INEOS Grenadier exempt from LCT
ATO ruling shaves up to $15,000 from the rugged off-roader’s drive-away pricingAnyone thinking of buying a 2022 INEOS Grenadier will be thrilled to hear the rugged off-road SUV has been exempt from Luxury Car Tax (LCT), saving customers between $4000-$15,000 depending on the variant and state of purchase.
The savings will all be found in the final drive-away prices of the vehicles rather than the list prices, which remain unchanged, with a reduction in stamp duty also helping the cause.
According to INEOS Automotive Australia, the brand worked with the Australian Tax Office (ATO) on a private ruling to exempt the Grenadier from the LCT – which applies to all vehicles with a list price of more than $71,849 – on account of its “design, engineering and capability”.
In INEOS’ eyes, that’s what accounts for the bulk of the $84,500 starting price rather than the standard equipment, which borders on sparse in lower grades compared to similarly priced competition.
“The ATO has recognised that due to the Grenadier’s design, engineering and capability, it is not considered a Luxury Car for tax purposes and therefore all Wagon models, options and accessories are exempt from LCT,” the brand said yesterday in a customer communication.
“Our configurator has been updated to reflect this decision, so please explore the Grenadier’s latest drive away pricing.”
For those who might not be familiar with the LCT, it’s a tax on new vehicles priced over $71,849, charged at the rate of 33 per cent on the amount above that threshold.
What does that mean or translate to in the context of the Grenadier?
The base Grenadier utility wagon costs $84,500 plus on-road costs; $12,651 above the previously mentioned threshold.
So in addition to all of the on-road costs including stamp duty, customers would normally have paid an extra $4175 in tax – more as they move up the model range, with the buyers of top-shelf variants previously forced to pay about $15,000 in tax.
Now they won’t have to following this landmark ATO ruling.
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