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ATO to close Luxury Car Tax loophole
The Australian Taxation Office is continuing to look into a loophole linked to the Luxury Car Tax (LCT).
Earlier this month it was revealed that if licensed motor car traders (LMCTs) own a car for more than two years before it is sold for the first time then no LCT is due.
The LCT adds 33 per cent to every dollar spent above $57,180.
The threshold is raised to $75,000 for ‘fuel efficient’ cars – those that have a combined fuel consumption rating not exceeding 7.0 litres/100km combined.
LMCT holders can also avoid paying stamp duty on their new cars, and naturally the savings increase with the prices.
For example, a $64,340 Citroen C5 2.7 HDi Exclusive cops $2150 LCT taking it to an RRP of $66,490.
Stamp duty ranges from $2327.15 to $4321.85 depending on which state it is purchased in.
Something a little more luxurious, like a $216,100 Jaguar XKR Convertible, pushes the LCT out to around $47,500 and stamp duty to as much as $17,121.
And a $680,000 Lamborghini Murciélago LP640 Roadster E-gear gets a whopping $131,000 piled on in total.
Although it probably won’t bother you in the slightest if can afford the best part of one million clams for a Lambo anyway.
by Tim Beissmann
Video: ‘Top Gear Australia’ first preview and release date
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Video: ‘Top Gear Australia’ first preview and release date
