Luxury Car Tax

[TVP993]

Hi All,

My cousin is going to be moving to Melbourne in 14-16 months time. I'm thinking of asking him to bring me over a car. The car itself is worth about £25-26k (roughly $41k at todays exchange rate) and from looking at the ATO website LCT only applies to cars that are worth over $57,466

However having looked on Carsales the particular car is worth around $100k.

So the question is will I need to pay LCT based upon the Aussie market value or can I show customs/valuer the recepit of purchase and not have to pay LCT.

Any help much appreciated.

[02PRUV]

LCT is payable when you pay rego for the first time. So if you show rego a receipt for $40k then no you won't have to pay it.

[TVP993]

Another question. Since there is the stupid rule here that you have to pay stamp duty on the purchase price of a car. If/when he brings the car over and we change it over to my name I assume that we will have to do a 'pretend' transaction and therefore show how much I 'bought' the car for in order to pay the stamp duty.

Is there another way of doing this without having to pay the stamp duty?

Just trying to get all the figures together to see if it's all worth it.

Cheers

[ukdennis]

The "as landed" valuation of the car in Oz is usually determined by the valuer at this end, having regard to the condition of the car and local valuation of similar vehicles, discounted by the fact that it is in effect a "grey import" thus worth less here, and the fact that it has not yet been registered. The UK sales invoice or UK valuation is not really a factor. In my experience, the "as landed" valuation is usually somewhere between the UK current valuation and the cost of an equivalent car in Oz as shown by Redbook etc, but closer to the UK valuation.

As far as stamp duty goes, it might be worse than you think. In WA, a personally-imported car is not subject to stamp duty on first registration (by the UK owner). Stamp duty there is only payable when there is a change of ownership of the car.

However, it seems that in the Eastern States, stamp duty is payable on first registration regardless of whether you already own the car. Then, when you come to transfer ownership from your cousin to you, you would probably have to pay stamp duty again, based on a proper market value for the car (probably the "as landed" valuation).

[Bob the Planner]

When I landed the Tuscan,I gave the valuer a number of adverts from PH as a reference and at $??K compared to Aus prices its a steal. No idea on transfer within Aus though. I know there are issues in moving vehicles between states therefore I would recommend it is imported into NSW even if you pay more taxes. I met the valuer at the bonded warehouse and we talked throughout the inspection. Have heard of other experiences where it was done remotely with very different results.

[vetrof]

Pertinent info.

http://www.infrastructure.gov.au/roads/vehicle_reg...

Probably specifically;

http://www.infrastructure.gov.au/roads/vehicle_reg...

and

http://www.customs.gov.au/site/page4371.asp

and

http://www.customs.gov.au/webdata/resources/files/...


Be aware that a vehicle which gets import approval does not automatically mean it will be eligible for registration. You also need to check the relevant state licencing authority eg Vicroads.

[Google [bot]]

TVP993 said:

Is there another way of doing this without having to pay the stamp duty?

I don't see how there would be any way out of this. You have to show the receipt showing the purchase price. Of course, these can be fabricated but no idea of the implications of a blatant lie.