• Credits and refunds

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    Credits

    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:

    Refunds

    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

    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.

    See also:

    Tourism operators

    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.

    Last modified: 11 Jan 2016QC 39467