Primary producers and tourism operators will be eligible to apply for additional refunds of luxury car tax on vehicles purchased or imported after 1 July 2019.
Generally, motor vehicles purchased above a certain threshold will incur additional taxes. The rate is usually 33%, although a small refund is allowed in certain industries.
Primary producers and tourism operators can now use their BAS lodgements to get the increased refund, beginning with the September 2019 BAS.
A luxury car is defined as a motor-powered road vehicle that is:
- designed to carry a load of less than two tonnes and fewer than nine passengers. This includes station wagons, four-wheel drives and light trucks, but not motorcycles or similar vehicles, or
- a limousine, irrespective of its passenger-carrying capacity.
LCT threshold The current threshold where luxury car tax will apply for the 2019/20 income year are:
- $67,525 for regular vehicles, or
- $75,526 for “fuel-efficient” vehicles.
Current refund for primary producers and tourist operators
When the LCT percentage was changed from 25% to 33% in May 2008, an adjustment became necessary for primary producers and tourist operators. This adjustment was to ensure businesses in these industries would not be required to pay additional LCT.
Under the current rules, businesses who are primary producers or tourist operators are able to claim a refund of the lesser of:
- 8/33rds of the LCT charged for the vehicle, and
Increase in refundable amount
The maximum refund available for primary producers and tourism operators has been increased from $3,000 to $10,000.