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Intuit

Luxury Car Tax (LCT) and BAS

In March 2018 QuickBooks will start rolling out a new GST experience. This will happen gradually over a period of time. If you can see the View reports menu when you are on the GST centre main page, you are in the classic experience, and if you can see Run Reports menu, you are on the updated experience.

What is Luxury Car Tax (LCT)?

Luxury Car Tax (LCT) is a tax on cars with a GST-inclusive value above the LCT threshold at a rate of 33%.

LCT is paid by businesses that sell or import luxury cars (dealers), and also by individuals who import luxury cars.

LCT is paid based on the same period required for GST reporting, which in QuickBooks is usually the Business Activity Statement (BAS).

Luxury Car Tax is not determined by QuickBooks, so reportable amounts have to be determined manually or another fashion.

For more information about Luxury Car Tax, please consult a tax professional and explore the ATO website links below:

https://www.ato.gov.au/Business/Luxury-car-tax/​
https://www.ato.gov.au/Business/Business-activity-statements-(BAS)/In-detail/Instructions/LCT---how-...

LCT in Classic GST Centre

When FBT is enabled in GST Settings, your BAS form will include a Luxury Car Tax line under Amounts you owe the tax office, and a Luxury Car Tax refundable line under Amounts the tax office owes you.

Including LCT amounts on your BAS is done by recording adjustments on the required line. Adjustment transactions recorded on line 1E or 1F will increase or decrease the balance transferred to BAS suspense upon lodgement.

Any adjustments created will also be listed in the related section of the GST Detail report for that period. Adjustment transactions cannot be changed, only deleted.

To include Luxury Car tax amounts owed on your BAS, record an adjustment on line 1E by clicking the blue Record link on the far right. Include the amount to pay under Adjustment amount, select the Adjustment account, check the Adjustment date and add any memo details as required. Once you Save the adjustment, the amount you owe will then display on your BAS.

To include Luxury Car Tax refundable amounts, repeat the same process as above to record and adjustment on line 1F.

LCT in Updated GST Centre

When LCT is enabled in GST settings, QuickBooks will create a LCT liabilities account, and include LCT inside the BAS lodgement flow after you review GST.

To include an LCT amount to be paid, input the amount under Luxury Car Tax amount during the Other taxes filing stage of your BAS.

Tick the I need to include a refund amount if you need to report a refund amount.

When your activity statement is lodged, QuickBooks will automatically write a journal entry against the Luxury Car Tax Liabilities payable and the ATO Clearing Account.