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Edited version of your private ruling
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Ruling
Subject: GST and importation of a car
Question 1
Is GST payable upon the importation of a car (Car)?
Answer
No.
Relevant facts and circumstances
You are a TPI who holds a Gold Card and are eligible to purchase GST-free cars under section 38-505 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act).
You purchased the Car overseas and are about to import it into Australia. The Car is roadworthy and will be registered as a normal road vehicle. The Car is for your personal use.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 section 13-10
A New Tax System (Goods and Services Tax) Act 1999 section 38-505
Reasons for decision
Summary
While GST is not payable upon the importation of the Car, Luxury Car Tax (LCT) will be payable.
Detailed reasoning
GST is payable upon the importation of goods if the transaction is a taxable importation. Subsection 13-5(1) of the GST Act states:
(1) You make a taxable importation if:
(a) goods are imported; and
(b) you enter the goods for home consumption (within the meaning of the Customs Act 1901).
However, the importation is not a taxable importation to the extent that it is a *non-taxable importation.
An importation is a non-taxable importation if it meets the requirements of section 13-10 of the GST Act, this is if:
· it is a non-taxable importation under Part 3-2; or
· it would have been a supply that was *GST-free or *input taxed if it had been a supply.
In your case the equivalent supply of the Car would be GST-free under the provisions of section 38-505 of the GST Act provided that you intend to use the Car for your personal transportation for either:
· 2 years, or
· 40,000 kilometres from the date of purchase.
As this is your intention, you may make a non-taxable importation of the car for GST purposes.
Note that there is no similar treatment for veteran's cars under the LCT regime. If you purchase a car with a GST-inclusive value above the LCT threshold as you have, you must pay LCT.
The LCT threshold for the 2012-13 financial year is $59,133. If the car you purchase is considered to be fuel efficient (that is, a car with a fuel consumption not exceeding 7 litres per 100 kilometres), it will not be subject to LCT unless it exceeds the fuel-efficient car threshold, which is $75,375 for the 2012-13 financial year. You indicated in our conversation prior to lodging your private ruling application that the Car was not fuel efficient.
To work out the GST-inclusive value of the car, include the value of any parts, accessories or attachments supplied or imported at the same time as the car.
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