#EveryoneNeedsAPlan: Luxury Car Tax on Utes

The Australian Tax Office ('ATO') has provided their 'guidance' on the application of the Luxury Car Tax ('LCT') for vehicles, based on its principal purpose:

• Generally 'commercial' vehicles such as utes with a load capacity of 1 ton or more were considered commercial and therefore not subject to LCT
• The ATO now wants to know more about the vehicle's principal purpose rather than its type before determining if the vehicle is subject to the LCT
• The 'guidance' is not straight forward, so it is recommended that the purchaser seek advice from a suitably qualified tax professional before finalising the purchase of new