• 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.
    Further information

    For more information, refer to GST and LCT on cars you buy - people with disabilities (NAT 4325).

    End of further information
      Last modified: 07 Jun 2012QC 16411