25‑1 Meaning of luxury car25‑1 Meaning of luxury car

25‑1 Meaning of luxury car

(1) A luxury car is a *car whose *luxury car tax value exceeds the *luxury car tax threshold. (2) However, a *car is not a *luxury car if it is: (a) a vehicle that is specified in the regulations to be an emergency vehicle, or that is in a class of vehicles that are specified in the regulations to be emergency vehicles; or (b) specially fitted out for transporting *disabled people seated in wheelchairs (unless the supply of the car is *GST‑free under Subdivision 38‑P of the *GST Act); or (c) a commercial vehicle that is not designed for the principal purpose of carrying passengers; or (d) a motor home or campervan. Luxury car tax threshold—general (3) Subject to subsection (4), the luxury car tax threshold is: (a) $80,567 if the supply of the car occurs, or the car is *entered for home consumption, in the 2024‑25 *financial year; or (b) if that supply, or entry for home consumption, is in a later financial year—the amount worked out for that financial year after indexing $80,567 annually using Subdivision 960‑M of the *ITAA 1997. Luxury car tax threshold—fuel efficient cars (4) If the *car has a fuel consumption not exceeding 3.5 litres per 100 kilometres as a combined rating under national road vehicle standards in force under section 12 of the Road Vehicle Standards Act 2018, the luxury car tax threshold is the *fuel‑efficient car limit for the year in which the supply of the car occurred or the car was *entered for home consumption. (5) The fuel‑efficient car limit for the 2008‑09 *financial year is $75,000. The limit is indexed annually using Subdivision 960‑M of the *ITAA 1997. Indexation (6) In indexing the *luxury car tax threshold or *fuel‑efficient car limit, Subdivision 960‑M of the *ITAA 1997 applies as if: (a) the table in section 960‑265 of that Act included an item referring to (as the case may be): (i) the luxury car tax threshold and subsection (3) of this section; or (ii) the fuel‑efficient car limit and subsection (5) of this section; and (b) the reference in subsection 960‑270(1) of that Act to provisions of that Act included a reference to subsection (3) or (5) of this section (as the case may be); and (c) the reference in subsection 960‑280(2) of that Act to the car limit included a reference to the luxury car tax threshold or fuel‑efficient car limit (as the case may be).