The new rate compares with the current rate of $67,525. The new rate for 2020-21 for fuel efficient vehicles has also lifted and will be $77,565, up $2039 or 2.63 per cent.
The new thresholds apply to applicable vehicles delivered during the financial year that start on July 1, 2020.
The Victorian Automobile Chamber of Commerce (VACC) said there was no announcement on how this new LCT threshold affects the Victorian super luxury duty threshold.
The chamber said that it thought it was surprising that the Victorian State Revenue Office (SRO) – which administers the duty – had made no announcement as yet as to the threshold for 2020-21.
The VACC said it has consulted with the SRO and was advised that the SRO will be issuing industry guidance to reflect the change to the SLD threshold so it is in line with the LCT threshold.
This guidance will be publicised when released by the SRO.
VACC said that the dealers who have negotiated a deal at the old rate for a new car being registered after June 30, 2020 need to factor inthe change.
“If you are using VACC ‘New and/or Used Car Contracts of Sale’, Sections 2(a) and 2(b) make an allowance for an increase in the amount of LCT and stamp duty (or any other tax payable) in respect of the motor vehicle between the date of the contract and the date of delivery,” the chamber said.
“Under these or similar terms and conditions, you can pass on the increase to the purchaser.
“These sections also make the requirement to use reasonable endeavours to advise the purchaser of the increase in duty as soon as reasonably practicable. Advising the purchaser of this well before delivery is recommended.”
The VACC said dealers are advised to adapt changes to any dealer management systems (DMS) to reflect the change.
“If you have further queries you should consult your own financial or taxation advisor,” it said.
By Neil Dowling
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