A New Tax System (Goods and Services Tax) Act 1999
Note:
The special rules in this Part mainly modify the operation of Part 2-2 , but they may affect other Parts of Chapter 2 in minor ways.
Division 69 - Non-deductible expenses Subdivision 69-A - Non-deductible expenses generally
View history note
Hide history noteIf:
(a) you are entitled to an input tax credit for a * creditable acquisition or * creditable importation of a * car ; and
(b) you are not, for the purposes of the A New Tax System (Luxury Car Tax) Act 1999 , entitled to quote an * ABN in relation to the supply to which the creditable acquisition relates, or in relation to the importation, as the case requires; and
(c) the * GST inclusive market value of the car exceeds the * car limit for the * financial year in which you first used the car for any purpose;
the amount of the input tax credit on the acquisition or importation is the amount of GST payable on the supply or importation of the car up to 1/11 of that limit.
The car limit for the 2022/23 financial year is $64,741 (The indexation factor is 1.066, calculated as 413.8 divided by 388.1). The car limit for the 2021/22 financial year was $60,733. The car limit for the 2020/21 financial years was $59,136. The car limit for the 2018/19 to 2019/20 financial years was $57,581.
(1A)
(Repealed by No 156 of 2000)
(2)
However, if:
(a) the supply of the car is * GST-free to any extent under Subdivision 38-P ; or
(b) the importation of the car is non-taxable to any extent under paragraph 13-10(b) because it would have been GST-free to any extent under Subdivision 38-P if it had been a supply;
you are not entitled to the input tax credit for the acquisition or importation.
(3)
If your acquisition or importation is * partly creditable , the input tax credit is reduced to the extent (expressed as a percentage) to which the acquisition or importation is made for a * creditable purpose .
(4)
This section does not apply in relation to:
(a) the acquisition or importation of a * car that is not a * luxury car because of subsection 25-1(2) of the A New Tax System (Luxury Car Tax) Act 1999 ; or
Note:
Emergency vehicles, cars fitted to transport disabled people, non-passenger commercial vehicles, motor homes and campervans are not luxury cars under that subsection.
(b) the acquisition of a car by lease or hire.
(5)
This section has effect despite sections 11-25 and 15-20 (which are about the amount of input tax credits on creditable acquisitions and creditable importations).
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