The Australian distributor of the Ineos Grenadier four-wheel-generate has successfully lobbied for an exemption for Luxury Car Tax. The landmark ruling by the Australian Tax Workplace will supply up to $18,000 in financial savings on selected models – and set an important precedent for other automotive brand names.
The incoming 2023 Ineos Grenadier four-wheel drive will be exempt from Luxury Automobile Tax (LCT) in Australia – preserving potential buyers hundreds of pounds in on-street charges – after the Australian Tax Business dominated it is not a luxurious vehicle.
Price savings will equate to concerning $4174 and much more than $18,000, dependent on the vehicle’s technical specs, choices and extras.
In an e mail despatched to Australian consumers this 7 days, Ineos stated it had been “working with the Australian Tax Office” and “due to the Grenadier’s structure, engineering and ability, it is not regarded a luxury vehicle for tax applications.”
“Therefore all wagon models, solutions and components are exempt from LCT.”
Fuel effective and zero-emission automobiles have their possess LCT threshold: $84,916.
The Luxurious Car Tax charge of 33 per cent is utilized on major of every single dollar higher than the threshold, and as these has for many years been criticised for remaining “a tax on a tax on a tax” when import obligation and GST are involved.
With a price tag range beginning from $84,500 to $96,495 (prior to on-road fees), the Ineos Grenadier can value in excessive of $126,000 with just about every option ticked. In this scenario, entrepreneurs will see financial savings of much more than $18,000.
Toyota’s LandCruiser 70 Series wagon and Troop Provider are also exempt from Luxurious Vehicle Tax, owing to a ruling built more than a ten years in the past, many a long time soon after they experienced been on sale. (The Toyota LandCruiser 70 Collection ute has never ever been topic to LCT because it is a decide on-up).
However, the Ineos Grenadier is believed to be the first “borderline” car or truck – which eclipsed the LCT selling price threshold, and as a result the ruling could have gone both way – to be released with a Luxury Car or truck Tax exemption.