Luxury Car Tax Changes
There have been recent changes made to the Luxury Car Tax (LCT) that affect all luxury cars in Australia. LCT is an additional tax and charged at a rate of 33% on top of the cars retail price once it exceeds the LCT threshold.
From 1 January 2020 primary producers can claim a refund of LCT they have paid on one eligible vehicle per financial year, up to a maximum of $10,000, for vehicles delivered to them on or after 1 July 2019.
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.
If an eligible vehicle was delivered to a primary producer on or before 30 June 2019, they can only claim a refund of 8/33 of the LCT they have paid, up to a maximum of $3,000.
From 1 January 2020 tourism operators can claim a refund of LCT they have paid for each eligible vehicle, up to a maximum of $10,000, delivered to them on or after 1 July 2019.
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
- 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
- a hire-car service.
If you wish to apply for a refund or discuss eligibility, please do not hesitate to contact our office on 1300 620 345.