Per the current legislation, most primary producers and tourism operators can claim refunds of 8/33 of the LCT they have paid, up to a maximum of $3,000. This figure (8/33) is the difference between the current LCT rate of 33% and the previous LCT rate of 25%.
These refunds may also apply to imported luxury cars when the LCT has been paid.
Primary producers can claim a refund for only one eligible car purchased or leased in a financial year.
For LCT purposes, a primary producer is an individual, partnership, trust or company carrying on a primary production business, including:
- plant or animal cultivation
- fishing or pearling
- tree farming or felling.
With the current year’s Luxury Car Tax threshold at $66,331, vehicles with retail prices (including GST) above this are entitled to a refund. Between $66,331 and $119,956, the refund is 8/33rds (roughly 25%) of the tax paid whilst vehicles above $119,956 are entitled to a capped refund of $3,000.
The conditions are:
- The vehicle must be an all-wheel drive or 4-wheel drive vehicle; and
- Have a ground clearance of 175mm or greater.
The refund must be claimed within four years of the purchase date so it is worth reviewing the books for vehicles bought in the last four years. An ATO Form, NAT 72601, simply needs to be submitted to the ATO to claim the refund.
Announced as a budget 2019 measure the maximum refund will be increased to $10,000 in respect of vehicles acquired from 1 July 2019 (subject to legislation being passed).