The Australian distributor of the Ineos Grenadier four-wheel-drive has successfully lobbied for an exemption for Luxury Car Tax. The landmark ruling by the Australian Tax Office will deliver up to $18,000 in savings on certain models – and set an important precedent for other automotive brands.
The incoming 2023 Ineos Grenadier four-wheel drive will be exempt from Luxury Car Tax (LCT) in Australia – saving buyers thousands of dollars in on-road costs – after the Australian Tax Office ruled it is not a luxury vehicle.
Savings will equate to between $4174 and more than $18,000, depending on the vehicle’s specifications, options and accessories.
In an email sent to Australian customers this week, Ineos said it had been “working with the Australian Tax Office” and “due to the Grenadier’s design, engineering and capability, it is not considered a luxury car for tax purposes.”
“Therefore all wagon models, options and accessories are exempt from LCT.”
Fuel efficient and zero-emission vehicles have their own LCT threshold: $84,916.
The Luxury Car Tax rate of 33 per cent is applied on top of every dollar above the threshold, and as such has for years been criticised for being “a tax on a tax on a tax” when import duty and GST are included.
With a price range starting from $84,500 to $96,495 (before on-road costs), the Ineos Grenadier can cost in excess of $126,000 with every option ticked. In this case, owners will see savings of more than $18,000.
Toyota’s LandCruiser 70 Series wagon and Troop Carrier are also exempt from Luxury Car Tax, due to a ruling made more than a decade ago, several years after they had been on sale. (The Toyota LandCruiser 70 Series ute has never been subject to LCT because it is a pick-up).
However, the Ineos Grenadier is believed to be the first “borderline” vehicle – which eclipsed the LCT price threshold, and therefore the ruling could have gone either way – to be introduced with a Luxury Car Tax exemption.
Sam Purcell has been writing about cars, four-wheel driving and camping since 2013, and obsessed with anything that goes brum-brum longer than he can remember. Sam joined the team at CarAdvice/Drive as the off-road Editor in 2018, after cutting his teeth at Unsealed 4X4 and Pat Callinan’s 4X4 Adventures.