Treasury Laws Amendment (Tax Incentives and Integrity) 2024

# Treasury Laws Amendment (Tax Incentives and Integrity) 2024 ## What it does This bill makes three changes to how Australia's tax system works. It raises the luxury car tax threshold (the price point that triggers the tax) from around $75,000 to $80,567, and tightens the fuel-efficiency exemption so that only cars using 3.5 litres per 100km or less qualify for a discount instead of 7 litres. It also gives the tax office more time to hold onto refunds before notifying taxpayers. ## Why it matters If you're buying an expensive car, you'll pay luxury car tax on a smaller slice of the price—so it's a modest relief for luxury vehicle purchases. But it's paired with stricter rules that make fewer "thirsty" cars eligible for tax breaks, meaning the overall tax take stays roughly the same while the rules become simpler. ## Key details - **The threshold increases to $80,567** for the 2024-25 financial year and then automatically adjusts upward each year based on inflation - **Fuel efficiency bar tightens** from 7 litres per 100km down to 3.5 litres—most modern cars will now miss out on the fuel-efficient vehicle discount - **The changes kick in** on the first quarter-end date (1 Jan/Apr/Jul/Oct) after the bill gets royal assent, so there's a transition window built in

🔒 Voting closed — this bill has been decided by parliament