Div 25 heading substituted by No 176 of 1999, s 3 and Sch 1 item 187, effective 1 July 2000. The heading formerly read:

Division 25 - Meaning of some important concepts

S 25-1(2) amended by No 92 of 2000, s 3 and Sch 11 item 16F, by inserting " ; or " at the end of para (b), and by inserting paras (c) and (d), effective 1 July 2000.

S 25-1(3) substituted by No 29 of 2025, s 3 and Sch 1 item 1, effective 1 April 2025. For application provision, see history note under s 25-1(6) . S 25-1(3) formerly read:

Luxury car tax threshold - general

(3)
Subject to subsection (3A) and (4), the luxury car tax threshold is:

(a) the car depreciation limit that applied under the former Subdivision 42-B of the * ITAA 1997 ; or

(b) the car limit that applies under section 40-230 of that Act;

for the year in which the supply of the car occurred or the car was * entered for home consumption .

S 25-1(3) amended by No 101 of 2008, s 3 and Sch 1 item 11, by inserting " (3A) and " after " Subject to subsection " . For application provision, see history note under s 5-15(1) .

S 25-1(3) amended by No 101 of 2008, s 3 and Sch 1 items 4 and 5, by substituting " Subject to subsection (4), the " for " The " , applicable to taxable supplies of luxury cars and taxable importations of luxury cars on or after 3 October 2008 (regardless of when contracts for the supplies or importations were entered into). For further application provision, see history note under s 5-15(1) .

S 25-1(3) substituted by No 77 of 2001, s 3 and Sch 2 item 15, applicable to:

(a) depreciating assets:

(i) you start to hold under a contract entered into after 30 June 2001; or

(ii) you constructed where the construction started after that day; or

(iii) you start to hold in some other way after that day; and

(b) expenditure that does not form part of the cost of a depreciating asset incurred after that day.

S 25-1(3) formerly read:

(3)
The luxury car tax threshold is the car depreciation limit that applies under Subdivision 42-B of the * ITAA 1997 for the year in which:

(a) the supply of the car occurred; or

(b) the car was * entered for home consumption.

S 25-1(3) amended by No 176 of 1999, s 3 and Sch 1 item 188, by substituting " year in which:

(a) the supply of the car occurred; or

(b) the car was * entered for home consumption. "

for " year in which the supply of the car occurred. " , effective 1 July 2000.

S 25-1(3A) repealed by No 29 of 2025, s 3 and Sch 1 item 1, effective 1 April 2025. For application provision, see history note under s 25-1(6) . S 25-1(3A) formerly read:

(3A)
On and from 1 July 2012 the luxury car tax threshold is the luxury car tax threshold as at 30 June 2012 indexed according to a factor to be determined by the Parliament and to apply from 1 July 2012 or, if such a factor is not determined by the Parliament, indexed annually in accordance with the CPI indexation method provided for by Subdivision 960-M of the * ITAA 1997 , calculated using the index number referred to in subsection 960-280(1) of that Act.

S 25-1(3A) inserted by No 101 of 2008, s 3 and Sch 1 item 12. For application provision, see history note under s 5-15(1) .

S 25-1(4) amended by No 29 of 2025, s 3 and Sch 1 item 2, by substituting " 3.5 litres " for " 7 litres " , effective 1 April 2025. For application provision, see history note under s 25-1(6) .

S 25-1(4) inserted by No 101 of 2008, s 3 and Sch 1 item 6, applicable to taxable supplies of luxury cars and taxable importations of luxury cars on or after 3 October 2008 (regardless of when contracts for the supplies or importations were entered into). For further application provision, see history note under s 5-15(1) .

S 25-1(4) amended by No 164 of 2018, s 3 and Sch 4 item 2, by substituting " national road vehicle standards in force under section 12 of the Road Vehicle Standards Act 2018 " for " vehicle standards in force under section 7 of the Motor Vehicle Standards Act 1989 " , effective 1 July 2021.

S 25-1(5) inserted by No 101 of 2008, s 3 and Sch 1 item 6, applicable to taxable supplies of luxury cars and taxable importations of luxury cars on or after 3 October 2008 (regardless of when contracts for the supplies or importations were entered into). For further application provision, see history note under s 5-15(1) .

S 25-1(6) substituted by No 29 of 2025, s 3 and Sch 1 item 3, effective 1 April 2025. S 25-1(6) formerly read:

(6)
In indexing the * fuel-efficient car limit , Subdivision 960-M of the * ITAA 1997 applies as if:
(a) the table in section 960-265 of that Act included an item referring to the fuel-efficient car limit and to subsection (5) of this section; and
(b) the reference in subsection 960-270(1) of that Act to provisions of that Act included a reference to subsection (5) of this section; and
(c) section 960-270 of that Act applied, and section 960-285 of that Act did not apply, in relation to the fuel-efficient car limit; and
(d) the reference in subsection 960-280(2) of that Act to the car limit included a reference to the fuel-efficient car limit.

No 29 of 2025, s 3 and Sch 1 item 4, contained the following application provision:

4 Application of amendments  
Application of amendments - general

(1)
The amendments made by this Schedule apply in relation to supplies, and importations, of cars on or after 1 July 2025.

Continued application of old subsection 25-1(4) if car was used for certain purposes before 1 July 2025

(2)
However, old subsection 25-1(4) continues to apply, in relation to a supply or importation of a car on or after 1 July 2025, if, before that date:
(a) an entity made a supply or importation of the car; and
(b) the car was used in Australia for a purpose other than a purpose mentioned in subsection 9-5(1) of the Act.

Definitions

(3)
In this item:

Act
means the A New Tax System (Luxury Car Tax) Act 1999 .

old subsection 25-1(4)
means subsection 25-1(4) of the Act as in force immediately before the commencement of this Schedule.

S 25-1(6) inserted by No 101 of 2008, s 3 and Sch 1 item 6, applicable to taxable supplies of luxury cars and taxable importations of luxury cars on or after 3 October 2008 (regardless of when contracts for the supplies or importations were entered into). For further application provision, see history note under s 5-15(1) .