Senate

A New Tax System (Indirect Tax and Consequential Amendments) Bill (No. 2) 1999

Revised Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)
THIS MEMORANDUM TAKES ACCOUNT OF AMENDMENTS MADE BY THE HOUSE OR REPRESENTATIVES TO THIS BILL AS INTRODUCED

Chapter 4 - Amendment of the A New Tax System (Luxury Car Tax) Act 1999

Outline of Chapter

4.1 This Chapter explains a change to the definition of 'car' in the LCT Act. The amendment is contained in Part 2 of Schedule 1 to this Bill.

4.2 Other amendments in Part 2 of Schedule 1 are explained in Chapter 1 (see paragraphs 1.29 to 1.34) and Chapter 11 (see paragraphs 11.36 and 11.37).

Definition of car

4.3 Currently, the definition of car in the LCT Act means a motor vehicle (except a motor cycle or similar vehicle) designed to carry a load of less than 2 tonnes and fewer than 9 passengers (section 27-1). Motor vehicle is defined to mean a motor-powered road vehicle (including a 4 wheel drive vehicle).

4.4 The definition of car is intended to include all passenger cars (including station wagons), all 4 wheel drive vehicles, light trucks, motor homes, campervans and hearses.

4.5 However, some luxury passenger vehicles, such as stretched limousines, are designed to carry more than 9 passengers. Therefore, these limousines do not fall within the LCT Act. This is contrary to the Government's original intention.

4.6 Item 167 amends the definition of 'car' in section 27-1 to include a limousine, regardless of the number of passengers it is designed to carry.


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