Document ID: chunk:federal_register_of_legislation:C2022C00033:section:4:p20
Version: federal_register_of_legislation:C2022C00033
Segment Type: section
Provision Reference: s 4 (pt 20/29)
Character Range: 55886–58480

unreasonable.

Division 25—Luxury cars

25‑1  Meaning of luxury car
 (1) A luxury car is a *car whose *luxury car tax value exceeds the *luxury car tax threshold.
 (2) However, a *car is not a *luxury car if it is:
 (a) a vehicle that is specified in the regulations to be an emergency vehicle, or that is in a class of vehicles that are specified in the regulations to be emergency vehicles; or
 (b) specially fitted out for transporting *disabled people seated in wheelchairs (unless the supply of the car is *GST‑free under Subdivision 38‑P of the *GST Act); or
 (c) a commercial vehicle that is not designed for the principal purpose of carrying passengers; or
 (d) a motor home or campervan.

Luxury car tax threshold—general
 (3) Subject to subsection (3A) and (4), the luxury car tax threshold is:
 (a) the car depreciation limit that applied under the former Subdivision 42‑B of the *ITAA 1997; or
 (b) the car limit that applies under section 40‑230 of that Act;
for the year in which the supply of the car occurred or the car was *entered for home consumption.
 (3A) On and from 1 July 2012 the luxury car tax threshold is the luxury car tax threshold as at 30 June 2012 indexed according to a factor to be determined by the Parliament and to apply from 1 July 2012 or, if such a factor is not determined by the Parliament, indexed annually in accordance with the CPI indexation method provided for by Subdivision 960‑M of the *ITAA 1997, calculated using the index number referred to in subsection 960‑280(1) of that Act.

Luxury car tax threshold—fuel efficient cars
 (4) If the *car has a fuel consumption not exceeding 7 litres per 100 kilometres as a combined rating under national road vehicle standards in force under section 12 of the Road Vehicle Standards Act 2018, the luxury car tax threshold is the *fuel‑efficient car limit for the year in which the supply of the car occurred or the car was *entered for home consumption.
 (5) The fuel‑efficient car limit for the 2008‑09 *financial year is $75,000. The limit is indexed annually using Subdivision 960‑M of the *ITAA 1997.
 (6) In indexing the *fuel‑efficient car limit, Subdivision 960‑M of the *ITAA 1997 applies as if:
 (a) the table in section 960‑265 of that Act included an item referring to the fuel‑efficient car limit and to subsection (5) of this section; and
 (b) the reference in subsection 960‑270(1) of that Act to provisions of that Act included a reference to subsection (5) of this section; and
 (c) section 960‑270 of that Act applied, and section 960‑285 of that Act did not apply, in relation to the