import a luxury car so that the LCT is deferred until you on-sell the car or stop using it for a quotable purpose.
You can defer paying LCT if you intend to use the car for no other purpose other than any of the following quotable purposes:
- holding it as trading stock, other than holding it for hire or lease
- conducting research and development for its manufacturer
- exporting it in circumstances where the export is GST-free.
You may stop using a car for a quotable purpose, for example, if you hold a car as trading stock and start using it for private purposes, or if it becomes a capital asset of your business.
You need to pay LCT on all luxury cars that you purchase or import, unless you intend to use it for certain 'quotable' purposes and quote your ABN in the approved format to the supplier (or Customs, in the case of importations).