The ATO has announced that it has identified some common errors regarding the luxury car tax (LCT) claims, but also says there are issues it has identified with LCT that are more associated with actively initiated non-compliance. Common errorsSome common errors the ATO has identified when taxpayers report or claim LCT include: using an incorrect
From 1 January 2020, primary producers can claim a refund of luxury car tax (LCT) they have paid on one eligible vehicle per financial year, up to a maximum of $10,000 (it used to be $3,000), for vehicles delivered to them on or after 1 July 2019. If your client lodged a claim for an eligible vehicle
According to the government, a vehicle is a “luxury” if it costs more than $66,331 (for 2018-19) or $75.526 (for “fuel-efficient” cars). It was $65,094 for 2017-18, with the same fuel-efficient price level. The target to be rated fuel-efficient by the way is for the vehicle to use less than seven litres of fuel
You can judge whether a car is luxury or not, according to the government, if it costs more than $65,094 for 2017-18 (and $75.526 for “fuel-efficient” cars). It was $64,132 for 2016-17 (with unchanged fuel-efficient option). It’s not an over-the-top price tag if you’re considering true “luxury”, but it’s enough to cop an extra tax.