Issued by authority of the Treasurer

A New Tax System (Luxury Car Tax) Act 1999

A New Tax System (Luxury Car Tax) Amendment Regulations 2008 (No. 1)

Section 21-20 of the A New Tax System (Luxury Car Tax) Act 1999 allows the Governor‑General to make regulations prescribing matters that are required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

The purpose of the amending Regulations is to amend the A New Tax System (Luxury Car Tax) Regulations 2000 to define ‘tourist activity’ and ‘refund-eligible car.’

Under Division 18 of the LCT Act, a refund of 8/33rds of the amount of LCT paid is available for ‘primary producers’ or certain tourism businesses that acquire a ‘refund-eligible car’.

The amending Regulations specify that a refund-eligible car is a four wheel drive, or all wheel drive, car that is in the category described as ‘passenger car (MA)’ and has a ground clearance of not less than 175 mm; or is in the category described as ‘off-road passenger vehicle (MC)’ for the purpose of the Vehicle Standard (Australian Design Rule – Definitions and Vehicle Categories) 2005.

The amending Regulations also specify that a tourist activity is an activity that is a leisure activity (that is an activity involving a visit by a tourist to a site of scenic beauty, cultural interest, environmental interest, historical interest or recreational interest); is of a touring nature; and does not involve the transporting of passengers by taxi or limousine for fares; or by a hire car service.

The Regulations commenced on 1 July 2008.

Consultation was undertaken to ensure the definitions of ‘tourist activity’ and ‘refund-eligible car’ are appropriate.