Reporting and keeping records

You report and pay LCT on your activity statement the same way that you do other business taxes.

You account for LCT using the same tax period as you do for GST. Depending on your circumstances, you pay LCT on a monthly, quarterly or annual basis.

If you report and pay GST using a pre-printed instalment amount (option 3 on the activity statement), don't complete the LCT section of your activity statement. We have included your LCT in this amount.

You need to report and pay LCT on time to avoid interest and penalties.

See also:

• Completing the LCT labels
• Annual GST return

Keeping accurate LCT records

You need to record your sales and import transactions so you can report your liabilities accurately and substantiate any adjustments, credits or refunds.

You must keep these records for five years.

If you are reviewed

If you are reviewed by us, you'll need to produce records to show how you have complied with your LCT obligations. These include:

• records showing that you're conducting an enterprise involving trading in luxury cars, such as  
  • motor dealer’s licence and other legal documents required by law to offer cars for sale in your state/territory, such as road safety certificates
  • evidence of having suitable premises to store and display cars of the type you're trading in
  • approval to conduct a business involving motor trading at your place of business
  • transaction records as required by your motor dealer’s licence
  • a business plan or other records showing how you're intending to operate the business
   
• records to show how you acquired, imported, purchased and paid for the cars, such as  
  • orders and any purchase documentation such as consignment agreements and contracts
  • bailment agreement, including the contract and schedule showing when cars were placed into and removed from bailment, with the value assigned to the car
  • records showing the details of the importation, including the date
  • bank or other financial records showing payments to the supplier
  • full finance contracts and applications for finance, showing that the car is available to be resold or traded
  • tax invoices and other purchase records showing the LCT payable on the supply
  • quotes you've issued for the purchase
  • the fuel efficiency rating, if the LCT amount is based on the fuel efficient threshold
  • registration details of the cars you're trading in
  • invoices and contracts showing when, where and how any additional supplies or modifications were made
  • invoices for consumables and services relating to the car, such as fuel, repairs, servicing, transportation and modifications
   
• records showing how you've used a car while you held it, such as  
  • the odometer readings on the dates you acquired it and sold or otherwise resupplied it
  • record of use, such as a log book showing dates, times, distances and reasons why the car was driven
  • verifiable details of all drivers of the car, including why they drove it
  • insurance details, including insurance applications made and full policy documents that show that the car can be used for motor trading purposes
  • advertising and marketing records, including details of all sales leads and follow-ups, including potential purchasers with their contact details
   
• records showing how you've sold, exported or otherwise resupplied the car, such as  
  • tax invoices and sales contracts
  • quotes received for the supply of the cars
  • export records
  • details of any motor vehicle incentive payment received for the car
  • records of how you calculated the LCT payable, including any previously payable amounts
  • records of how you determined the GST-inclusive market value of the car if the car was supplied to an associate or by way of hire or lease.
   

If the purchaser has quoted their ABN for the purpose of deferring the LCT, we expect that you'll have:

• the ABN quotation supplied by the recipient of the supply, received at or before the time of the supply
• a copy of the purchaser’s motor dealer’s licence or other entitlement to trade in cars
• checked that the ABN quoted is valid and is registered for GST – you can use the ABN LookupExternal Link tool.

See also:

• Motor vehicle incentive payments
• Quoting an ABN

You need to report and pay luxury car tax (LCT) on time to avoid interest and penalties.