• The LCT gap results

    Table 3.1 shows the estimated LCT gap for the periods 2009-10 and 2010-11.

    Table 3.1 : Luxury car tax gap

    Year

    Theoretical LCT payable $m

    Actual LCT payable $m

    LCT gap $m

    LCT gap as a percentage of theoretical LCT payable

    LCT gap as a percentage of actual LCT payable

    2009-10

    536

    510

    26

    4.90%

    5.10%

    2010-11

    541

    513

    28

    5.20%

    5.50%

    The table shows that the LCT gap increased by 0.3 percentage points between 2009-10 and 2010-11.

    The ATO have not measured LCT gap with debt. LCT debt is minimal, and since it is usually concentrated on a few taxpayers, this can distort the results on a yearly basis.

    The ATO do not attempt to estimate the net LCT gap as there are currently no independent sources available to reliably estimate the value of LCT refundable claims (such as instances where a sale is terminated after registration). In 2010-11 there was around $30 million in LCT refundable.

    The ATO separately monitors LCT refundable amounts to ensure LCT refund claims are appropriate.

      Last modified: 13 Nov 2015QC 26611