Latest Financial Planning News

Hot Issues
Women still outpacing men in SMSF establishments
Economic and market outlook for 2025: Global summary
Preparing to lodge quarterly January TBAR
How to overcome your investment fears
Navigating the outcome of the U.S. election
Divorce doesn’t alter contribution rules
$3m super tax officially abandoned for this year
Top 20 Most Watched Christmas Movies ever - pre covid
A Unique Advent Calendar
ATO reviewing all new SMSF registrations to stop illegal early access
Compliance documents crucial for SMSFs
Investment and economic outlook, October 2024
Leaving super to an estate makes more tax sense, says expert
Be clear on TBA pension impact
Caregiving can have a retirement sting
The biggest assets growth areas for SMSFs
20 Years of Silicon Valley Trends: 2004 - 2024 Insights
Investment and economic outlook, September 2024
Economic slowdown drives mixed reporting season
ATO stats show continued growth in SMSF sector
What are the government’s intentions with negative gearing?
A new day for Federal Reserve policy
Age pension fails to meet retirement needs
ASIC extends reportable situations relief and personal advice record-keeping requirements
The Leaders Who Refused to Step Down 1939 - 2024
ATO encourages trustees to use voluntary disclosure service
Beware of terminal illness payout time frame
Capital losses can help reduce NALI
Investment and economic outlook, August 2024
What the Reserve Bank’s rates stance means for property borrowers
Articles archive
Quarter 3 July - September 2024
Quarter 2 April - June 2024
Quarter 1 January - March 2024
Quarter 4 October - December 2023
Quarter 3 July - September 2023
Quarter 2 April - June 2023
Quarter 1 January - March 2023
Quarter 4 October - December 2022
Quarter 3 July - September 2022
Quarter 2 April - June 2022
Quarter 1 January - March 2022
Quarter 4 October - December 2021
Quarter 3 July - September 2021
Quarter 2 April - June 2021
Quarter 1 January - March 2021
Quarter 4 October - December 2020
Quarter 3 July - September 2020
Quarter 2 April - June 2020
Quarter 1 January - March 2020
Quarter 4 October - December 2019
Quarter 3 July - September 2019
Quarter 2 April - June 2019
Quarter 1 January - March 2019
Quarter 4 October - December 2018
Quarter 3 July - September 2018
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 3 July - September 2014
Quarter 2 April - June 2014
Quarter 1 January - March 2014
Quarter 4 October - December 2013
Quarter 3 July - September 2013
Quarter 2 April - June 2013
Quarter 1 January - March 2013
Quarter 4 October - December 2012
Quarter 3 July - September 2012
Quarter 2 April - June 2012
Quarter 1 January - March 2012
Quarter 4 October - December 2011
Quarter 3 July - September 2011
Quarter 2 April - June 2011
Quarter 1 January - March 2011
Quarter 4 October - December 2010
Quarter 3 July - September 2010
Quarter 2 April - June 2010
Quarter 1 January - March 2010
Quarter 4 October - December 2009
Quarter 3 July - September 2009
Quarter 2 April - June 2009
Quarter 1 January - March 2009
Quarter 4 October - December 2008
Quarter 3 July - September 2008
Quarter 2 April - June 2008
Quarter 1 January - March 2008
Quarter 4 October - December 2007
Quarter 3 July - September 2007
Quarter 2 April - June 2007
Quarter 1 January - March 2007
Quarter 4 October - December 2006
Government releases details on luxury car tax changes

 

The draft legislation aims to modernise the luxury car tax by tightening the definition of a fuel-efficient vehicle and adjusting the indexation rate.



.


The government has released draft legislation to update the luxury car tax (LCT) after previously announcing it would tighten the definition of a fuel-efficient vehicle and align the indexation rate for LCT thresholds.


The changes will be in effect from 1 July 2025, the government said.


There are currently two thresholds for the LCT which include a higher threshold that applies to fuel-efficient vehicles and a lower threshold that applies to all other luxury vehicles.


The new amendment will update the definition of a fuel-efficient car by reducing the maximum fuel consumption for a car to be considered fuel-efficient for the LCT to 3.5 litres per 100 kilometres from the current seven litres per 100 kilometres.


The aim behind tightening the definition of a fuel-efficient vehicle is to ensure only electric, or partially electric vehicles can use the higher threshold of the LCT.


The government said this amendment will “incentivise” the uptake of electric or partially electric vehicles.


The LCT amendment will also see a change in the index number used to index the LCT threshold from all groups CPI to the motor vehicle purchase sub-group of the CPI.


The higher threshold that applies to fuel-efficient luxury cars is known as the fuel-efficient car limit and is indexed annually using the index number for the motor vehicle purchase sub-group of the CPI.


The lower threshold that applies to all other luxury cars is indexed annually using the index number of the all groups CPI.


The government said it is seeking to change this as the indexation rates haven’t grown at the same pace and have instead converged.


“At the time of its introduction in 2008, the fuel-efficient limit was set at $75,000, whilst the LCT threshold for all-other luxury cars was $57,180,” the government said.


“Since then, there has been weaker growth in the motor vehicles sub-group of CPI compared to all groups CPI which has caused the differential between these two thresholds to narrow.”


“For the 2024-25 financial year, the fuel-efficient cars threshold sits at $91,387, whilst the threshold for all-other luxury cars is at $80,567.”


The government said this amendment will aim to align these indexation rates to ensure that LCT thresholds grow at the same pace, ensuring the concessional LCT treatment for fuel-efficient vehicles is maintained.


By encouraging the uptake of fuel-efficient vehicles, various Australian government strategies will also be supported, including the National Electric Vehicle Strategy, the commitment to reduce greenhouse gas emissions by 43 per cent by 2030, and the commitment to achieve net zero emissions by 2050.


 


 


 


 


Imogen Wilson
24 September 2024
accountantsdaily.com.au




5th-September-2024