Credits and refunds
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If you're not registered for GST and LCT you can't make an LCT adjustment on a BAS. However, you may be entitled to a credit for LCT paid if:
- you overpaid LCT on a sale to you – that is, the supplier paid an amount of LCT that was not legally payable and you've borne the overpaid LCT
- you’ve borne LCT on a sale, or paid LCT on an importation, where you could have quoted but were unable to quote because you were unregistered at the time of supply or importation
- you’ve exported a luxury car (on which LCT has been paid) that is a GST-free export.
You're entitled a credit only if no-one else has made a valid claim for a credit in relation to the credit entitlement.
You must claim a credit within four years of becoming entitled to the credit.
Claiming a credit for LCT
To claim for a credit for overpayment of LCT:
Most primary producers and tourism operators can claim refunds of 8/33 of the LCT they have paid, up to a maximum of $3,000. This figure (8/33) is the difference between the current LCT rate of 33% and the previous LCT rate of 25%.
These refunds may also apply to imported luxury cars when the LCT has been paid.
Primary producers can claim a refund for only one eligible car purchased or leased in a financial year.
For LCT purposes, a primary producer is an individual, partnership, trust or company carrying on a primary production business, including:
- plant or animal cultivation
- fishing or pearling
- tree farming or felling.
Tourism operators can claim a refund for each eligible car purchased or leased in a financial year.
For LCT purposes, you are a tourism operator if both the following apply:
- you use the car solely for the purpose of carrying on a business, and
- the principal purpose of your business is carrying tourists for tourism activities.
Tourism activities must be both leisure activities and of a touring nature.
A leisure activity includes activities involving a visit by a tourist to a site that has one of the following:
- scenic beauty
- cultural interest
- environmental interest
- historical interest
- recreational interest.
Carrying tourists for tourism activities does not include transporting passengers by either:
- taxi or limousine for fares, or
- a hire-car service.
Claiming the refund
You must claim a refund within four years of becoming entitled to it.
You can claim a refund on the Application for luxury car tax refund – primary producers and tourism operators form.
You can't claim these refunds on your BAS or from the Department of Immigration and Border Protection.
Credits for LCT can only be claimed if you're not registered for GST and, as a result, are not entitled to an adjustment. Special refunds may be available if you're a primary producer or tourism operator who buys luxury cars.