Commonwealth Numbered Regulations - Explanatory Statements

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A NEW TAX SYSTEM (LUXURY CAR TAX) REGULATIONS 2000 2000 NO. 112

STATUTORY RULES 2000 No. 112

Issued by authority of the Assistant Treasurer

A New Tax System (Luxury Car Tax) Act 1999

A New Tax System (Luxury Car Tax) Regulations 2000

The Governor-General may make regulations under section 21-20 of the A New Tax System (Luxury Car Tax) Act 1999 (the Act) for the purposes of the Act. Further, paragraph 251(2)(a) of the Act provides that the regulations may specify a vehicle or class of vehicle to be an emergency vehicle.

The purpose of the Regulations is to set out when a vehicle or class of vehicle will be an emergency vehicle and therefore excluded from luxury car tax.

The Act imposes a luxury car tax at the rate of 25 per cent on luxury cars on the GST exclusive value above the luxury car tax threshold. The Act will commence on 1 July 2000.

Luxury car tax was introduced as part of the tax reform measures commencing on 1 July 2000, in conjunction with the GST. Generally, prior to 1 July 2000, emergency vehicles have not been subject to sales tax where they have been used by exempt bodies. The Regulations will ensure that a supply of an emergency vehicle will not be subject to luxury car tax if it is a vehicle or class of vehicle described in new regulation 25-1.01 and Schedule 1.

The emergency vehicles specified in the regulations are not limited to those operated by government or non-profit bodies. Emergency vehicles used by private organisations are included.

The regulations commence on commencement of the Act, i.e. 1 July 2000.