Luxury Car Tax Determination

LCTD 2003/1

Luxury car tax: what is the luxury car tax threshold for the 2003-2004 financial year?

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FOI status:

may be released

Preamble
This document is a ruling for the purposes of section 37 of the Taxation Administration Act 1953. You can rely on the information presented in this document which provides advice on the operation of the Luxury Car Tax.

1. The luxury car tax threshold for the 2003-2004 financial year is equal to the car limit and is used to determine if luxury car tax is payable.[F1]

2. The car limit for the 2003-2004 financial year is $57,009. This limit is indexed annually in line with movements in the motor vehicle purchase sub-group of the Consumer Price Index.

3. For the 2001-02 year this index was 425.8 and for the 2002-03 year the index was 424.9 resulting in an indexation factor of 0.998, that is, less than 1. The law requires that where the indexation factor is less than 1, the car limit is not to be indexed.[F2] As a result, the car limit remains the same as that which applied in 2002-2003 financial year.

Example

4. On 2 July 2003 a dealer supplies a car with a GST inclusive value of $66,000.

5. As the GST inclusive value exceeds the luxury car tax threshold of $57,009, luxury car tax may be payable.

Date of Effect

6. This Determination applies to the financial year commencing on 1 July 2003.

Commissioner of Taxation
25 June 2003

Footnotes

1 Subsection 25-1(3) of the A New Tax System (Luxury Car Tax) Act 1999. The car limit is also used to calculate depreciation deductions under the income tax law - see TD 2003/18.

2 Subsection 960-270(2) of the Income Tax Assessment Act 1997.

Not previously released as a draft.

References

ATO references:
NO 2003/06672

ISSN: 1448-4919

Related Rulings/Determinations:

GSTR 1999/1
TD 2003/18

Subject References:
car limit
luxury car tax threshold

Legislative References:
TAA 1953 37
ANTS (LCT)A 1999 25-1(3)
ITAA 1997 960-270(2)

LCTD 2003/1 history
  Date: Version: Change:
You are here 25 June 2003 Original ruling  
  20 April 2016 Withdrawn