Private ruling: LCT and importation of a luxury vehicle
Date of advice: 29 June 2015
Published: June 2015

Ruling: Q1: Is the car not subject to the luxury car tax if is not registered for road use? | A1: Whether or not the car is not registered for road use it is still subject to the luxury car tax.

Relevant facts and circumstances: You have decided not to register the car for road use.

Relevant legislative provisions: A New Tax System (Luxury Car Tax) Act 1999 - sections 7-5 & 7-10.

Reasons for decision: Summary: It was formerly decided that the importation of the car was a taxable importation for the purposes of the A New Tax System (Luxury Car Tax) Act 1999 (LCT Act) and therefore subject to luxury car tax. You have informed us that as you have now decided not to register the car for road use and therefore the car is no longer subject to luxury car tax. In the ruling issued on a specific date in 20XX it is stated that under section 7-5 of the LCT Act, luxury car tax is payable on all taxable importations of luxury cars and that under subsection 7-10(1) of the LCT Act you make a taxable importation of a luxury car if the luxury car is imported; and you enter the car for home consumption. Further, the following has been reproduced from our previous decision: The term 'road vehicle' refers to the class of vehicle, not to the actual use to which a particular vehicle may be put. It is a road vehicle if it is in a class of vehicle that is designed for use on public roads and it would be a road vehicle even though it may never be used or registered for use onpublic roads. We are of the view that the car is a road vehicle. Moreover, whether the car is registered or not for road use does not change the class of vehicle to which it belongs. Further, as the importation of the car is considered to be a taxable importation under section 7-10 of the LCT Act it is subject to the luxury car tax.