• Definitions

    Frequently used terms in this document

    Term

    Definition

    Car

    A car is a motor-powered road vehicle designed to carry a load of less than two tonnes and fewer than nine passengers.

    It does not include motorcycles or similar vehicles.

    Commercial vehicle

    Commercial vehicles are designed for the principle purpose of carrying goods used for business or trade.

    They are not subject to LCT.

    Consideration

    Any payment made in return for the supply of a luxury car.

    Emergency vehicles

    The following vehicles are considered emergency vehicles:

    • a vehicle registered in a state or territory as an emergency vehicle
    • an ambulance
    • a mobile intensive care ambulance (MICA) or similar vehicle is
      • fitted with a siren and flashing warning lights
      • used to transport paramedics and equipment to the site of an accident.
    • a fire-fighting vehicle
      • designed, permanently fitted out and equipped for fighting and preventing fires
      • with external markings identifying it as a fire-fighting vehicle.
    • a police vehicle equipped with a siren and flashing warning lights
    • an emergency-response or search-and-rescue vehicle
      • designed and permanently fitted out for emergency-response or search-and-rescue operations
      • with external markings identifying it as a vehicle of that kind.
    • a vehicle
      • designed and permanently fitted out for responding to and dealing with an environmental emergency
      • with external markings that identify it as a vehicle of that kind.
    • a vehicle purchased for immediate modification or conversion into a vehicle mentioned in one of the items above before its first use
    • an ambulance or similar vehicle specially equipped for carrying sick or wounded animals.

    Fuel-efficient cars

    A fuel-efficient car has a fuel consumption that does not exceed seven litres per 100 kilometres as a combined rating under the vehicle standards in force under section 7 of the Motor Vehicle Standards Act 1989.

    Luxury car tax value

    The price of a vehicle excluding any luxury car tax (LCT) and any other Australian tax or Australian fee or charge other than GST and customs duty.

    If you supply a car to an associate or by hire/lease, the LCT value is the full GST market value of the car (excluding any LCT and any other Australian tax or Australian fee or charge other than GST and customs duty).

    Net amount

    Your 'net amount' is increased by the amount of LCT attributable to that tax period.

    It does not include the amount of LCT payable for a taxable importation.

    Price

    The term ‘price’ for LCT purposes is generally the amount of money paid for the car.

    To the extent the payment for the supply is not in money, the price means the GST inclusive market value of the consideration supplied.

    See also:

    • MT2024: Fringe benefits tax: dual cab vehicles eligibility for exemption where private use is limited to certain work-related travel
      Last modified: 02 Nov 2016QC 39921