DEFINITIONS & INTERPRETATIONS

The following definitions, interpretations and expressions shall apply to all Contracts, references
and business dealings with BID4U.

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Location Fee
        means a GST inclusive professional service fee, as outlined in the Fee Outline, charged by BID4U for providing the
        following professional services during the Exclusive Rights Authority period: 

  • Locating and bidding on a lot on a Client’s behalf, whether or not BID4U enters a bid or is the successful bidder, and includes entering into negotiations with the Auctioneer or seller, on the Client’s behalf, where BID4U is the under bidder; or,
  • Locating and negotiating the purchase of a lot with the Auctioneer on the Client’s behalf prior to auction; or,
  • Locating and negotiating the purchase of an item on the Client’s behalf with a seller, whether or not BID4U is able to successfully negotiate the purchase.

Where BID4U is the successful bidder or successfully negotiates the purchase of a lot or item on a Client’s  behalf a Success Fee, being a small percentage of the hammer price or purchase price, including GST, as outlined in the Fee Outline, will also be applied to each lot or item purchased.

Lot

means the number ascribed to a vehicle or item being auctioned.

Lot Description

means the description of the lot provided by the Auctioneer in the auction catalogue or in the Terms and Conditions of Sale.

Lot / Item Condition

means the condition of a lot or item as described in the auction catalogue or in the Terms and Conditions of Sale.

Lot Number

means an identification number ascribed by the Auctioneer to a lot in order to differentiate the lot from other lots at auction.  Most ascribed lot numbers are numerical, however, sometimes both numerical and alphabetical combinations are used, particularly when the two or more items are either very similar or form part of a pair or set that is being auctioned separately. 

For Example:  A foklift with a second set of tynes may be auctioned separately, and ascribed lot numbers; 100A and 100B respectively.

Lowest Possible Price

means any price, which BID4U considers appropriate to bid and/or negotiate for a lot and/or Price item, up to but not exceeding a Client’s Maximum Bid. 

Luxury Car Tax (LCT)

means Luxury Car Tax (LCT). LCT is a tax, collected by the Australian Taxation Office (ATO), on behalf of the Australian Government.

LCT was introduced on July 1, 2001 as a tax levied on luxury vehicles in addition to the GST to support the Australian car manufacturing industry. However, even though Australia no longer has a car manufacturing industry, the government has retained the LCT, to the detriment of the motor vehicle industry and the Australian public as a whole.

How is LCT Calculated

LCT is charged in addition to the Goods and Services Tax (GST), but is not payable on the full price of the vehicle by the purchaser. LCT is payable at the rate of 33% on the GST-inclusive value of the vehicle above the LCT threshold (which is revised annually by the ATO), including on the value of any parts, accessories or attachments supplied, imported, or sold at the same time as the vehicle. In other words, LCT is payable on the total GST-inclusive value of a new car including any accessories above the LCT thresholds. Government or statutory charges such as stamp duty, transfer fees and registration and third-party insurance, as well as extended warranties and finance costs are exempt for LCT calculation purposes.

LCT Thresholds

There are two LCT thresholds; one threshold for fuel-efficient vehicles, and the second threshold for all other vehicles. The LCT thresholds are revised annually by the ATO. See this ATO hyperlink to see the thresholds.

LCT - New Cars

LCT is payable on all new cars sold in Australia above the LCT threshold.

LCT - Pre-Owned or Second-Hand Cars

LCT does not apply to pre-owned vehicles manufactured in Australia that are more than two years old before the date of sale, unless the vehicle has increased in value. Or, viewed another way, LCT is payable on pre-owned vehicles manufactured in Australia less than two years old before the date of sale as well as on vehicles older than two years if they have increased in value. See this ATO hyperlink.

LCT - Imported Cars

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

Where LCT Does Not Apply

See this ATO Hyperlink for a full explanation of the circumstances where LCT does not apply.

Disclaimer

This material is provided for information purposes only and should not be construed as financial advice. You should always seek advice from your accountant for your particular circumstances. 

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These definitions and interpretations may be subject to review and change from time to time 


 

*MTA Member Bidding Service DL: 18363*