Luxury Car Tax Refunds
- Nijo Antony
- Sep 16
- 2 min read
If you’re a farmer or primary producer, here’s some good news when you buy certain 4WDs or AWDs, you may be able to get back up to $10,000 in Luxury Car Tax (LCT).
What is Luxury Car Tax (LCT)?
LCT is a federal tax applied when you buy or import a vehicle above certain thresholds:
$91,387 for fuel-efficient vehicles (2024–25), and
$80,567 for other vehicles.
Anything above the threshold is taxed at 33%.
Who Can Claim the Refund?
If you are a primary producer registered for GST, you may be entitled to a Luxury Car Tax refund of up to $10,000 if:
The vehicle is a 4WD or AWD with at least 175 mm ground clearance or classified as an off-road passenger vehicle, and
You use it in your farming or primary production business.
Primary producers can claim one eligible vehicle per financial year.
Example 1: John the Cattle Farmer
John, a cattle farmer in Queensland, purchased a Toyota Land Cruiser wagon for $120,000 (GST-inclusive). Because the price exceeded the threshold, the dealer charged LCT.
The Land Cruiser qualifies as a 4-wheel drive (4WD) vehicle with high clearance.
John is GST-registered and uses the vehicle daily for farm work, checking fences, moving stock, and towing equipment.
As a primary producer, John can apply for an LCT refund of up to $10,000 on this purchase.
Example 2: Family Trust Operating a Farm
The Smith Family Trust runs a mixed cropping and livestock enterprise in New South Wales. The trust is registered for GST and employs family members in the business.
In 2025, the trust buys a Nissan Patrol 4WD for $105,000 (GST-inclusive). Because the price is above the non-fuel-efficient threshold, LCT was included in the cost.
The vehicle is a 4WD with sufficient clearance.
The trust uses the Patrol for business purposes, supervising workers, transporting supplies, and towing machinery across paddocks.
Since the Smith Family Trust qualifies as a primary producer, the trustee can lodge a claim with the ATO to receive an LCT refund of up to $10,000. The refund is available even though the business is operated through a trust structure rather than in an individual’s name.
Why This Matters
For farming families and rural businesses, vehicles like Land Cruisers and Patrols aren’t luxuries, they’re essential tools. The LCT refund helps reduce costs, enabling businesses to invest in reliable vehicles without bearing the full tax burden.
Want to Know if You Qualify?
If you’re considering a new 4WD or AWD for your farm or family trust business, it’s worth checking whether you’re eligible for the LCT refund.
Contact us if you’d like to discuss your situation or need help with the claim. We’re here to make sure you don’t leave money on the table.
Nijo Antony
Director