Luxury car tax refund for Primary Producers and Tourism Operators

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Jul 9, 2018 | Posted in Tax
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The Palaszczuk Government’s tax on ‘luxury vehicles’ commences 1 July 2018 imposing an extra 2% stamp duty on vehicles costing above $100,000. Although this is unavoidable, it provides a great opportunity to remind you of the refund available to Primary Producers and Tourism operators for the Federal Government’s Luxury Car Tax.

When the luxury car tax rate was increased to 33% in 2008, the rate remained at 25% for Primary Producers and Tourism Operators providing certain conditions are met. This allows for businesses operating in these industries to claim a refund of 8/33of the luxury car tax paid (the difference of the tax rates) to a limit of $3,000.

With the current year’s Luxury Car Tax threshold at $66,331, vehicles with retail prices (including GST) above this are entitled to a refund. Between $66,331 and $119,956, the refund is 8/33rds (roughly 25%) of the tax paid whilst vehicles above $119,956 are entitled to a capped refund of $3,000.

The conditions are:

  • The vehicle must be an all-wheel drive or 4-wheel drive vehicle; and
  • Have a ground clearance of 175mm or greater.

 

Primary Producers are eligible to claim the refund for one vehicle per financial year whilst Tourism Operators can claim the refund for all eligible vehicles. The refund must be claimed within four years of the purchase date so it is worth reviewing the books for vehicles bought in the last four years. An ATO Form, NAT 72601 (see link below), simply needs to be submitted to the ATO to claim the refund.

Please contact your Ulton advisor if you wish to claim this refund. Alternatively, please see the below links for more information.

ATO Form for LCT Refund:

https://www.ato.gov.au/assets/0/104/694/815/c79e49de-926f-481d-bb46-6232ac0075f7.pdf

ATO Guidance:

https://www.ato.gov.au/Business/Luxury-car-tax/Adjustments,-credits-and-refunds/Credits-and-refunds/#Refunds

Legislation:

http://classic.austlii.edu.au/au/legis/cth/consol_act/antscta1999373/s18.5.html

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