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Luxury Car Tax: Australian Tax Office Closes ‘Loophole’, Discounts Targeted

The Australian Tax Office’s new luxury car tax laws (LCTs) are now in force, following its successful bid to close a loophole in the controversial laws. Previously, dealers were able to lighten the load on customers with factory-backed


The Australian Tax Office’s new luxury car tax laws (LCTs) are now in force, following its successful bid to close a loophole in the controversial laws.

Previously, dealers were able to lighten the load on customers with factory-backed incentives and discounts, which indirectly lowered the car’s asking-price (or added value to it) and therefore, the amount of tax payable.

This week saw the introduction of new laws which follow a Federal Court ruling in December, effectively closing that loophole.

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