Luxury Car Tax Refunds 

Refunds for Tourism Operators and Farmers

What is the Luxury Car Tax?

Luxury car tax applies where the GST-inclusive price of a motor vehicle exceeds a certain threshold. The threshold for the 2023/24 income years is currently $89,332 for fuel-efficient cars and $76,950 for all other vehicles. From 1 July 2024 these will be $91,387 and $80,567.


Generally, the tax is calculated at a rate of 33% for the amount over the threshold.

Eligibility

Tourism Operators and Farmers (primary producers) are eligible for a partial refund of the luxury car tax they pay on the purchase of a suitable four-wheel and all-wheel drive cars. This refund is up to a maximum of $10,000.

Eligibility Criteria

Tourism Operators

  • Carrying on a tourism business, with the principle purpose of business to carry tourists for tourist activities,
  • The car must be used for the purpose of carrying on business,
  • Register for GST,
  • The car purchase must be a four-wheel drive or all-wheel drive, AND either:
  • a passenger car (having up to 9 seating positions) and has a ground clearance of not less than 175mm, or
  • an off-road passenger vehicle (having up to 9 seating positions and being designed with special features for off-road operation).


Tourism operators can claim a refund for all eligible cars. Therefore, multiple claims can be made each year.

Farmers

  • Carry on a primary production business,
  • Registered for GST,
  • The car purchased must be a four-wheel drive or all-wheel drive, AND either:
  • a passenger car (having up to 9 seating positions) and has a ground clearance of not less than 175mm, or
  • an off-road passenger vehicle (having up to 9 seating positions and being designed with special features for off-road operation).


Primary producers can only claim one refund per financial year, and the refund claim must be within four years of purchase.

NOTE: the refund applies even if the car is purchased through a financing arrangement.

Refund Calculation

The refund is calculated as the lessor of:

  • 8/33 of the Luxury Car Tax Charged for the vehicle, and
  • $10,000

How can Brentnalls SA help?

If you have any questions, please contact Brentnalls SA and ask to speak to one of our advisors. Helping businesses achieve their goals is our passion and our strength is in our dedicated professional team. Brentnalls SA provide services in the Agribusiness industry.

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Discuss Further?

If you would like to discuss this, please get in touch.

Disclaimer
The information provided in this information sheet does not constitute advice. The information is of a general nature only and does not take into account your individual situation. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you contact Brentnalls SA before making any decision to discuss your particular requirements or circumstances.

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