Compilation #27 | Effective 2025-04-01
FRBR Work URI: /akn/au/act/1999/76
This Act may be cited as the A New Tax System (Luxury Car Tax) Act 1999.
This Act commences on 1 July 2000.
The luxury car tax law binds the Crown in right of each of the States, of the Australian Capital Territory and of the Northern Territory. However, it does not make the Crown liable to be prosecuted for an offence.
This Act is about the luxury car tax. It is a single stage tax that is imposed on supplies and importations of luxury cars and is in addition to any GST that may be payable. The tax is only calculated on the value of the car that exceeds the luxury car tax threshold.
Note: The luxury car tax is imposed by 3 Acts:
(a) the A New Tax System (Luxury Car Tax Imposition—General) Act 1999; and
(b) the A New Tax System (Luxury Car Tax Imposition—Customs) Act 1999; and
(c) the A New Tax System (Luxury Car Tax Imposition—Excise) Act 1999.
Part 2 sets out the rules that establish liability for the luxury car tax. The tax applies to both supplies and importations of luxury cars. (Divisions 5 and 7)
There is a system of quoting which is designed to prevent the tax becoming payable until the car is sold or imported at the retail level. (Division 9)
Amounts of luxury car tax are included in net amounts under the GST system. This has the effect of incorporating the luxury car tax into the payments and refunds system for the GST. However, assessed luxury car tax on importations is paid with customs duty (where appropriate). (Division 13)
Adjustments to the net amount can arise out of circumstances that occur after the supply or importation of the car. (Division 15)
Credits can arise for people who are not entitled to an adjustment but who, for example, have paid too much tax. (Division 17)
Refunds can arise for primary producers and tourism operators in certain circumstances. (Division 18).
Part 4 deals with miscellaneous matters.
Part 5 contains the Dictionary, which sets out a list of all the terms that are defined in this Act. It also sets out the meanings of some important concepts and rules on how to interpret this Act.
Parts 3-10, 4-1 and 4-15 in Schedule 1 to the Taxation Administration Act 1953 contain provisions relating to the administration of the luxury car tax, and to the collection and recovery of amounts of luxury car tax.
Many of the terms used in this Act are defined.
Most defined terms in this Act are identified by an asterisk appearing at the start of the term: as in “luxury car”. The footnote that goes with the asterisk contains a signpost to the Dictionary definitions in section 27-1.
(1) Once a defined term has been identified by an asterisk, later occurrences of the term in the same subsection are not usually asterisked.
(2) Terms are not asterisked in the non-operative material contained in this Act.
Note: The non-operative material is described in Division 4.
(3) The following basic terms used throughout the Act are not identified with an asterisk.
Within a definition, the defined term is identified by bold italics.
In addition to the operative provisions themselves, this Act contains other material to help you identify accurately and quickly the provisions that are relevant to you and to help you understand them.
This other material falls into 2 main categories.
One category is the explanatory section in many Divisions. Under the section heading “What this Division is about”, a short explanation of the Division appears in boxed text.
Explanatory sections form part of this Act but are not operative provisions. In interpreting an operative provision, explanatory sections may only be considered for limited purposes. They are set out in section 23-10.
The other category consists of material such as notes and examples. These also form part of the Act. They are distinguished by type size from the operative provisions (except for formulas), but are not kept separate from them.
Luxury car tax is payable on taxable supplies of luxury cars. This Division defines taxable supplies of luxury cars, states who is liable for the luxury car tax, and describes how to work out the amount of luxury car tax on those supplies.
You must pay the luxury car tax payable on any taxable supply of a luxury car that you make.
(1) You make a taxable supply of a luxury car if:
you supply a luxury car; and
the supply is made in the course or furtherance of an enterprise that you *carry on; and
the supply is *connected with the indirect tax zone; and
you are registered, or required to be registered.
(2) However, you do not make a taxable supply of a luxury car if:
the recipient *quotes for the supply of the car; or
the car is more than 2 years old; or
you export the car in circumstances where the export is GST-free under Subdivision 38-E of the GST Act.
(3) A *car is more than 2 years old at the time of a supply if:
for a car that has not been *imported—the car was manufactured more than 2 years before the time of the supply; or
the car was *entered for home consumption more than 2 years before the time of the supply.
The amount of luxury car tax payable on a taxable supply of a luxury car is as follows:
where:
rate is the rate applicable under:
(a) the A New Tax System (Luxury Car Tax Imposition—General) Act 1999; or
(b) the A New Tax System (Luxury Car Tax Imposition—Customs) Act 1999; or
(c) the A New Tax System (Luxury Car Tax Imposition—Excise) Act 1999.
However, if luxury car tax has already become payable in respect of the car, the amount of luxury car tax payable on a taxable supply of a luxury car is:
the amount of luxury car tax on the supply (worked out in accordance with subsection (1)); minus
the sum of all luxury car tax that was payable in respect of any previous *importation or supply of the car.
The amount of luxury car tax payable on a taxable supply of a luxury car is zero if the amount in paragraph (a) is less than the amount in paragraph (b).
In determining the luxury car tax that was payable in respect of any previous *importation or supply of a car for the purposes of paragraph (2)(b), take into account luxury car tax adjustments (if any) other than luxury car tax adjustments made under Subdivision 15-C (bad debts adjustments).
(1) In relation to the supply of a *car, the luxury car tax value is the *price of the car excluding:
any luxury car tax for that supply; and
any other Australian tax or Australian fee or charge, other than GST and customs duty;
payable on the supply.
If the supply of the car is GST-free (to an extent) because of Subdivision 38-P of the GST Act, the luxury car tax value of the car includes an amount equal to the amount of GST that was not payable because of Subdivision 38-P.
Supply of car to associate etc.
If:
the supply of the car is to an associate of the supplier, or an employee or officer of either the supplier or an associate of the supplier; and
there is no consideration for the supply or the consideration is less than the GST inclusive market value of the car;
the luxury car tax value of the car is the GST inclusive market value of the car excluding any luxury car tax payable on the supply.
Additional supplies and modifications for cars
The luxury car tax value of a car includes the *price of all supplies in relation to the car that are made to, or are paid for by, the recipient of the car, or an associate of the recipient and that are:
made before the *end supply of the car; or
made under an arrangement made with the supplier of the car, or with an associate of the supplier, at or before the time of the end supply.
If a supply in relation to the car is made by an associate of the recipient of the car and there is no consideration for the supply or the consideration is less than the GST inclusive market value of the car, the *price of the supply is the GST inclusive market value of the supply.
Modifications for disabled people
The luxury car tax value of a car does not include the *price of modifications made to the car solely for the purpose of:
adapting it for driving by a disabled person; or
adapting it for transporting a disabled person.
Supply of car by lease or hire
The luxury car tax value of a car that is supplied by way of lease or hire is the GST inclusive market value of the car excluding:
any luxury car tax payable on the supply; and
any other Australian tax or Australian fee or charge, other than GST and customs duty; and
the *price of any modifications referred to in subsection (5).
Luxury car tax is payable on taxable importations of luxury cars. This Division defines taxable importations of luxury cars, states who is liable for the luxury car tax and describes how to work out the amount of luxury car tax on those importations.
You must pay the luxury car tax payable on any taxable importation of a luxury car that you make.
(1) You make a taxable importation of a luxury car if:
the luxury car is *imported; and
you *enter the car for home consumption.
Note: There is no registration requirement for taxable importations, and the importer need not be carrying on an enterprise.
The *importation of the car includes any car parts, accessories or attachments that you import at the same time as the car and that could reasonably be expected to be fitted to the car.
(3) However, you do not make a taxable importation of a luxury car if:
you quote for the *importation of the car; or
luxury car tax has already become payable in respect of the car; or
you are registered at the time of the importation, and the car:
is covered by item 7 in Schedule 4 to the Customs Tariff; and
is imported by the library, museum, gallery or institution to which it is consigned; and
is imported for the sole purpose of public display; or
the car is covered by item 10, 11, 15, 18, 21 or 24 in Schedule 4 to the Customs Tariff; or
the importation of the car is a non-taxable re-importation.
(4) To avoid doubt, a reference to a car that is covered by an item in Schedule 4 to the Customs Tariff includes a reference to a car to which that item would apply apart from the operation of subsection 18(1) of the Customs Tariff Act 1995.
The amount of luxury car tax payable on a taxable importation of a luxury car is as follows:
where:
luxury car tax value of the *car is the sum of:
(a) the customs value (for the purposes of Customs Act 1901) of the car and of any *car parts, accessories or attachments covered by subsection 7-10(2); andDivision 2 of Part VIII of the
the amount paid or payable:
for the *international transport of the car and any car parts, accessories or attachments covered by subsection 7-10(2) to their *place of consignment in the indirect tax zone; and
to insure the car and any car parts, accessories or attachments covered by subsection 7-10(2) for that transport;
to the extent that the amount is not already included under paragraph (a); and
any customs duty payable in respect of the *importation of the car and of any car parts, accessories or attachments covered by subsection 7-10(2); and
any GST payable in respect of the importation of the car and of any car parts, accessories or attachments covered by subsection 7-10(2); and
if the *importation of the car is GST-free (to an extent) because of paragraph 13-10(b) of the GST Act in conjunction with Subdivision 38-P of that Act—an amount equal to the amount of GST that was not payable because of paragraph 13-10(b) and Subdivision 38-P.
rate is the rate applicable under:
(a) the A New Tax System (Luxury Car Tax Imposition—General) Act 1999; or
(b) the A New Tax System (Luxury Car Tax Imposition—Customs) Act 1999; or
(c) the A New Tax System (Luxury Car Tax Imposition—Excise) Act 1999.
The Commissioner may, in writing:
(a) determine the way in which the amount paid or payable for a specified kind of transport or insurance is to be worked out for the purposes of paragraph (b) of the definition of luxury car tax value in subsection (1); and
in relation to importations of a specified kind or importations to which specified circumstances apply, determine that the amount paid or payable for a specified kind of transport or insurance is taken, for the purposes of that paragraph, to be zero.
(1) An *importation of a *car is a non-taxable re-importation if:
the car was exported from the indirect tax zone and is returned to the indirect tax zone, without having been subject to any treatment, industrial processing, repair, renovation, alteration or any other process since its export; and
the importer:
is the manufacturer of the car; or
has previously acquired the car, and the supply by means of which the importer acquired the goods was a taxable supply of a luxury car; or
has previously imported the car, and the previous importation was a taxable importation of a luxury car.
(1A) An *importation of a *car is a non-taxable re-importation if:
the car was exported from the indirect tax zone and is returned to the indirect tax zone; and
the car has been subject to any treatment, industrial processing, repair, renovation, alteration or any other process since its export; and
the ownership of the car has not changed in the period beginning immediately before the car was exported and ending at the time it is returned to the indirect tax zone.
(2) An importation of a *car is a non-taxable re-importation if:
the importer had manufactured, acquired or imported the car before 1 July 2000; and
the car was exported from the indirect tax zone before, on or after 1 July 2000; and
the car is returned to the indirect tax zone on or after 1 July 2000, without having been subject to any treatment, industrial processing, repair, renovation, alteration or any other process since its export; and
the ownership of the car when it is returned to the indirect tax zone is the same as its ownership on 1 July 2000.
Note: An importation covered by this section may also be duty-free under item 17 of Schedule 4 to the Customs Tariff Act 1995.
In certain circumstances you can quote for a supply or importation of a luxury car and not pay the luxury car tax. This is designed to avoid the luxury car tax becoming payable unless the car is sold or imported at the retail level.
You are entitled to quote your ABN in relation to a supply of a luxury car or an *importation of a luxury car if, at the time of quoting, you have the intention of using the car for one of the following purposes, and for no other purpose:
holding the car as trading stock, other than holding it for hire or lease; or
research and development for the manufacturer of the car; or
exporting the car in circumstances where the export is GST-free under Subdivision 38-E of theGST Act.
However, you are not entitled to quote unless you are registered.
You may make a periodic quote under this section for supplies that you intend to receive from a supplier during the period covered by the periodic quote. The period must not exceed 12 months.
If you make a periodic quote on or before the first day of the period to which the quote relates, you are to be treated as having *quoted your ABN for all supplies from the supplier during that period, other than supplies in respect of which you have notified the supplier in accordance with subsection (3).
If you are not entitled to quote for a particular supply from the supplier during the period, you must notify the supplier of that fact at or before the time of the supply. The notification must be in the approved form.
You commit an offence if you contravene subsection (3).
Penalty: 20 penalty units.
Note 1: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.
Note 2: See Crimes Act 1914 for the current value of a penalty unit.section 4AA of the
Section 9-25 applies to a quote that you are treated as having made under subsection (2) of this section for a particular supply.
A quote (including a periodic quote) must be in the approved form.
A quote is not effective unless it is made at or before the time of the supply or *importation.
If you quote in circumstances in which you are not entitled to quote, or the quote is not in the approved form, the quote is nevertheless effective for the purpose of subsection 5-10(2) or 7-10(3) (whichever is relevant), unless section 9-25 applies.
A quote is not effective, so far as it would have resulted in you not paying luxury car tax, if at the time of the quote the person to whom the quote is made has reasonable grounds for believing that:
you are not entitled to quote in the particular circumstances; or
the quote is not made in the approved form; or
the quote is false or misleading in a material particular (either because of something stated in the quote or something left out).
You must not, in relation to any supply or *importation of a luxury car:
quote an ABN:
in circumstances in which you are not entitled to quote; or
in contravention of subsection 9-15(1); or
in any other way falsely quote an ABN.
Penalty: 20 penalty units.
Note 1: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.
Note 2: See Crimes Act 1914 for the current value of a penalty unit.section 4AA of the
Note 3: Section 23 of the A New Tax System (Australian Business Number) Act 1999 provides penalties for misuse of ABNs.
Luxury car tax on supplies of luxury cars is added to net amounts under Division 17 of the GST Act. Adjustments in relation to supplies or importations can be made to net amounts. They may increase or decrease net amounts.
Luxury car tax on importations of luxury cars is not incorporated into net amounts but is generally paid with customs duty.
Note: Division 165 (Anti-avoidance) of the GST Act will cover avoidance schemes relating to luxury car tax so far as they affect net amounts, because such schemes affect amounts payable under the GST Act.
Your net amount for a tax period is increased by the sum of all of the amounts of luxury car tax (if any) that are attributable to that tax period, other than amounts on *taxable importations of luxury cars.
If you have any luxury car tax adjustments that are attributable to a tax period applying to you, alter your net amount for the period as follows:
add to that net amount for the period the sum of all the *increasing luxury car tax adjustments (if any) that are attributable to the period;
subtract from that net amount the sum of all the *decreasing luxury car tax adjustments (if any) that are attributable to the period.
A luxury car tax adjustment must be made within 4 years after the supply or *importation to which the adjustment relates.
The luxury car tax payable by you on a taxable supply of a luxury car is attributable to the same tax period, or tax periods, applying to you as the tax period or tax periods to which:
if the supply is a taxable supply—the taxable supply is attributable; or
if the supply is not a taxable supply—the supply would be attributable if it were a taxable supply.
Note: For the basic rules on attribution of taxable supplies, see section 29-5 of the GST Act.
The luxury car tax payable by you on a taxable supply of a luxury car that is supplied by way of lease or hire is entirely attributable to the first tax period to which the supply of the car is attributable. This subsection has effect despite section 156-5 of the GST Act.
Note: Under that section, the luxury car tax could otherwise be payable on a periodic basis.
A luxury car tax adjustment that you have is attributable to the same tax period, or tax periods, applying to you as the tax period or tax periods to which:
if the luxury car tax adjustment is an adjustment—the adjustment is attributable; or
if the luxury car tax adjustment is not an adjustment—the luxury car tax adjustment would be attributable if it were an adjustment.
Note: For the basic rules on attribution of adjustments, see section 29-20 of the GST Act.
*Assessed luxury car tax on a taxable importation of a luxury car is to be paid by the importer to the Commonwealth:
at the same time, at the same place, and in the same manner, as customs duty is payable on the car in question (or would be payable if the car were subject to customs duty); or
in the circumstances specified in the regulations, within such further time specified in the regulations, and at the place and in the manner specified in the regulations.
Note 1: The regulations could (for example) allow for deferral of payments to coincide with payments of assessed net amounts.
Note 1A: For provisions about assessment of luxury car tax on taxable importations of luxury cars, see Taxation Administration Act 1953.Division 155 in Schedule 1 to the
Note 2: For provisions about collection and recovery of assessed luxury car tax on taxable importations of luxury cars, see Subdivision 105-C, and Taxation Administration Act 1953.Part 4-15, in Schedule 1 to the
(2) An officer of Customs (Customs Act 1901) may refuse to deliver the goods concerned unless the assessed luxury car tax has been paid.within the meaning of subsection 4(1) of the
An amount of *assessed luxury car tax on a taxable importation of a luxury car is not payable if:
(a) a security or undertaking described in Customs Act 1901 has been given; andsection 162 of the
the provisions of the regulations mentioned in paragraph 162(3)(a) of that Act are complied with; and
either:
the car is exported within the relevant period mentioned in paragraph 162(3)(b) of that Act; or
one or more of the circumstances or conditions specified in the regulations mentioned in paragraph 162(3)(b) of that Act apply in relation to the car.
Note: Section 162 of the Customs Act 1901 allows delivery of imported goods if the importer gives a security or undertaking to pay any customs duty, assessed GST and assessed luxury car tax relating to the importation.
An amount of *assessed luxury car tax on a taxable importation of a luxury car is not payable if:
(a) a security or undertaking described in Customs Act 1901 has been given; andsection 162A of the
the car is not dealt with in contravention of regulations made for the purposes of that section; and
one or more of the following applies:
the car is exported within the relevant period mentioned in paragraph 162A(5)(b) of that Act;
if the car is goods described in subsection 162A(5A) of that Act—the goods are exported before the end of the relevant day mentioned in paragraph 162A(5A)(b) of that Act;
one or more of the circumstances or conditions specified in the regulations mentioned in paragraph 162A(5)(b) of that Act apply in relation to the car.
Note: Section 162A of the Customs Act 1901 allows delivery of imported goods if the importer gives a security or undertaking to pay any customs duty, assessed GST and assessed luxury car tax relating to the importation.
This section has effect despite section 13-20.
GST Act applies to amounts payable under this Subdivision as if they were amounts payable under the GST Act.Division 165 of the
Circumstances that occur after the supply or importation of a car may mean that too much or too little luxury car tax was imposed. Accordingly, adjustments are made to increase or decrease the net amount. Adjustments can be made by the supplier, the recipient or the importer, depending upon the circumstances.
(1) A luxury car tax adjustment event is any event which has the effect of:
cancelling a supply of a luxury car; or
changing the consideration for the supply; or
causing the supply to become, or stop being, a taxable supply of a luxury car.
Without limiting subsection (1), these are luxury car tax adjustment events:
the return to a supplier of a car supplied (whether or not the return involves a change of ownership of the car);
a change to the previously agreed consideration for a supply of a car, whether due to the offer of a discount or otherwise.
A luxury car tax adjustment event can arise in relation to a supply of a car even if it is not a taxable supply of a luxury car.
However, the return of a luxury car to its supplier is not an adjustment event if the return is for the purpose of repair or maintenance.
You have a luxury car tax adjustment for a supply of a *luxury car for which you are liable to pay luxury car tax (or would be liable to pay luxury car tax if it were a *taxable supply of a luxury car) if:
in relation to the supply, one or more luxury car tax adjustment events occur during a tax period; and
luxury car tax on the supply was attributable to an earlier tax period (or, if the supply was not a taxable supply of a luxury car, would have been attributable to an earlier tax period had the supply been a taxable supply of a luxury car); and
(c) as a result of that adjustment event or those adjustment events, the *previously attributed luxury car tax amount for the supply no longer correctly reflects the amount of luxury car tax on the supply (the corrected luxury car tax amount), taking into account any luxury car tax adjustments for the supply.
The previously attributed luxury car tax amount for a supply of a *luxury car is:
the amount of any luxury car tax that was attributable to a tax period in respect of the supply; plus
the sum of any *increasing luxury car tax adjustments, under this Subdivision, that were previously attributable to a tax period in respect of the supply; minus
the sum of any *decreasing luxury car tax adjustments, under this Subdivision, that were previously attributable to a tax period in respect of the supply.
If the *corrected luxury car tax amount is greater than the *previously attributed luxury car tax amount, you have an increasing luxury car tax adjustment equal to the difference between the corrected luxury car tax amount and the previously attributed luxury car tax amount.
If the *corrected luxury car tax amount is less than the *previously attributed luxury car tax amount, you have a decreasing luxury car tax adjustment equal to the difference between the previously attributed luxury car tax amount and the corrected luxury car tax amount.
(1) You have a decreasing luxury car tax adjustment if:
you were supplied with a luxury car; and
luxury car tax was payable on the supply because you did not quote for the supply; and
you were registered at the time of the supply; and
you intend to use the car for a quotable purpose; and
you have only used the car for a quotable purpose.
(1A) You have a decreasing luxury car tax adjustment if:
you are supplied with a luxury car; and
luxury car tax is payable on the supply; and
you are registered at the time of the supply; and
were you to import the car for the same purpose as your purpose in acquiring it, luxury car tax would, because of paragraph 7-10(3)(ba), not be payable on the importation; and
you do not intend to use the car, or permit it to be used, other than for that purpose.
The decreasing luxury car tax adjustment is equal to the amount of luxury car tax that was payable on the supply.
(3) You have an increasing luxury car tax adjustment if:
you were supplied with a luxury car; and
either:
no luxury car tax was payable on the supply because you *quoted for the supply; or
you had a decreasing luxury car tax adjustment under subsection (1); and
you use the car for a purpose other than a quotable purpose.
(3A) You have an increasing luxury car tax adjustment if:
you were supplied with a luxury car; and
you had a decreasing luxury car tax adjustment under subsection (1A) in relation to the supply; and
either:
you use the car (or permit it to be used), and that use would have prevented a decreasing luxury car tax adjustment arising under that subsection if it had been your purpose in acquiring the car; or
you supply the car to another entity.
However, subparagraph (3A)(c)(ii) does not apply if luxury car tax would, because of paragraph 7-10(3)(ba), not have been payable if the other entity had instead *imported the car for the same purpose as its purpose in acquiring the car from you.
The increasing luxury car tax adjustment is equal to:
the amount of luxury car tax that the supplier of the car would have had to pay if you had not *quoted for the supply; or
the amount of the decreasing luxury car tax adjustment;
whichever is relevant.
(1) You have a decreasing luxury car tax adjustment if:
you *imported a luxury car; and
luxury car tax was payable on the importation because you did not quote for the importation; and
you were registered at the time of the importation; and
you intend to use the car for a quotable purpose; and
you have only used the car for a quotable purpose.
The decreasing luxury car tax adjustment is equal to the amount of luxury car tax that was payable on the importation.
(3) You have an increasing luxury car tax adjustment if
you *imported a luxury car; and
either:
no luxury car tax was payable on the importation because you *quoted for the importation; or
you had a decreasing luxury car tax adjustment under subsection (1); and
you used the car for a purpose other than a quotable purpose.
(3A) You have an increasing luxury car tax adjustment if:
you *imported a luxury car; and
no luxury car tax was payable on the importation because of paragraph 7-10(3)(ba); and
either:
you use the car (or permit it to be used), and that use would have prevented that paragraph applying if it had been your purpose in importing the car; or
you supply the car to another entity.
However, subparagraph (3A)(c)(ii) does not apply if luxury car tax would, because of paragraph 7-10(3)(ba), not have been payable if the other entity had instead *imported the car for the same purpose as its purpose in acquiring the car from you.
The increasing luxury car tax adjustment is equal to:
the amount of luxury car tax that you would have had to pay if you had not *quoted for the *importation; or
the amount of the decreasing luxury car tax adjustment; or
the amount of luxury car tax that you would have had to pay if paragraph 7-10(3)(ba) had not applied in relation to the importation;
whichever is relevant.
(1) You have a decreasing luxury car tax adjustment if:
you made a taxable supply of a luxury car; and
the whole or part of the consideration for the supply has not been received; and
you write off as bad the whole or a part of the debt, or the whole or a part of the debt has been *overdue for 12 months or more.
The decreasing luxury car tax adjustment is equal to:
the amount of luxury car tax that was payable by you on the supply taking into account any previous luxury car tax adjustments for the supply; minus
the amount of luxury car tax (if any) that would be payable if the *price of the supply of the car (disregarding any previous luxury car tax adjustments for the supply) was reduced by an amount equal to the sum of:
the amount or amounts of the debt written off as bad; and
the amount of the debt that has been *overdue for 12 months or more (other than amounts already written off).
You cannot have a luxury car tax adjustment under this section if you *account on a cash basis.
(1) You have an increasing luxury car tax adjustment if:
you made a taxable supply of a luxury car in relation to which you had a decreasing luxury car tax adjustment under section 15-40 for a debt; and
you recover the whole or a part of the amount or amounts of the debt that have been written off as bad or *overdue for 12 months or more.
The increasing luxury car tax adjustment is equal to:
the amount of luxury car tax (if any) that would be payable if the *price of the supply of the car (disregarding any previous luxury car tax adjustments for the supply) was reduced by the sum of:
the amount or amounts of the debt previously written off as bad; and
the amount of the debt that has been *overdue for 12 months or more (other than amounts already written off);
and then increased by an amount equal to the amount or amounts recovered; minus
the amount of luxury car tax (if any) payable on the supply of the luxury car, taking into account any previous luxury car tax adjustments for the supply.
The representative member of a GST group deals with all of the luxury car tax liabilities and entitlements of the group. The joint venture operator of a GST joint venture deals with the luxury car tax liabilities and entitlements arising from the operator’s dealings on behalf of the other participants in the joint venture.
Luxury car tax payable on a taxable supply of a luxury car, or a taxable importation of a luxury car, for which a *member of a GST group would (apart from this section) be liable:
is payable by the *representative member; and
is not payable by the member that would otherwise be liable (unless the member is the representative member).
However, if the member is not the *representative member of the GST group, this section only applies to luxury car tax payable on a taxable importation of a luxury car if the tax is payable at a time when luxury car tax on *taxable supplies of luxury cars is normally payable by the representative member.
This section has effect despite sections 5-5 and 7-5 (which are about liability for luxury car tax).
Any luxury car tax adjustment that a *member of a GST group has is to be treated as if:
that member did not have the adjustment (unless that member is the *representative member); and
the representative member had the adjustment.
This section has effect despite section 13-10 (which is about the effect of luxury car tax adjustments on net amounts).
Luxury car tax payable on a taxable supply of a luxury car, or a taxable importation of a luxury car, that the *joint venture operator of a GST joint venture makes, on behalf of another *participant in the joint venture, in the course of activities for which the joint venture was entered into:
is payable by the joint venture operator; and
is not payable by the other participant.
This section has effect despite sections 5-5 and 7-5 (which are about liability for luxury car tax).
Any luxury car tax adjustment relating to any supply or *importation that the *joint venture operator of a GST joint venture makes, on behalf of another *participant in the joint venture, in the course of activities for which the joint venture was entered into is to be treated as if:
the other participant did not have the adjustment; and
the joint venture operator had the adjustment.
This section has effect despite luxury car tax adjustments on net amounts).section 13-10 (which is about the effect of
The additional net amount relating to a GST joint venture in section 51-45 of the GST Act:
is increased by the amount of any luxury car tax on *taxable supplies of luxury cars for which the *joint venture operator is liable because of section 16-15; and
is increased or decreased (as the case requires) by the amount of any luxury car tax adjustments that are adjustments of the joint venture operator because of section 16-20.
You may, in some circumstances, be able to claim a credit for luxury car tax paid either by yourself or by the supplier of the luxury car. Credits are only available to people who are not entitled to an adjustment for the circumstance.
You are entitled to a credit if:
you have a credit entitlement under this section; and
you are not registered or required to be registered; and
no one else has made a valid claim for a credit in relation to the credit entitlement.
You have a credit entitlement if:
luxury car tax on a supply to you was overpaid (that is, the supplier paid an amount of luxury car tax that was not legally payable); and
you have *borne the overpaid luxury car tax.
You have a credit entitlement if you have *borne luxury car tax on a supply of a car for which you could have *quoted except that you were not registered at the time of the supply.
You have a credit entitlement if you have paid luxury car tax on the *importation of a luxury car for which you could have *quoted except that you were not registered at the time of the importation.
The amount of the credit is the amount of:
overpaid luxury car tax *borne by you; or
luxury car tax that would not have been payable by the supplier had you *quoted for the supply in question and that was borne by you; or
luxury car tax that you would not have paid had you quoted for the *importation in question;
but only to the extent that you have not *passed on that amount or have not already been credited in respect of that amount.
You must claim a credit within 4 years of becoming entitled to the credit.
A claim for a credit must be made in the approved form.
If the amount of a credit you claim exceeds the amount to which you are properly entitled under section 17-5, the excess is to be treated as if it were luxury car tax that became payable, and due for payment, by you at the time when the credit was paid or applied to you.
Note: The main effect of treating the amount as if it were luxury car tax is to apply the collection and recovery rules in Taxation Administration Act 1953, such as a liability to pay the general interest charge under section 105-80 in that Schedule.Part 3-10 in Schedule 1 to the
Refunds under this Division may be available to primary producers and tourism operators for the supply of certain cars.
You are entitled to a refund under this section if:
you have a refund entitlement under this section; and
you are registered; and
no one else has made a valid claim for a refund in relation to the refund entitlement.
You have a refund entitlement if:
you have *borne luxury car tax on the supply, or *importation, of a refund-eligible car (or you would have borne luxury car tax on the supply or importation if you had acquired the car directly rather than entering into a financing arrangement relating to the car); and
at the time of the supply or importation you are carrying on a primary production business.
The amount of the refund for a refund entitlement under subsection (2) is the lesser of:
the amount of the luxury car tax described in paragraph (2)(a); and
$10,000.
You cannot have a refund entitlement under subsection (2) for more than one car in a financial year.
You are entitled to a refund under this section if:
you have a refund entitlement under this section; and
you are registered; and
no one else has made a valid claim for a refund in relation to the refund entitlement.
You have a refund entitlement if:
you have *borne luxury car tax on the supply, or *importation, of a refund-eligible car (or you would have borne luxury car tax on the supply or importation if you had acquired the car directly rather than entering into a financing arrangement relating to the car); and
the Commissioner is satisfied that:
you will use the car solely for the purpose of carrying on a business; and
the principal purpose of the business is carrying tourists for *tourist activities.
The amount of the refund for a refund entitlement under subsection (2) is the lesser of:
the amount of the luxury car tax described in paragraph (2)(a); and
$10,000.
You must claim a refund within 4 years of becoming entitled to the refund.
A claim for a refund must be in the approved form.
If you are entitled to a refund under this Division and you have claimed the refund, the Commissioner must, on behalf of the Commonwealth, pay the amount of the refund to you.
The Commonwealth and *untaxable Commonwealth entities are not liable to pay luxury car tax payable under this Act. However, it is the Parliament’s intention that the Commonwealth and untaxable Commonwealth entities should:
be notionally liable to pay luxury car tax payable under this Act; and
notionally have luxury car tax adjustments arising under this Act.
The Finance Minister may give such written directions as are necessary or convenient for carrying out or giving effect to subsection (1) and, in particular, may give directions in relation to the transfer of money within an account, or between accounts, operated by the Commonwealth or an untaxable Commonwealth entity.
Directions under subsection (2) have effect, and must be complied with, despite any other Commonwealth law.
This section cancels the effect of a provision of another Act that would have the effect of exempting a person from liability to pay luxury car tax payable under this Act.
The cancellation does not apply if the provision of the other Act:
commences after this section commences; and
refers specifically to luxury car tax payable under this Act.
The Commissioner may enter into an agreement with you about calculating the luxury car tax values of particular supplies or *importations of *luxury cars.
So far as the agreement is inconsistent with this Act, the agreement prevails.
The Criminal Code applies to all offences against this Act.
The Governor-General may make regulations prescribing matters:
required or permitted by this Act to be prescribed; or
necessary or convenient to be prescribed for carrying out or giving effect to this Act.
These all form part of this Act:
the headings to the Parts, Divisions and Subdivisions of this Act;
*explanatory sections;
the headings to the sections and subsections of this Act;
the notes and examples (however described) that follow provisions of this Act.
The asterisks used to identify defined terms form part of this Act. However, if a term is not identified by an asterisk, disregard that fact in deciding whether or not to apply to that term a definition or other interpretation provision.
Footnotes and endnotes do not form part of this Act.
(1) An explanatory section is:
any section that is the first section in a Division and that has as its heading “What this Division is about”; or
any section in Divisions 2, 3 and 4.
Explanatory sections form part of this Act, but they are not operative provisions. In interpreting an operative provision, an explanatory section may only be considered:
in determining the purpose or object underlying the provision; or
to confirm that the provision’s meaning is the ordinary meaning conveyed by its text, taking into account its context in this Act and the purpose or object underlying the provision; or
in determining the provision’s meaning if the provision is ambiguous or obscure; or
in determining the provision’s meaning if the ordinary meaning conveyed by its text, taking into account its context in this Act and the purpose or object underlying the provision, leads to a result that is manifestly absurd or is unreasonable.
(1) A luxury car is a *car whose *luxury car tax value exceeds the *luxury car tax threshold.
However, a car is not a luxury car if it is:
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
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
a commercial vehicle that is not designed for the principal purpose of carrying passengers; or
a motor home or campervan.
Luxury car tax threshold—general
(3) Subject to subsection (4), the luxury car tax threshold is:
$80,567 if the supply of the car occurs, or the car is *entered for home consumption, in the 2024-25 financial year; or
if that supply, or entry for home consumption, is in a later financial year—the amount worked out for that financial year after indexing $80,567 annually using Subdivision 960-M of the ITAA 1997.
Luxury car tax threshold—fuel efficient cars
(4) If the *car has a fuel consumption not exceeding 3.5 litres per 100 kilometres as a combined rating under national road vehicle standards in force under 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.section 12 of the
(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.
Indexation
In indexing the luxury car tax threshold or fuel-efficient car limit, Subdivision 960-M of the ITAA 1997 applies as if:
the table in section 960-265 of that Act included an item referring to (as the case may be):
the luxury car tax threshold and subsection (3) of this section; or
the fuel-efficient car limit and subsection (5) of this section; and
the reference in subsection 960-270(1) of that Act to provisions of that Act included a reference to subsection (3) or (5) of this section (as the case may be); and
the reference in subsection 960-280(2) of that Act to the car limit included a reference to the luxury car tax threshold or fuel-efficient car limit (as the case may be).
In this Act, unless the contrary intention appears:
ABN has the meaning given by section 41 of the A New Tax System (Australian Business Number) Act 1999.
account on a cash basis: you account on a cash basis while a choice you make under section 29-40 of the *GST Act, or a permission of the *Commissioner under section 29-45 of the *GST Act in relation to you, has effect.
adjustment has the meaning given by section 195-1 of the*GST Act.
approved form has the meaning given by section 995-1 of the *ITAA 1997.
assessed luxury car tax, on a *taxable importation of a luxury car, means the luxury car tax *assessed on the taxable importation.
assessment has the meaning given by the *ITAA 1997.
associate has the meaning given by section 318 of the *ITAA 1936.
Australian fee or charge has the meaning given by section 195-1 of the *GST Act.
Australian tax has the meaning given by section 195-1 of the *GST Act.
borne: you have borne luxury car tax on the supply of a *car if the *consideration that you provided for the supply included the tax.
car means a *motor vehicle (except a motor cycle or similar vehicle) that is: designed to carry a load of less than 2 tonnes and fewer than 9 passengers; or a limousine (regardless of the number of passengers it is designed to carry).
designed to carry a load of less than 2 tonnes and fewer than 9 passengers; or
a limousine (regardless of the number of passengers it is designed to carry).
car parts has the meaning given by section 195-1 of the*GST Act.
carrying on an *enterprise includes doing anything in the course of the commencement or termination of the enterprise.
Commissioner means the Commissioner of Taxation.
connected with the indirect tax zone, in relation to a supply, has the meaning given by section 195-1 of the *GST Act.
consideration has the meaning given by section 195-1 of the *GST Act.
corrected luxury car tax amount has the meaning given by paragraph 15-10(c).
customs duty means any duty of customs imposed by that name under a law of the Commonwealth, other than: (a) the A New Tax System (Goods and Services Tax Imposition—Customs) Act 1999; or (aa) the A New Tax System (Goods and Services Tax Imposition (Recipients)—Customs) Act 2005; or (b) the A New Tax System (Luxury Car Tax Imposition—Customs) Act 1999.
(a) the A New Tax System (Goods and Services Tax Imposition—Customs) Act 1999; or
(aa) the A New Tax System (Goods and Services Tax Imposition (Recipients)—Customs) Act 2005; or
(b) the A New Tax System (Luxury Car Tax Imposition—Customs) Act 1999.
Customs Tariff means the Customs Tariff Act 1995 as amended by any Act, and as proposed to be amended by Customs Tariff Proposals introduced into the House of Representatives.
decreasing luxury car tax adjustment has the meaning given by sections 15-25, 15-30, 15-35 and 15-40.
disabled person means a person described in: paragraphs 38-505(1)(a) and (b) of the GST Act (disabled veteran); or paragraph 38-510(1)(a) of the GST Act (person with a certificate of medical eligibility).
paragraphs 38-505(1)(a) and (b) of the GST Act (disabled veteran); or
paragraph 38-510(1)(a) of the GST Act (person with a certificate of medical eligibility).
end supply of a *car means a supply of a car to a *recipient who is not entitled to *quote in relation to that supply.
enter for home consumption has the same meaning as in the Customs Act 1901.
enterprise has the meaning given by section 9-20 of the *GST Act.
entity has the meaning given by section 184-1 of the*GST Act.
explanatory section has the meaning given by section 23-10.
Finance Minister means the Minister administering the Public Governance, Performance and Accountability Act 2013.
financial year has the meaning given by section 995-1 of the *ITAA 1997.
fuel-efficient car limit has the meaning given by subsection 25-1(5).
GST has the meaning given by section 195-1 of the *GST Act.
GST Act means the A New Tax System (Goods and Services Tax) Act 1999.
GST-free: a supply is GST-free if it is GST-free under Division 38 of the *GST Act.
GST group has the meaning given by section 48-5 of the *GST Act.
GST inclusive market value has the meaning given by section 195-1 of the *GST Act.
GST joint venture has the meaning given by section 51-5 of the *GST Act.
import means import goods into the indirect tax zone.
increasing luxury car tax adjustment has the meaning given by sections 15-20, 15-30, 15-35 and 15-45.
indirect tax zone has the meaning given by section 195-1 of the *GST Act.
international transport of a *car and any *car parts, accessories or attachments covered by subsection 7-10(2) has the meaning given by section 195-1 of the *GST Act.
ITAA 1936 means the Income Tax Assessment Act 1936.
ITAA 1997 means the Income Tax Assessment Act 1997.
joint venture operator, for a *GST joint venture, has the meaning given by section 195-1 of the *GST Act.
luxury car has the meaning given by section 25-1.
luxury car tax means tax that is payable under the *luxury car tax law and imposed as luxury car tax by any of these: (a) the A New Tax System (Luxury Car Tax Imposition—General) Act 1999; or (b) the A New Tax System (Luxury Car Tax Imposition—Customs) Act 1999; or (c) the A New Tax System (Luxury Car Tax Imposition—Excise) Act 1999.
(a) the A New Tax System (Luxury Car Tax Imposition—General) Act 1999; or
(b) the A New Tax System (Luxury Car Tax Imposition—Customs) Act 1999; or
(c) the A New Tax System (Luxury Car Tax Imposition—Excise) Act 1999.
luxury car tax adjustment means an *increasing luxury car tax adjustment or a *decreasing luxury car tax adjustment.
luxury car tax adjustment event has the meaning given by section 15-5.
luxury car tax law means:
Note: Luxury car tax adjustments are provided for in Division 15.
this Act; and
any Act that imposes luxury car tax; and
(c) the A New Tax System (Wine Equalisation Tax and Luxury Car Tax Transition) Act 1999; and
(d) the Taxation Administration Act 1953, so far as it relates to any Act covered by paragraphs (a) to (c); and
any other Act, so far as it relates to any Act covered by paragraphs (a) to (d) (or to so much of that Act as is covered); and
regulations under any Act, so far as they relate to any Act covered by paragraphs (a) to (e) (or to so much of that Act as is covered).
luxury car tax threshold has the meaning given by subsection 25-1(3) or (4).
luxury car tax value, of a *car, means:
in relation to the supply of the car—the value given by section 5-20; or
in relation to the *importation of the car—the value given by section 7-15.
member, in relation to a *GST group, has the meaning given by section 195-1 of the *GST Act.
money has the meaning given by section 195-1 of the *GST Act.
more than 2 years old has the meaning given by subsection 5-10(3).
motor vehicle means a motor-powered road vehicle (including a 4 wheel drive vehicle).
net amount has the meaning given by section 195-1 of the *GST Act.
non-taxable re-importation has the meaning given by section 7-20.
officer has the meaning given by the Corporations Act 2001.
overdue: a debt is overdue if there has been a failure to discharge the debt, and that failure is a breach of the debtor’s obligations in relation to the debt.
participant, in relation to a *GST joint venture, has the meaning given by section 195-1 of the *GST Act.
passed on, in relation to an amount of tax that has been borne by an entity, does not include an amount that the entity has passed on to another entity, but has later refunded to that other entity.
place of consignment of a *car and any *car parts, accessories or attachments covered by subsection 7-10(2) has the meaning given by section 195-1 of the *GST Act.
previously attributed luxury car tax amount has the meaning given in section 15-15.
price, in relation to a supply, has the meaning given by section 9-75 of the *GST Act.
primary production business has the meaning given by section 995-1 of the *ITAA 1997.
quotable purpose means a use of a *car for which you may *quote under section 9-5.
quote means quote an *ABN.
recipient means the *entity to which the supply was made.
refund-eligible car means a 4 wheel drive, or all wheel drive, *car of a kind specified in regulations made for the purposes of this definition.
registered means registered under Part 2-5 of the *GST Act.
representative member, for a *GST group, has the meaning given by section 195-1 of the *GST Act.
required to be registered has the meaning given by section 195-1 of the *GST Act.
research and development means systematic, investigative and experimental activities that involve innovation or high levels of technical risk and are carried on for the purpose of: acquiring new knowledge (whether or not that knowledge will have a specific practical application); or creating new or improved materials, products, devices or processes.
acquiring new knowledge (whether or not that knowledge will have a specific practical application); or
creating new or improved materials, products, devices or processes.
supply has the meaning given by section 9-10 of the *GST Act.
taxable importation of a luxury car has the meaning given by section 7-10.
taxable supply has the meaning given by section 195-1 of the *GST Act.
taxable supply of a luxury car has the meaning given by section 5-10.
tax period has the meaning given by section 195-1 of the *GST Act.
tourist activity has the meaning set out in regulations made for the purposes of this definition.
untaxable Commonwealth entity has the meaning given by section 177-1 of the *GST Act.
you: if a provision of this Act uses the expression you, it applies to entities generally, unless its application is expressly limited.
Endnotes
Endnote 1—About the endnotes
The endnotes provide information about this compilation and the compiled law.
The following endnotes are included in every compilation:
Endnote 1—About the endnotes
Endnote 2—Abbreviation key
Endnote 3—Legislation history
Endnote 4—Amendment history
Abbreviation key— E ndnote 2
The abbreviation key sets out abbreviations that may be used in the endnotes.
Legislation history and amendment history— E ndnotes 3 and 4
Amending laws are annotated in the legislation history and amendment history.
The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.
The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.
Editorial changes
The Legislation Act 2003 authorises First Parliamentary Counsel to make editorial and presentational changes to a compiled law in preparing a compilation of the law for registration. The changes must not change the effect of the law. Editorial changes take effect from the compilation registration date.
If the compilation includes editorial changes, the endnotes include a brief outline of the changes in general terms. Full details of any changes can be obtained from the Office of Parliamentary Counsel.
Misdescribed amendments
A misdescribed amendment is an amendment that does not accurately describe how an amendment is to be made. If, despite the misdescription, the amendment can be given effect as intended, then the misdescribed amendment can be incorporated through an editorial change made under Legislation Act 2003.section 15V of the
If a misdescribed amendment cannot be given effect as intended, the amendment is not incorporated and “(md not incorp)” is added to the amendment history.
Endnote 2—Abbreviation key
Note: The expression you is not used in provisions that apply only to entities that are not individuals.
Endnote 3—Legislation history
Endnote 4—Amendment history