2023 Ineos Grenadier sidesteps Luxury Car Tax in landmark ruling, prices reduced

The incoming 2023 Ineos Grenadier four-wheel drive will be exempt from Luxury Car Tax (LCT) in Australia – saving buyers thousands of dollars in on-road costs – after the Australian Tax Office ruled it is not a luxury vehicle.

Savings will equate to between $4174 and more than $18,000, depending on the vehicle’s specifications, options and accessories.

In an email sent to Australian customers this week, Ineos said it had been “working with the Australian Tax Office” and “due to the Grenadier’s design, engineering and capability, it is not considered a luxury car for tax purposes.”

“Therefore all wagon models, options and accessories are exempt from LCT.”

The Luxury Car Tax has recently been revamped in Australia, affecting cars with a value of over the threshold of $71,849.

Fuel efficient and zero-emission vehicles have their own LCT threshold: $84,916.

The Luxury Car Tax rate of 33 per cent is applied on top of every dollar above the threshold, and as such has for years been criticised for being "a tax on a tax on a tax" when import duty and GST are included.

With a price range starting from $84,500 to $96,495 (before on-road costs), the Ineos Grenadier can cost in excess of $126,000 with every option ticked. In this case, owners will see savings of more than $18,000.

Toyota’s LandCruiser 70 Series wagon and Troop Carrier are also exempt from Luxury Car Tax, due to a ruling made more than a decade ago, several years after they had been on sale. (The Toyota LandCruiser 70 Series ute has never been subject to LCT because it is a pick-up).

However, the Ineos Grenadier is believed to be the first "borderline" vehicle – which eclipsed the LCT price threshold, and therefore the ruling could have gone either way – to be introduced with a Luxury Car Tax exemption.