The Australian Taxation Office (ATO) has released the publication Luxury car tax: how to determine the principal purpose of a vehicle (LCTD 2023/1).
LCTD 2023/1 explains how to determine the principal purpose of a car for the purposes of A New Tax System (Luxury Car Tax) Act 1999 (LCT Act) (Cth). The ATO advised all legislative references in LCTD2023/1 align to the LCT Act unless otherwise indicated.
The appendix to this determination also sets out a compliance approach that outlines how the commissioner will allocate compliance resources with respect to this issue.
Dealers and their taxation advisors should familiarise themselves with this document.
Refer to the ATO website for further information. If you have any queries, contact your taxation advisor.