Class Ruling CR 2012/37
Date of effect: 1 February 2005

What this ruling is about: 1. This Ruling sets out the Commissioner's opinion on the way in which the relevant provision(s) identified below apply to the defined class of entities, who take part in the scheme to which this Ruling relates. Relevant provision(s) 2. The relevant provision dealt with in this Ruling is: All subsequent legislative references in the Ruling are to the LCT Act unless otherwise indicated. Class of entities 3. The class of entities to which this Ruling applies are those entities that: 4. A reference to a Toyota dealer is a reference to the above class of entities. 5. A reference to Distributors is a reference to Prestige Motors Pty Ltd and/or Eastpoint Pty Ltd. Qualifications 6. The Commissioner makes this Ruling based on the precise scheme identified in this Ruling. 7. The class of entities defined in this Ruling may rely on its contents provided the scheme actually carried out is carried out in accordance with the scheme described in paragraphs 11 to 21 of this Ruling. 8. If the scheme actually carried out is materially different from the scheme that is described in this Ruling, then: 9. This work is copyright. Apart from any use as permitted under the Copyright Act 1968 , no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and inquiries concerning reproduction and rights should be addressed to:

Class of entities or scheme: 3. The class of entities to which this Ruling applies are those entities that: 4. A reference to a Toyota dealer is a reference to the above class of entities. 5. A reference to Distributors is a reference to Prestige Motors Pty Ltd and/or Eastpoint Pty Ltd. | Qualifications: 6. The Commissioner makes this Ruling based on the precise scheme identified in this Ruling. 7. The class of entities defined in this Ruling may rely on its contents provided the scheme actually carried out is carried out in accordance with the scheme described in paragraphs 11 to 21 of this Ruling. 8. If the scheme actually carried out is materially different from the scheme that is described in this Ruling, then: 9. This work is copyright. Apart from any use as permitted under the Copyright Act 1968 , no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and inquiries concerning reproduction and rights should be addressed to: 10. This Ruling applies to tax periods commencing on or after 1 February 2005. The Ruling applies to all entities within the specified class who entered into the specified scheme on or after 1 February 2005. However, this Ruling will not apply to taxpayers to the extent that it conflicts with the terms of a settlement of a dispute agreed to before the date of issue of this Ruling (see paragraphs 75 and 76 of Taxation Ruling TR 2006/10). 11. The following description of the scheme is based on information provided by the applicant. The following documents, or relevant parts of them form part of and are to be read with the description: 12. Toyota is a manufacturer, distributor and exporter of motor vehicles. 13. The Toyota dealers have an agreement with either Toyota or the Distributors. 14. Pursuant to the agreement, the Toyota dealers are entitled to be supplied with Toyota vehicles by Toyota or the Distributors. 15. The Toyota dealers are or have been supplied with, and sell the following vehicles to the public: 16. There are 32 variants of the abovementioned four classes of vehicles. 17. In this Class Ruling, the 32 variants of the abovementioned four classes of vehicles are collectively referred to as the HiLux Vehicles. 18. All the HiLux Vehicles are designed to carry a load of less than two tonnes and fewer than 9 passengers. 19. The HiLux TRD vehicles ceased production in 2008. 20. In this Class Ruling, the HiLux Single Cab, Xtra Cab and Double Cab vehicles are collectively referred to as HiLux Standard Range vehicles. 21. For the purposes of this Class Ruling, the HiLux Standard Range vehicles are vehicles from the 1 February 2005 production until the June 2011 production modifications; and from the June 2011 production modifications. 22. The HiLux Vehicles do not fall within the meaning of 'luxury car' under section 25-1 of the LCT Act. 23. Accordingly, when the Toyota dealers supply a HiLux Vehicle, no luxury car tax (LCT) is payable on the supply. Commissioner of Taxation 30 May 2012 | Meaning of luxury car: 24. Section 5-5 of the LCT Act provides that an entity must pay LCT on any taxable supply of a luxury car that it makes. 25. Section 5-10 of the LCT Act sets out the requirements for a taxable supply of a luxury car, including that the supply is that of a luxury car. 26. Subsection 25-1(1) of the LCT Act provides that a luxury car is a car, whose luxury car tax value exceeds the luxury car tax threshold. 27. The Dictionary in section 27-1 of the LCT Act provides that a car means a motor vehicle (except a motor cycle or similar vehicle) that is designed to carry a load of less than 2 tonnes and fewer than 9 passengers or a limousine (regardless of the number of passengers it is designed to carry). As the HiLux Vehicles are all designed to carry less than two tonnes and fewer than 9 passengers, they meet the definition of a car. 28. However, paragraph 25-1(2)(c) of the LCT Act provides that a car is not a luxury car if it is a commercial vehicle that is not designed for the principal purpose of carrying passengers. 29. Accordingly, an entity does not have to pay LCT on a car with a value above the LCT threshold, if it is a commercial vehicle. 30. Some vehicles with a load carrying capacity (load capacity) of less than two tonnes can be designed to carry both passengers and goods. These vehicles include: dual cab vehicles; crew cab vehicles; and utility vehicles. 31. These vehicles will be referred to as dual purpose vehicles. The principal purpose of such a vehicle depends on the load capacity of the vehicle and whether it is designed to carry mainly passengers or goods. 32. From the information provided, in relation to the gross vehicle mass (GVM), un-laden mass (UM), and the seating capacity including the driver, for each of vehicles in the 32 variants, it is concluded that the HiLux vehicles are dual purpose vehicles. 33. However, to determine whether a HiLux Vehicle is a vehicle designed for the principal purpose of carrying goods for business or trade (i.e. a commercial vehicle), regard is had to the Australian Design Rules. 34. The Australian Design Rules Definitions and Vehicle Categories state that: 35. Thus, the process to determine whether any of the dual purpose vehicles supplied pre and post 1 July 2011 constitutes a luxury car is as follows: 36. Attachments A and B list the 32 models of the HiLux Vehicles that are not luxury cars under section 25-1 of the LCT Act. 37. The following is a detailed contents list for this Ruling: Toyota HiLux vehicle models supplied prior to 1 July 2011 Toyota HiLux vehicle models supplied after 1 July 2011 Not previously issued as a draft

Ruling: 22. The HiLux Vehicles do not fall within the meaning of 'luxury car' under section 25-1 of the LCT Act. 23. Accordingly, when the Toyota dealers supply a HiLux Vehicle, no luxury car tax (LCT) is payable on the supply. Commissioner of Taxation 30 May 2012


Appendix: Meaning of luxury car: 24. Section 5-5 of the LCT Act provides that an entity must pay LCT on any taxable supply of a luxury car that it makes. 25. Section 5-10 of the LCT Act sets out the requirements for a taxable supply of a luxury car, including that the supply is that of a luxury car. 26. Subsection 25-1(1) of the LCT Act provides that a luxury car is a car, whose luxury car tax value exceeds the luxury car tax threshold. 27. The Dictionary in section 27-1 of the LCT Act provides that a car means a motor vehicle (except a motor cycle or similar vehicle) that is designed to carry a load of less than 2 tonnes and fewer than 9 passengers or a limousine (regardless of the number of passengers it is designed to carry). As the HiLux Vehicles are all designed to carry less than two tonnes and fewer than 9 passengers, they meet the definition of a car. 28. However, paragraph 25-1(2)(c) of the LCT Act provides that a car is not a luxury car if it is a commercial vehicle that is not designed for the principal purpose of carrying passengers. 29. Accordingly, an entity does not have to pay LCT on a car with a value above the LCT threshold, if it is a commercial vehicle. 30. Some vehicles with a load carrying capacity (load capacity) of less than two tonnes can be designed to carry both passengers and goods. These vehicles include: dual cab vehicles; crew cab vehicles; and utility vehicles. 31. These vehicles will be referred to as dual purpose vehicles. The principal purpose of such a vehicle depends on the load capacity of the vehicle and whether it is designed to carry mainly passengers or goods. 32. From the information provided, in relation to the gross vehicle mass (GVM), un-laden mass (UM), and the seating capacity including the driver, for each of vehicles in the 32 variants, it is concluded that the HiLux vehicles are dual purpose vehicles. 33. However, to determine whether a HiLux Vehicle is a vehicle designed for the principal purpose of carrying goods for business or trade (i.e. a commercial vehicle), regard is had to the Australian Design Rules. 34. The Australian Design Rules Definitions and Vehicle Categories state that: 35. Thus, the process to determine whether any of the dual purpose vehicles supplied pre and post 1 July 2011 constitutes a luxury car is as follows: 36. Attachments A and B list the 32 models of the HiLux Vehicles that are not luxury cars under section 25-1 of the LCT Act.


What this Ruling is about | NOT LEGALLY BINDING SECTION: | A public ruling is an expression of the Commissioner's opinion about the way in which a relevant provision applies, or would apply, to entities generally or to a class of entities in relation to a particular scheme or a class of schemes. | If you rely on this ruling, the Commissioner must apply the law to you in the way set out in the ruling (unless the Commissioner is satisfied that the ruling is incorrect and disadvantages you, in which case the law may be applied to you in a way that is more favourable for you - provided the Commissioner is not prevented from doing so by a time limit imposed by the law). You will be protected from having to pay any underpaid tax, penalty or interest in respect of the matters covered by this ruling if it turns out that it does not correctly state how the relevant provision applies to you. | A vehicle constructed for both the carriage of persons and the carriage of goods shall be considered to be primarily for the carriage of goods if the number of seating positions times 68kg is less than 50 percent of the difference between the 'Gross Vehicle Mass' and the 'Un-laden Mass'. | Appendix 2 - Detailed contents list | Toyota HiLux Single Cab Vehicles | Gross vehicle mass (GVM) Kg | Load Capacity (GVM UM) Kg | Total Passenger Weight (TPW) Kg | HiLux SR 4x2, Single Cab Pickup, Petrol 5 Auto | HiLux SR 4x2, Single Cab Pickup, Petrol 5 Manual | HiLux SR 4x2, Single Cab Chassis, Diesel 5 Manual | HiLux SR 4x2, Single Cab Chassis, Petrol 5 Auto | HiLux SR 4x2, Single Cab Chassis, Petrol 5 Manual | HiLux SR 4x4, Single Cab Chassis, Diesel 4 Auto | HiLux SR 4x4, Single Cab Pickup, Diesel 5 Manual | HiLux SR 4x4, Single Cab Chassis, Petrol 5 Auto | HiLux SR 4x4, Single Cab Chassis, Petrol 5 Manual | HiLux Workmate 4x2, Single Cab, Petrol 5 Auto | HiLux Workmate 4x2, Single Cab, Petrol 5 Manual | Toyota HiLux Xtra Cab Vehicles | HiLux SR 4x2, Xtra Cab Pickup | HiLux SR 4x2, Xtra Cab Chassis | HiLux 9R5 4x2, Xtra Cab Pickup | Toyota HiLux Double Cab Vehicles | HiLux SR 4x2, Double Cab Pickup, Diesel 5 Manual | HiLux SR 4x2, Double Cab Pickup, Petrol 5 Auto | HiLux SR 4x2, Double Cab Pickup, Petrol 5 Manual | HiLux SR 4x4, Double Cab Pickup, Diesel 4 Auto | HiLux SR 4x4, Double Cab Pickup, Diesel 5 Manual | HiLux SR 4x4, Double Cab Pickup, Petrol 5 Auto | HiLux SR 4x4, Double Cab Pickup, Petrol 5 Manual | HiLux SR 4x4, Double Cab Chassis | HiLux SR5 4x2, Double Cab Pickup, Petrol 5 Auto | HiLux SR5 4x2, Double Cab Pickup, Petrol 5 Manual | HiLux SR5 4x4, Double Cab Pickup, V6 Petrol 5 Manual | HiLux SR5 4x4, Double Cab Pickup, Diesel 4 Auto | HiLux SR5 4x4, Double Cab Pickup, Diesel 5 Manual | HiLux SR5 4x4, Double Cab Pickup, V6 5 Auto | HiLux Workmate 4x2, Double Cab Pickup, Petrol 5 Manual | Workmate 4x2, Double Cab Pickup, Petrol Auto | Toyota HiLux TRD Vehicles


Related rulings: TR 2006/10 LCTD 2010/1 LCTD 2011/1
Legislative references: LCT Act LCT Act 5-5 LCT Act 5-10 LCT Act 5 10(1) LCT Act 25-1 LCT Act 25-1(1) LCT Act 25-1(2)(c) TAA 1953 Copyright Act 1968
Subject references: LCT luxury car commercial vehicle dual purpose vehicle
Other references: NAT 3394