Business Tax

ATO Concerns On Luxury Car Tax

The ATO has issued an alert warning taxpayers that it is investigating certain arrangements where entities on-sell luxury cars without remitting the requisite luxury car tax amount. This applies to those selling luxury cars in the ordinary course of business in any structure (ie company or sole trader), as well as those that sell a luxury car to an employee, an associate, or an employee of an associate as a one off transaction. Remember, for the 2021-22 financial year, all non-fuel efficient vehicles over $69,152 are considered to be luxury cars.