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Tax Laws Amendment (Luxury Car Tax) Bill 2008

Schedule 2 Refunds for primary producers and tourism operators

   

A New Tax System (Luxury Car Tax) Act 1999

1  At the end of section 2-10

Add:

             (4)  Refunds can arise for primary producers and tourism operators in certain circumstances. (Division 18) .

2  After Division 17

Insert:

Division 18 Refunds

18-1   What this Division is about

Refunds under this Division may be available to primary producers and tourism operators for the supply of certain cars.

18-5   Refunds for tax borne—primary producers

             (1)  You are entitled to a refund under this section if:

                     (a)  you have a refund entitlement under this section; and

                     (b)  you are * registered ; and

                     (c)  no one else has made a valid claim for a refund in relation to the refund entitlement.

             (2)  You have a refund entitlement if:

                     (a)  you have * borne luxury car tax on the supply, or * importation, of a * refund-eligible car; and

                     (b)  at the time of the supply or importation you are carrying on a * primary production business.

             (3)  The amount of the refund for a refund entitlement under subsection (2) is the lesser of:

                     (a)  8 / 33 of the luxury car tax * borne by you as described in paragraph (2)(a); and

                     (b)  $3,000.

             (4)  You cannot have a refund entitlement under subsection (2) for more than one * car in a * financial year.

18-10   Refunds for tax borne—tourism operators

             (1)  You are entitled to a refund under this section if:

                     (a)  you have a refund entitlement under this section; and

                     (b)  you are * registered; and

                     (c)  no one else has made a valid claim for a refund in relation to the refund entitlement.

             (2)  You have a refund entitlement if:

                     (a)  you have * borne luxury car tax on the supply, or * importation, of a * refund-eligible car; and

                     (b)  the Commissioner is satisfied that:

                              (i)  you will use the car solely for the purpose of carrying on a business; and

                             (ii)  the principal purpose of the business is carrying tourists for * tourist activities.

             (3)  The amount of the refund for a refund entitlement under subsection (2) is the lesser of:

                     (a)  8 / 33 of the luxury car tax * borne by you as described in paragraph (2)(a); and

                     (b)  $3,000.

18-15   Claiming refunds

             (1)  You must claim a refund within 4 years of becoming entitled to the refund.

             (2)  A claim for a refund must be in the * approved form.

18-20   Payment of refunds

                   If you are entitled to a refund under this Division and you have claimed the refund, the Commissioner must, on behalf of the Commonwealth, pay the amount of the refund to you.

3  Section 27-1

Insert:

primary production business has the meaning given by section 995-1 of the * ITAA 1997.

4  Section 27-1

Insert:

refund-eligible car means a 4 wheel drive, or all wheel drive, * car of a kind specified in regulations made for the purposes of this definition.

5  Section 27-1

Insert:

tourist activity has the meaning set out in regulations made for the purposes of this definition.

6  Application

The amendments made by this Schedule apply to taxable supplies of luxury cars and taxable importations of luxury cars on or after 1 July 2008.