{"id":884,"date":"2019-12-06T10:36:57","date_gmt":"2019-12-06T00:06:57","guid":{"rendered":"http:\/\/whitford.com.au\/?p=884"},"modified":"2022-11-29T17:44:32","modified_gmt":"2022-11-29T07:14:32","slug":"luxury-car-tax-refunds-for-primary-producers","status":"publish","type":"post","link":"https:\/\/whitford.com.au\/index.php\/2019\/12\/06\/luxury-car-tax-refunds-for-primary-producers\/","title":{"rendered":"Luxury Car Tax refunds for Primary Producers"},"content":{"rendered":"<div class=\"c5-top-article clearfix\">\n<header class=\"c5-padding clearfix\">\n<h1 class=\"entry-title\">Changes to the luxury car tax your clients may have forgotten<\/h1>\n<div class=\"mid_ac\">\n<ul class=\"c5_meta_data  clearfix\">\n<li class=\"c5-meta-li-category clearfix\"><a class=\"c5-meta-cat category-253\" href=\"https:\/\/taxandsupernewsroom.com.au\/category\/tax\/\">Tax<\/a><\/li>\n<li class=\"c5-meta-li-time clearfix\"><time class=\"value updated\" datetime=\"2019-12-02\">2 December, 2019, 4 days ago<\/time><\/li>\n<\/ul>\n<div class=\"print_me\"><\/div>\n<\/div>\n<\/header>\n<\/div>\n<div class=\"clearfix\"><\/div>\n<div class=\"c5-featured-media-warp clearfix\"><img loading=\"lazy\" class=\"attachment-custom_image_size_crop_1170x658 size-custom_image_size_crop_1170x658 wp-post-image\" src=\"https:\/\/taxandsupernewsroom.com.au\/wp-content\/uploads\/2018\/02\/DudeCarHome.jpg\" sizes=\"(max-width: 767px) 100vw, 767px\" srcset=\"https:\/\/taxandsupernewsroom.com.au\/wp-content\/uploads\/2018\/02\/DudeCarHome.jpg 767w, https:\/\/taxandsupernewsroom.com.au\/wp-content\/uploads\/2018\/02\/DudeCarHome-600x400.jpg 600w\" alt=\"What your client needs to know about the luxury car tax\" width=\"767\" height=\"511\" \/><\/div>\n<div class=\"c5-padding clearfix\">\n<div class=\"clearfix\"><\/div>\n<div class=\"mid_area\">\n<p>From 1\u00a0January 2020, primary producers can claim a refund of luxury car tax (LCT) they have paid on one eligible vehicle per financial year, up to a maximum of $10,000 (it used to be $3,000), for vehicles delivered to them on or after 1\u00a0July 2019.<\/p>\n<p>If your client lodged a claim for an eligible vehicle delivered on or after 1\u00a0July 2019, they won\u2019t need to make another claim to receive the increased refund amount.<\/p>\n<p>From 1\u00a0January 2020 when the law comes into effect, the ATO should adjust your client\u2019s refund based on the amount they have already received.<\/p>\n<p>If an eligible vehicle was delivered to a primary producer on or before 30\u00a0June 2019, they can only claim a refund of 8\/33 of the LCT they have paid, up to a maximum of $3,000. This factor (eight thirty-thirds) represents the difference between the current LCT rate of 33% and the previous 25% rate.<\/p>\n<p><strong><span class=\"tadv-color\">Credits and refunds<\/span><\/strong><br \/>\nCredits for luxury car tax (LCT) can only be claimed if your client is not registered for goods and services tax (GST). A refund may be available if they\u2019re a primary producer or tourism operator who buys luxury vehicles.<\/p>\n<p><strong><span class=\"tadv-color\">Credits<\/span><\/strong><br \/>\nIf your client is not registered for GST, and therefore can\u2019t make an LCT adjustment on a business activity statement (BAS), they may however be entitled to a credit for LCT paid if:<\/p>\n<ul>\n<li>they overpaid LCT on a sale \u2013 that is, the supplier paid an amount of LCT that was not legally payable and your client settled on that overpaid LCT<\/li>\n<li>they\u2019ve paid LCT on a sale, or paid LCT on an importation, where they could have quoted but were unable to quote because they were unregistered at the time of supply or importation<\/li>\n<li>they\u2019ve exported a luxury car (on which LCT has been paid) that is a GST-free export.<\/li>\n<\/ul>\n<p>Your client is entitled to a credit only if no-one else has made a valid claim for a credit in relation to the credit entitlement. Note this claim for a credit must be made within four years of becoming entitled to the credit.<\/p>\n<p><strong><span class=\"tadv-color\">Claiming a credit for LCT<\/span><\/strong><br \/>\nTo claim a credit for overpayment of LCT:<\/p>\n<ul>\n<li>on a sale, your client must use the approved\u00a0<a href=\"https:\/\/www.ato.gov.au\/Forms\/Luxury-car-tax-credit---entities-not-registered-for-GST\/\" target=\"_blank\" rel=\"noreferrer noopener\">Application for luxury car tax credit \u2013 entities not registered for GST form<\/a>, and lodge it within four years of becoming entitled to the credit<\/li>\n<li>on a GST-free export, they must make a claim to the Australian supplier.<\/li>\n<\/ul>\n<p><strong><span class=\"tadv-color\">Refunds<\/span><\/strong><br \/>\n<a href=\"https:\/\/www.ato.gov.au\/Business\/Luxury-car-tax\/Adjustments,-credits-and-refunds\/Credits-and-refunds\/#Primaryproducers\" target=\"_blank\" rel=\"noreferrer noopener\">Primary producers<\/a>\u00a0and\u00a0<a href=\"https:\/\/www.ato.gov.au\/Business\/Luxury-car-tax\/Adjustments,-credits-and-refunds\/Credits-and-refunds\/#Primary_producers\" target=\"_blank\" rel=\"noreferrer noopener\">tourism operators<\/a>\u00a0can claim a refund of the LCT they have paid on eligible vehicles they have purchased or leased in a financial year.<\/p>\n<p>An eligible vehicle is a four wheel drive, or all-wheel drive, and is either:<\/p>\n<ul>\n<li>a \u201cpassenger car\u201d with a ground clearance of at least 175mm<\/li>\n<li>an \u201coff road passenger\u201d vehicle.<\/li>\n<\/ul>\n<p><strong><span class=\"tadv-color\">Primary producers<\/span><\/strong><br \/>\nAs mentioned, from 1\u00a0January 2020 primary producers can claim a refund of LCT they have paid\u00a0<em>on one<\/em>\u00a0(our emphasis, see below) eligible vehicleper financial year, up to a maximum of $10,000, for vehicles delivered to them on or after 1\u00a0July 2019.<\/p>\n<p>For LCT purposes, a primary producer is an individual, partnership, trust or company carrying on a primary production business, including:<\/p>\n<ul>\n<li>plant or animal cultivation<\/li>\n<li>fishing or pearling<\/li>\n<li>tree farming or felling.<\/li>\n<\/ul>\n<p>If an eligible vehicle was delivered to a primary producer on or before 30\u00a0June 2019, they can only claim a refund of 8\/33 of the LCT they have paid, up to a maximum of $3,000.<\/p>\n<p><strong><span class=\"tadv-color\">Tourism operators<\/span><\/strong><br \/>\nFrom 1\u00a0January 2020 tourism operators can claim a refund of LCT they have paid\u00a0<em>for each<\/em>\u00a0(our emphasis) eligible vehicle, up to a maximum of $10,000, delivered to them on or after<br \/>\n1 July 2019.<\/p>\n<p>For LCT purposes, a taxpayer is a tourism operator if both the following apply:<\/p>\n<ul>\n<li>they use the car solely for the purpose of carrying on a business<\/li>\n<li>the principal purpose of their business is carrying tourists for tourism activities.<\/li>\n<\/ul>\n<p>Tourism activities must be both leisure activities and of a touring nature.<\/p>\n<p>A leisure activity includes activities involving a visit by a tourist to a site that has one of the following:<\/p>\n<ul>\n<li>scenic beauty<\/li>\n<li>cultural interest<\/li>\n<li>environmental interest<\/li>\n<li>historical interest<\/li>\n<li>recreational interest.<\/li>\n<\/ul>\n<p>Carrying tourists for tourism activities does not include transporting passengers by either:<\/p>\n<ul>\n<li>taxi or limousine for fares<\/li>\n<li>a hire-car service.<\/li>\n<\/ul>\n<p>If an eligible vehicle was delivered to a tourism operator on or before 30\u00a0June 2019, they can only claim a refund of 8\/33 of the LCT they have paid, up to a maximum of $3,000.<\/p>\n<p><strong><span class=\"tadv-color\">Claiming the refund<\/span><\/strong><br \/>\nYour client can claim a refund on the\u00a0<a href=\"https:\/\/www.ato.gov.au\/Forms\/Luxury-car-tax-refund---for-primary-producers---tourism-operators\/\" target=\"_blank\" rel=\"noreferrer noopener\">Application for luxury car tax refund \u2013 for primary producers and tourism operators<\/a>\u00a0form. This refund must be claimed within four years of becoming entitled to it.<\/p>\n<p>If your client has lodged a claim for an eligible vehicle delivered on or after 1\u00a0July 2019, they won\u2019t need to make another claim to receive the increased refund amount.<\/p>\n<p>From 1\u00a0January 2020 when the law comes into effect, the ATO will adjust their refund based on the amount they have already received. Note that they can\u2019t claim these refunds on their BAS or from the Department of Home Affairs.<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Changes to the luxury car tax your clients may have forgotten Tax 2 December, 2019, 4 days ago From 1\u00a0January 2020, primary producers can claim a refund of luxury car tax (LCT) they have paid on one eligible vehicle per financial year, up to a maximum of $10,000 (it used to be $3,000), for vehicles&hellip;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/whitford.com.au\/index.php\/wp-json\/wp\/v2\/posts\/884"}],"collection":[{"href":"https:\/\/whitford.com.au\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/whitford.com.au\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/whitford.com.au\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/whitford.com.au\/index.php\/wp-json\/wp\/v2\/comments?post=884"}],"version-history":[{"count":1,"href":"https:\/\/whitford.com.au\/index.php\/wp-json\/wp\/v2\/posts\/884\/revisions"}],"predecessor-version":[{"id":885,"href":"https:\/\/whitford.com.au\/index.php\/wp-json\/wp\/v2\/posts\/884\/revisions\/885"}],"wp:attachment":[{"href":"https:\/\/whitford.com.au\/index.php\/wp-json\/wp\/v2\/media?parent=884"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/whitford.com.au\/index.php\/wp-json\/wp\/v2\/categories?post=884"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/whitford.com.au\/index.php\/wp-json\/wp\/v2\/tags?post=884"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}