1 November 2025

Luxury Car Tax Refunds for Primary Producers: a $10,000 Opportunity

Why LCT still matters to regional businesses 

 Australia’s Luxury Car Tax (LCT) can add thousands to the price of common passenger cars. If you’re a primary producer registered for GST, you may be entitled to a refund of up to $10,000 on one eligible vehicle per financial year, yet many agribusinesses still don’t claim it. The Australian Taxation Office (ATO) confirms eligibility, caps and timing, and that claims must be made within four years of purchase.   

 “It’s not uncommon to meet with a new agribusiness client and find they’ve never heard of the LCT refund, even after generations in the industry,” says Troy Anderson, Partner at Thorntons Accountants & Business Advisors.  

 Who qualifies — and for what 

 Eligible vehicles must be 4WD or AWD and either: 

  • a passenger car with ground clearance ≥ 175 mm, or 
  • an off-road commercial vehicle meeting specific criteria.   

 Troy notes: “The fundamentals are simple. If you’re carrying on a bona fide primary production business and you’ve bought an eligible vehicle in your trading entity, you should explore the refund.” 

 Timing, thresholds and rate: the mechanics behind the refund 

 Refunds are not claimed via your BAS; you must lodge the Application for luxury car tax refund – for primary producers and tourism operators with the ATO (electronic form) and claims must be made within four years of purchase.  

 “We typically lodge the application for clients,” Troy says. “It’s not onerous. The bigger risk is simply not knowing to claim.” 

About Thorntons 

 Thorntons Accountants & Business Advisors serves family-owned and multi-generational agribusiness and fishing enterprises across regional Western Australia, providing tax, structuring, asset protection, estate planning and transaction support grounded in decades of on-farm and on-water experience. 

 Bought an eligible vehicle in the last four years? Thorntons can review your structure and documentation and, where appropriate, prepare and lodge your LCT refund claim. Contact us for a fast eligibility check and a broader vehicle tax strategy.