Luxury Car Tax Refunds 2024/25
Refunds for Primary Producers and Tourism Operators
Primary producers and tourism operators are eligible to claim a refund of up to $10,000 of Luxury Car Tax (LCT) on one eligible car purchased or leased in a financial year. Only one vehicle per year qualifies for the refund.
What Is Luxury Car Tax?
Luxury Car Tax is an additional tax applied at 33% on the retail price of a car once it exceeds the LCT threshold. The tax applies when a motor vehicle:
Is designed to carry less than two tonnes and fewer than nine passengers,
Is less than two years old, and
Is sold by a retailer, wholesaler, manufacturer, or imported by an individual.
Exemptions apply to vans, trucks, motorhomes, campervans, vehicles used to carry disabled persons, GST-exempt vehicles, and certain purchases by endorsed public institutions.
Current Thresholds
For the year ending 30 June 2025, the thresholds are:
Fuel-efficient vehicles (7 litres per 100 km or less): $91,387
Other vehicles: $80,567
Fuel-efficient vehicles priced above the general threshold but below the fuel-efficient threshold do not attract LCT, an incentive that has led to more prestige manufacturers releasing fuel-efficient luxury cars.
Refund Rules and Application Process
The refund for eligible primary producers and tourism operators was increased from $3,000 to $10,000 in 2019 and has remained unchanged since. To claim, you must:
Meet the ATO’s eligibility requirements,
Complete the Application for Luxury Car Tax Refund for Primary Producers and Tourism Operators (NAT 72601), and
Lodge your claim within four years of purchase.
You can still claim a refund even if you are not registered for GST.
Reporting and Adjustments
Businesses selling or importing luxury cars must report LCT in their Business Activity Statement (BAS). Calculations will depend on whether LCT has already been applied to the vehicle. In some cases, credits or adjustments may be available.
How Pratt Partners Can Help
Purchasing a luxury vehicle can have significant tax implications. Our team at PRATT Partners | Chartered Accountants helps business owners, primary producers, and tourism operators:
Confirm eligibility for refunds,
Structure purchases for the best tax outcome, and
Ensure compliance with ATO reporting and lodgement requirements.
Contact us today to discuss your circumstances before signing a contract, so you can avoid costly surprises and maximise your tax position.
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