Luxury Car Tax Question....

[Wilesy]

Morning all,

I really need to know this info, so I have a quick question for you budding accountants out there, as I am looking around for a new car, and my accountant doesn't work on weekends >:( so I thought I would ask you knowledgeable folk.

I can't find a thing on the net about this question, it only talks about what dealers have to pay.

This is the first time I am buying a luxury car since the Luxury car tax law and GST was introduced in 2000, so I have no idea about the cost involved.

I am aware that over the price of $56,000 you have to pay 25% luxury car tax.

Now, I know that GST is included in the sticker price of new cars, but does the price include Luxury car tax as well.

In other words, if I buy a car with a sticker price of say $100,000 drive away, does that figure include the luxury car tax, or do I fork out an extra $11,250 on my BAS Statement ?

No-one seems to talk about it, and if that's the case, the price of a new car is a lot more than I thought, and if that's right, I will have to re-assess what I spend as that $11,250 is a lot of money >:(

I suppose it effects many new 4x4 buyers as they are nearly all over $56,000

Thanks 8)

[WTSHNN]

Total purchase price includes GST and luxury car tax. The figure of $56,000 is before GST. You cannot claim back any GST or depreciation above this figure.

Do not buy any accessories as part of the new car deal above $56,000 as you will pay an extra 25% for them!

[Wilesy]

Cool,

Thanks for that 8)

In other words, if I buy a car with a sticker price of say $100,000 drive away, does that figure include the luxury car tax, or do I fork out an extra $11,250 on my BAS Statement ?



good to see you do a "Business Activity Statement Statement" Wilsey ;) i suppose you get your cash from the Automatic Teller Machine Machine (ATM Machine) hehehe i love the way people say that!!

[Grimsey]

the way i understand it is that the sticker price on the car is before the on road costs. so if the price of the car comes in under 56000 with the stamp duty and gst you do not have to pay LCT.

[Wilesy]

Unfortunately for me, everything I like and look at is way over that figure >:(

[GQANDGU]

Unfortunately for me, everything I like and look at is way over that figure >:(

Wilsey - I'll send you a PM on luxury tax & accessories.

[haycait]

My brother got a new prado a few yrs ago and left the bullbar, towbar, window tinting, Bla Bla Bla,,, to be fitted @ the first service. Therefore leaving the price below LCT levels.

I guess this would work for the amount of LCT you have to pay. e.g.

Leave off additional accessories till later and reduce the on road price and the amount of tax payable.

It's a great sport isn't it.......tax minimisation, trying to screw the tax man before he does you 8)