Luxury Car Tax

Luxury Car Tax

Luxury Car Tax is a tax collected by the Australian Taxation Office on behalf of the Australian Government.

Luxury Car Tax (LCT) is payable by businesses which purchase or import luxury cars, unless the business' ABN number is quoted in the correct format to the supplier or Customs.

LCT is charged in addition to the Goods & Services Tax (GST), but it is not payable on the full price of the vehicle. LCT is only payable on 33%(up from 25% as of 1/7/08, though interestingly, no senate approval for this increase had been obtained) of the value of the GST-exclusive value which exceeds the LCT threshold. The LCT threshold is currently AUD$57,180. (as 01/07/2008)

LCT is reported on an organisation's Business Activity Statement at labels 1E and 1F. An organisation is not required to complete the LCT section of their BAS when they have elected the GST Instalment Option as LCT is included in this amount. Organisations which report and pay GST annually are only required to report LCT on their annual GST return (GSTR)

Businesses are only permitted to quote their ABN when the vehicle is used for the following purposes:
*Exporting the vehicle in circumstances where the export is GST-free
*Conducting research or development for the vehicle's manufacturer
*Holding the vehicle as trading stock (not including for rent or leasing purposes)

The LCT becomes due and payable when you on-sell the luxury car or stop using it for a quotable purpose. This might happen if you hold a car as trading stock and start using it for private purposes or if it becomes a capital asset of your business. [Cite web| url=http://www.ato.gov.au/businesses/content.asp?doc=/content/27796.htm&page=1&H1=&pc=001/003/001/001/001&mnu=58&mfp=001&st=&cy=1|title=Luxury car tax – how to complete your activity statement|accessdate=2007-07-07|year=2007|publisher=Australian Taxation Office]

LCT Statistics

Luxury Car Tax statistics can be found in the Taxation Office's publication Taxation Statistics.
* [http://www.ato.gov.au/corporate/content.asp?doc=/content/00117625.htm&page=43&H43 GST and other indirect taxes]

Notes


Wikimedia Foundation. 2010.

Игры ⚽ Нужно решить контрольную?

Look at other dictionaries:

  • Luxury vehicle — Luxury Car redirects here. For the Chinese film, see Luxury Car (film). Luxury vehicle is a marketing term for a vehicle that provides luxury pleasant or desirable features beyond strict necessity at increased expense (see: definition of luxury) …   Wikipedia

  • tax — {{Roman}}I.{{/Roman}} noun ADJECTIVE ▪ high, low ▪ direct, indirect ▪ flat ▪ basic rate, higher rate (both BrE) …   Collocations dictionary

  • luxury — noun 1 comfort and pleasure ADJECTIVE ▪ great, pure, sheer ▪ It was sheer luxury to step into a hot bath. ▪ ultimate ▪ the ultimate luxury of a sauna in your own home …   Collocations dictionary

  • Luxury Automobile Limitations — An annual limit on the amount of depreciation that can be taken on a luxury car used for business purposes. This amount is indexed each year for inflation. The purpose of luxury automobile limitations is to control the type and amount of money… …   Investment dictionary

  • Mineral Resource Rent Tax — The Minerals Resource Rent Tax (MRRT) is a proposed tax on profits generated from the exploitation of non renewable resources in Australia.[1] It is the replacement for the proposed Resource Super Profit Tax (RSPT). The tax, levied on 30% of the… …   Wikipedia

  • Luxury Tax — A tax placed on products or services that are deemed to be unnecessary or non essential. This type of tax is an indirect tax in that the tax increases the price of the good or service and is only incurred by those who purchase or use the product …   Investment dictionary

  • tax — ▪ I. tax tax 1 [tæks] noun [countable, uncountable] TAX an amount of money that you must pay to the government according to your income, property, goods etc, that is used to pay for public services: • The President said he would cut taxes for… …   Financial and business terms

  • car — noun 1 road vehicle with four wheels ⇨ See also ↑automobile ADJECTIVE ▪ fast ▪ new ▪ diesel (esp. BrE), electric, fuel efficient (esp. AmE), hybrid …   Collocations dictionary

  • Executive car — is a British term that refers to a car s size and is used to describe an automobile larger than a large family car. In official use, the term is adopted by EuroNCAP, a European organization founded to test car safety. History The term was coined… …   Wikipedia

  • Chicken tax — U.S. intensive chicken farming led to the 1961–1964 Chicken War with Europe. The Chicken tax was a 25% tariff on potato starch, dextrin, brandy, and light trucks imposed in 1963 by the United States under President Lyndon B. Johnson as a response …   Wikipedia

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”