Australia: Senate Committee report on bill to amend fuel-efficient vehicle definition under luxury car tax, deny deductions for interest charges on tax debts
The Committee recommends that bill be passed.
The Senate Economics Legislation Committee released its report on the Treasury Laws Amendment (Tax Incentives and Integrity) Bill 2024 which would:
- Reduce the maximum fuel consumption for a car to be considered fuel-efficient for purposes of the luxury car tax (LCT) to 3.5 litres/100 kilometres (from the current 7 litres/100 kilometres)
- Deny income tax deductions for amounts of general interest charge (GIC) and shortfall interest charge (SIC) incurred by taxpayers
- Extend from 14 to 30 days the period within which the Commissioner for Taxation must notify a taxpayer of their decision to retain a refund amount arising from a business activity statement (BAS), or another notification under those provisions, for verification of information
The Committee recommends that the bill be passed.