The Treasurer's Office has informed VACC that an exemption from the new super-luxury rates of duty has been granted for any vehicle ordered by a consumer on or before the 27 May, that will be delivered and registered after 30 June 2019.
This update follows a meeting between VACC CEO, Geoff Gwilym, a delegation of Victorian Automotive Dealers Association (VADA) members and Victorian Treasurer, Tim Pallas on Tuesday, 25 May.
VACC submission, Super Luxury Car Duty Immediate Impacts, informed by member supplied statistics, played a key role in Pallas' decision. Additionally, of crucial importance were the presentation and comment of VADA representatives including Sid Centindag, Gasmack Group; Mark Yarwood, Zagame Automotive Group; Jason Rowe, 3 Point Motors; and Srecko Lorbek, Lorbek Luxury Cars.
It is important to note that Treasurer Pallas has granted this exemption as a decree from his own office, and it has no legislative support. VACC is grateful to the Treasurer for his pragmatic stance.
Broad parameters of the exemption
- New registered owner committed to taking possession of the vehicle before 27 May, but where it was not able to be registered by 30 June - and is therefore registered in that same person's name post 1 July 2019
- Passenger vehicle (new or used) is valued above $100,000
- Applicant required to provide clear evidence of pre-commitment, satisfy State Revenue Office (SRO) of the genuineness of sale/transfer and inability to be registered prior to 30 June 2019
- Duty relief required to benefit new registered owner and not represent a windfall gain
- Relief will only be for incremental duty.
Exemption requests will be heavily scrutinised by the SRO. Any LMCT deviation from parameters could lead to the entire exemption granted being withdrawn to all LMCTs without notice. When released, VACC will advise members as to the process for claiming exemption from new thresholds.
VACC has been informed that SRO and Treasury will formulate an in-depth set of guidance material for LMCTs. The timeline for the delivery of this information is yet to be determined, however at the Treasurer's request, VADA members will be asked to provide data (to VACC) at the end of Q3 and Q4, highlighting the impact of new super-luxury duty on LMCTs.
VACC will actively pursue duty exemptions for fitment of aftermarket parts and accessories.
See related VACC news story: Service Demonstrator Vehicles exempt from Duty