A New Tax System (Luxury Car Tax Imposition—Customs) Act 1999
Act No. 77 of 1999 as amended
This compilation was prepared on 13 October 2008
taking into account amendments up to Act No. 98 of 2008
The text of any of those amendments not in force
on that date is appended in the Notes section
The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section
Prepared by the Office of Legislative Drafting and Publishing,
Attorney‑General’s Department, Canberra
Contents
1 Short title [see Note 1]...........................
2 Commencement...............................
3 Imposition..................................
4 Rate......................................
5 Act does not impose a tax on property of a State............
Notes
An Act to implement A New Tax System by imposing a luxury car tax, so far as that tax is a duty of customs
1 Short title [see Note 1]
This Act may be cited as the A New Tax System (Luxury Car Tax Imposition—Customs) Act 1999.
2 Commencement
This Act commences on 1 July 2000.
3 Imposition
(1) The tax that is payable under the A New Tax System (Luxury Car Tax) Act 1999 is imposed by this section under the name of luxury car tax.
(2) This section imposes luxury car tax only so far as that tax is a duty of customs within the meaning of section 55 of the Constitution.
4 Rate
The rate of luxury car tax payable under the A New Tax System (Luxury Car Tax) Act 1999 is 33%.
Note: Luxury car tax is only calculated on the value of the car that exceeds the luxury car tax threshold in that Act.
5 Act does not impose a tax on property of a State
(1) This Act does not impose a tax on property of any kind belonging to a State.
(2) Property of any kind belonging to a State has the same meaning as in section 114 of the Constitution.
Notes to the A New Tax System (Luxury Car Tax Imposition—Customs) Act 1999
Note 1
The A New Tax System (Luxury Car Tax Imposition—Customs) Act 1999 as shown in this compilation comprises Act No. 77, 1999 amended as indicated in the Tables below.
For all relevant information pertaining to application, saving or transitional provisions see Table A.
Table of Acts
Act | Number
and year | Date
of Assent | Date of commencement | Application, saving or transitional provisions |
A New Tax System (Luxury Car Tax Imposition—Customs) Act 1999 | 77, 1999 | 8 July 1999 | 1 July 2000 | |
A New Tax System (Luxury Car Tax Imposition—Customs) Amendment Act 2008 | 98, 2008 | 3 Oct 2008 | Schedule 1: (a)
Remainder: Royal Assent | Sch. 1 (item 2) |
|
(a) Subsection 2(1) (item 2) of the A New Tax System (Luxury Car Tax Imposition—Customs) Amendment Act 2008 provides as follows:
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information |
Column 1 | Column 2 | Column 3 |
Provision(s) | Commencement | Date/Details |
2. Schedule 1 | Immediately after the commencement of the Tax Laws Amendment (Luxury Car Tax) Act 2008. | 3 October 2008 |
Table of Amendments
ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted |
Provision affected | How affected |
S. 4.................... | am. No. 98, 2008 |
Table A
Application, saving or transitional provisions
A New Tax System (Luxury Car Tax Imposition—Customs) Amendment Act 2008 (No. 98, 2008)
Schedule 1
2 Application
The amendment made by this Schedule applies to taxable supplies of luxury cars and taxable importations of luxury cars on or after 1 July 2008.
Overview
The A New Tax System (Luxury Car Tax Imposition—Customs) Act 1999 was enacted to implement a luxury car tax as part of Australia's new tax system. This Act was introduced to address the need for a specific tax on luxury cars, which are defined as cars with a value exceeding a certain threshold. The Act was enacted by the Commonwealth Parliament and the policy objective was to ensure that high-value luxury cars contribute appropriately to the national revenue. The tax is imposed on the importation of luxury cars and is calculated at a rate of 33%, applicable to the value of the car that exceeds the luxury car tax threshold set out in the A New Tax System (Luxury Car Tax) Act 1999. The Act also explicitly states that it does not impose a tax on property belonging to any State, thus respecting the constitutional immunity of State property.
Scope and Application
The A New Tax System (Luxury Car Tax Imposition—Customs) Act 1999 applies to the imposition of luxury car tax on the importation of luxury cars as a duty of customs. This Act specifically addresses the imposition and rate of the luxury car tax, which is set at 33% as per the A New Tax System (Luxury Car Tax) Act 1999. The tax applies to the value of the car that exceeds the luxury car tax threshold specified in the aforementioned Act. Notably, this Act does not impose a tax on property of any kind belonging to a State, as defined in section 114 of the Constitution. The application of this Act extends to the Commonwealth and is enforced through customs duties. The Act was amended by the A New Tax System (Luxury Car Tax Imposition—Customs) Amendment Act 2008, which applied to taxable supplies and importations of luxury cars from 1 July 2008.
Key Provisions
The A New Tax System (Luxury Car Tax Imposition—Customs) Act 1999 (sections 3 and 4) imposes a luxury car tax on luxury cars under the name of luxury car tax, and sets the rate at 33%. The tax is imposed as a duty of customs, as per section 55 of the Constitution. It is crucial to note that this tax is applied only to the portion of the car's value that exceeds the luxury car tax threshold specified in the A New Tax System (Luxury Car Tax) Act 1999. This means that not all cars are subject to the luxury car tax; only those that fall above the prescribed threshold value will incur this tax.
The Act (section 5) explicitly states that it does not impose a tax on property belonging to a State, aligning with the definition of State property as outlined in section 114 of the Constitution. This distinction ensures that State-owned assets are exempt from the luxury car tax, clarifying the scope and application of the tax.
Under the Act, several obligations are placed on the parties or entities it governs. Importers, manufacturers, and dealers of luxury cars must ensure that the luxury car tax is correctly calculated and paid on any taxable importations or supplies of luxury cars. This obligation extends to providing accurate information and documentation to the relevant authorities to substantiate the taxable value of the cars and the tax liability. The onus is on these entities to comply with the tax provisions and maintain proper records to demonstrate compliance.
For breaches of the Act, there can be significant consequences. While the specific penalties are not detailed within the Act itself, the broader legislative framework under which the A New Tax System operates typically includes provisions for both civil and criminal penalties. These may include fines for non-compliance, which can be substantial depending on the severity and intent of the breach. Additionally, persistent or egregious violations could lead to criminal charges, resulting in further penalties such as imprisonment. The exact penalties would be determined by the courts, taking into account the specific circumstances of the case and relevant sentencing guidelines.