2.h. How is GST and LCT calculated on cars purchased by a person with a disability?
Non-interpretative - straight application of the law.
If the supply of a car is GST-free and the price exceeds the car limit, the car is a luxury car and subject to luxury car tax.
When the supply of a car is GST-free (to an extent) to a person with a disability, the luxury car tax value of the car will need to include an amount equal to the amount of GST that would otherwise have been payable. A notional GST amount is imputed in the luxury car tax value for purposes of calculating luxury car tax.
The luxury car tax value does not include modifications made to a car that are solely for:
- adapting it for driving by a person with a disability, or
- adapting it for transporting a person with a disability.
For more information, refer to GST and LCT on cars you buy - people with disabilities (NAT 4325).
End of further information