A New Tax System (Luxury Car Tax) Act 1999
Part 5
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Rules for interpreting this Act
Division 25
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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 (d) a motor home or campervan.
Luxury car tax threshold - general
(3)
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;
(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)
If the * car has a fuel consumption not exceeding 7 litres per 100 kilometres as a combined rating under national road vehicle standards in force under section 12 of the Road Vehicle Standards Act 2018 , 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)
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 .
(6)
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.
View history note
Hide history noteA 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 (d) a motor home or campervan.
Luxury car tax threshold - general
(3)
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 2021/22 financial year is $69,152. The threshold for the 2020/21 financial year is $68,740.
(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)
If the * car has a fuel consumption not exceeding 7 litres per 100 kilometres as a combined rating under national road vehicle standards in force under section 12 of the Road Vehicle Standards Act 2018 , 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 .
CCH Note
The fuel-efficient car limit for the 2021/22 financial year is $79,659.
(5)
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 2021/22 financial year is $79,659.
(6)
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.
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