• Quoting an ABN

    If you're registered for GST, you may be able to defer paying LCT by quoting your ABN.

    You can do this if you plan to use the car only for one of the following purposes:

    • to hold it for trading stock (not including holding it for hire or lease)
    • to carry out research and development for the car's manufacturer
    • to export it GST-free.

    You can't quote your ABN if you intend to use a luxury car:

    • for personal use
    • for rally or race driving
    • for staff salary packaging
    • for promotion or sponsorship purposes
    • as an executive vehicle
    • as a capital asset.

    These restrictions apply even if you intend to sell the car at a later date. If you've quoted your ABN and then use the luxury car for such a purpose, you must pay the LCT.

    If you are a retail car dealer who purchases a car as trading stock, and that car will only be used as a demonstrator vehicle for potential customers to see or test drive, it is accepted that you are able to quote on the purchase of the car.  

    If you're a business and import a luxury car to restore and sell, you're holding it as trading stock. Provided you don’t intend to use the car for any other purpose, you can quote your ABN.

    On this page:

    When and how to quote

    You must quote your ABN at or before the time you purchase or import the luxury car – you can’t quote after buying it.

    However, in some circumstances you can make an adjustment.

    Your quotation must be in the following format:

    I hereby quote Australian business number <insert ABN> in relation to the supply of the luxury car as detailed above/attached.

    Name of business:

    Name of person authorised to quote:

    Signature of person authorised to quote:

    Date:

    End of example

    The quotation must be on, or attached to the order for the car or any other document provided to the supplier or Department of Immigration and Border Protection that clearly identifies the car – such as a contract, import warrant, or letter.

    If the order or document the quote relates to has more than one car on it, you must clearly identify those cars the quotation relates to.

    See also:

    Periodic quotations

    If you purchase multiple luxury cars in Australia over a period of time, you can give your supplier a single quotation to cover all your purchases for a period of 12 months or less – this is called a periodic quotation.

    You can't use a periodic quotation when importing luxury cars.

    The periodic quotation must be in the following format:

    I hereby quote Australian business number <insert ABN> in relation to the supply of all luxury cars obtained by me during the period <dd/mm/yy> to <dd/mm/yy> inclusive, except luxury cars about which I notify you to the contrary at or before the time of their supply.

    Name of business:

    Name of person authorised to quote:

    Signature of person authorised to quote:

    Date:

    End of example

    You must be able to clearly identify each luxury car you purchased during the quotation period. If you plan to purchase more luxury cars after the end of your specified quotation period, you'll need to give your supplier a new periodic quotation.

    Non-quotable purchases and periodic quotations

    If you need to buy a luxury car for a non-quotable purpose during the period covered by a periodic quotation you must tell your supplier that the car is to be used for a non-quotable purpose before you purchase it.

    It is a criminal offence if you don't tell the supplier that a luxury car is to be used for a non-quotable purpose, and if do you obtain the car free of LCT, you must account for it in your BAS as an increasing change-of-use adjustment.

    The notification must be in the following format:

    I hereby notify you that I am not quoting for the supply of the following luxury car(s):

    Description of car(s):

    Date of transaction:

    Australian business number:

    Name of business:

    Name of person authorised to make this declaration:

    Signature:

    Date:

    End of example

    Quoting on luxury cars you import

    If you import a luxury car, you must complete the Department of Immigration and Border ProtectionExternal Link entry forms, including the sections about quoting an ABN.

    Last modified: 08 Jan 2016QC 22113