{"id":755,"date":"2012-10-22T15:07:28","date_gmt":"2012-10-22T15:07:28","guid":{"rendered":"http:\/\/toyota-dealer.org\/wp1\/2012\/10\/22\/custom-duty-gst-and-lct-on-cars-in-australia\/"},"modified":"2012-10-22T15:07:28","modified_gmt":"2012-10-22T15:07:28","slug":"custom-duty-gst-and-lct-on-cars-in-australia","status":"publish","type":"post","link":"https:\/\/toyota-dealer.org\/wp1\/custom-duty-gst-and-lct-on-cars-in-australia.html","title":{"rendered":"Custom Duty, GSt and LCT on cars in Australia"},"content":{"rendered":"<h2><strong>Customs duty, GST, LCT on Cars in Australia<\/strong><\/h2>\n<p>Duty rates payable are determined by the tariff classification for your goods.&nbsp; The&nbsp;<em>Customs Tariff Act 1995<\/em>&nbsp;(the Tariff) provides the tariff classifications, duty rates, interpretive rules and information on preference schemes, other concessions and exemptions that may apply to your goods.&nbsp; Duty is payable on the customs value of the goods.<\/p>\n<p>  <!--more-->  <\/p>\n<p>GST applies to most imported goods.&nbsp; There are a few exemptions from the GST, one being road vehicles for disabled persons, subject to certain conditions.&nbsp; If no exemptions apply, GST is applied at 10% of the value of the taxable importation (VoTI).<\/p>\n<p>For imported road vehicles the VoTI is the sum of:<\/p>\n<ul>\n<li>the customs value (CV);<\/li>\n<li>any duty payable; and<\/li>\n<li>the amount paid or payable to transport the goods to Australia and to insure the goods for the transport (T&amp;I).<\/li>\n<\/ul>\n<p>LCT applies to road vehicles (except motor cycles or similar vehicles) that are:<\/p>\n<ul>\n<li>designed to carry a load of less than two tonnes and fewer than nine passengers; and<\/li>\n<li>above a certain value.<\/li>\n<\/ul>\n<p>The definition of a road vehicle for LCT purposes includes limousines regardless of the passenger carrying capacity.&nbsp; The value above which the LCT becomes payable is the LCT threshold. The LCT threshold is a GST inclusive value which, for the 2012\/13 financial year, is set at $59,133.&nbsp;<strong>(NB: Customs Value can be an amount less than the LCT threshold figure, as shown in the example below).<\/strong><\/p>\n<p>The LCT rate is 33 % (commencing 1 July 2008, prior to that date the rate was 25%).&nbsp; While the LCT threshold is GST-inclusive, LCT is only payable on the GST-exclusive amount which exceeds the threshold value.<\/p>\n<p>An example of how the LCT is applied is shown below:<\/p>\n<table border=\"0\" cellpadding=\"4\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"279\" valign=\"bottom\">\n<p><strong>Imported New Luxury Car<\/strong><\/p>\n<\/td>\n<td width=\"162\" valign=\"bottom\">\n<p><strong>&nbsp;Calculation<\/strong><\/p>\n<\/td>\n<td width=\"87\" valign=\"bottom\">\n<p><strong>Amount<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\">\n<p>Customs Value (CV)<\/p>\n<\/td>\n<td valign=\"bottom\">\n<p>&nbsp;<\/p>\n<\/td>\n<td valign=\"bottom\">\n<p>$56,000.00<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\">\n<p>Customs Duty = 5% x CV<\/p>\n<\/td>\n<td valign=\"bottom\">\n<p>= 0.05 x 56,000<\/p>\n<\/td>\n<td valign=\"bottom\">\n<p><strong>$2,800.00<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\">\n<p>Transport and Insurance (T&amp;I)<\/p>\n<\/td>\n<td valign=\"bottom\">\n<p>&nbsp;<\/p>\n<\/td>\n<td valign=\"bottom\">\n<p>$1,500.00<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\">\n<p>VoTI&nbsp; (CV+Duty+T&amp;I)<\/p>\n<\/td>\n<td valign=\"bottom\">\n<p>= 56,000 + 2,800 + 1,500<\/p>\n<\/td>\n<td valign=\"bottom\">\n<p>$60,300.00<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\">\n<p>GST = 10% x VoTI<\/p>\n<\/td>\n<td valign=\"bottom\">\n<p>=&nbsp;0.10 x 60,300<\/p>\n<\/td>\n<td valign=\"bottom\">\n<p><strong>$6,030.00<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\">Luxury car value (LCV) = (GST+VoTI)<\/td>\n<td valign=\"bottom\">\n<p>= 6,030 + 60,300<\/p>\n<\/td>\n<td valign=\"bottom\">\n<p>$66,330.00<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\">\n<p>LCT = (LCV-LCT threshold) x 10\/11 x 0.33<\/p>\n<\/td>\n<td valign=\"bottom\">\n<p>= 66,330-59,133 x 10\/11 x 0.33<\/p>\n<\/td>\n<td valign=\"bottom\">\n<p><strong>$2,159.10<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\">\n<p><strong>TOTAL PAYABLE (Duty + GST + LCT)<\/strong><\/p>\n<\/td>\n<td valign=\"bottom\">\n<p><strong>&nbsp;2,800 + 6,030 + 2,159.10<\/strong><\/p>\n<\/td>\n<td valign=\"bottom\">\n<p><strong>$10,989.10<\/strong><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>Fuel efficient luxury cars<\/strong>&nbsp;with a luxury car value (VoTI plus GST) under the Fuel Efficient Vehicle (FEV) limit of $75,375 for the 2012-13 financial year are not subject to LCT. Further information can be found by accessing Australian Customs Notice 2009\/41&nbsp;Luxury Car Tax in the Integrated Cargo System &#8211; Update.<\/p>\n<p><strong>Please note:<\/strong>&nbsp; You do not need to make any calculations regarding duty, GST or LCT (if applicable) liabilities.&nbsp; When your import declaration is processed Customs will provide you with an Outstanding Payment Advice.&nbsp; This Advice will show all amounts payable to Customs relating to your imported goods.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Customs duty, GST, LCT on Cars in Australia Duty rates payable are determined by the tariff classification for your goods.&nbsp; The&nbsp;Customs Tariff Act 1995&nbsp;(the Tariff)<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[530],"tags":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/toyota-dealer.org\/wp1\/wp-json\/wp\/v2\/posts\/755"}],"collection":[{"href":"https:\/\/toyota-dealer.org\/wp1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/toyota-dealer.org\/wp1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/toyota-dealer.org\/wp1\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/toyota-dealer.org\/wp1\/wp-json\/wp\/v2\/comments?post=755"}],"version-history":[{"count":0,"href":"https:\/\/toyota-dealer.org\/wp1\/wp-json\/wp\/v2\/posts\/755\/revisions"}],"wp:attachment":[{"href":"https:\/\/toyota-dealer.org\/wp1\/wp-json\/wp\/v2\/media?parent=755"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/toyota-dealer.org\/wp1\/wp-json\/wp\/v2\/categories?post=755"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/toyota-dealer.org\/wp1\/wp-json\/wp\/v2\/tags?post=755"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}