Luxury Car Tax Refunds

Are you a primary producer or tourist operator?

At a glance: The Australian Taxation Office has announced that most primary producers and tourist operators can claim refunds of the increase in Luxury Car Tax (LCT) on eligible cars.

You should consider whether you are eligible to claim the LCT refund or contact us if you require any clarification or advice.

The Luxury Car Tax (LCT) is a levy imposed on vehicles with a GST inclusive price exceeding the car depreciation limit.

For the 2008/09 financial year, the car depreciation limit is $57,180.

The LCT for the 2008/09 financial year is 33%, up from 25% in the 2007/08 financial year [Click here for more information].

From July 1, 2008 most primary producers and tourist operators will be able to claim refunds relating to the increase in LTC on certain luxury cars.

The maximum claimable refunds are as follows: a. Primary producers can claim a refund of up to $3,000 for one eligible car in a financial year; and b. Tourism operators can claim a refund of up to $3,000 for each eligible car in a financial year.

Eligible taxpayers can claim the LCT refund by completing the form Application for luxury car tax refund - for primary producers and tourism operators.

For more information on the LCT refund, click here and visit the ATO website at http://www.ato.gov.au.

Remember to check if you are eligible to claim refunds of the increase in Luxury Car Tax.