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A New Tax System (Luxury Car Tax) Act 1999

Part 5 - Rules for interpreting this Act  

Division 25 - Luxury cars  

25-1  Meaning of luxury car  

(1)  

A luxury car is a *car whose *luxury car tax value exceeds the *luxury car tax threshold.

(2)  

However, a *car is not a *luxury car if it is:


(a) a vehicle that is specified in the regulations to be an emergency vehicle, or that is in a class of vehicles that are specified in the regulations to be emergency vehicles; or


(b) specially fitted out for transporting *disabled people seated in wheelchairs (unless the supply of the car is *GST-free under Subdivision 38-P of the *GST Act); or


(c) a commercial vehicle that is not designed for the principal purpose of carrying passengers; or
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(d) a motor home or campervan.
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Luxury car tax threshold - general

(3)  

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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.

CCH Note

The luxury car tax threshold for the 2016/17 financial year is $64,132 (Luxury Car Tax Determination LCTD 2016/1). The threshold for the 2015/16 financial year was $63,184.

(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.

Luxury car tax threshold - fuel efficient cars

(4)  

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If the *car has a fuel consumption not exceeding 7 litres per 100 kilometres as a combined rating under vehicle standards in force under section 7 of the Motor Vehicle Standards Act 1989, the luxury car tax threshold is the *fuel-efficient car limit for the year in which the supply of the car occurred or the car was *entered for home consumption.

(5)  

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The fuel-efficient car limit for the 2008-09 *financial year is $75,000. The limit is indexed annually using Subdivision 960-M of the *ITAA 1997.

CCH Note

The fuel-efficient car limit for the 2016/17 financial year is $75,526 (Luxury Car Tax Determination LCTD 2016/1). The limit for the 2015/16 financial year was $75,375.

(6)  

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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.


 



This information is provided by CCH Australia Limited. View the disclaimer and notice of copyright.
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