The Ineos Grenadier four-wheel drive wagon has received a luxury car tax (LCT) exemption, saving prospective buyers between (roughly) $4000 and about $15,000 depending on how they configure their vehicle.
The startup today issued a note to those who’d placed pre-orders, saying it has “been working with the Australian Tax Office on a Private Ruling” to exempt its new workhorse from the LCT.
“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,” it added.
Cars priced above $71,849 (or $84,916 if deemed fuel efficient) attract an LCT rate above said threshold of 33 per cent, paid by the dealer and passed on to consumers.
Ineos Australia has since updated its configurator, and the LCT removal applies to both two- and five-seat versions. Removing LCT cut more than $4000 from a base Grenadier on the configurator, and more than $14,000 from a top-spec model with all accessories added.
On another regulatory topic, the Grenadier’s 3550kg GVM places it into the NB1 medium goods vehicle category, meaning it avoids a 5 per cent import duty. Being made in France, it would otherwise be hit given Australia and the EU have no free-trade agreement.
NB1 vehicles also aren’t subject to ANCAP testing – ideal for Ineos given it does not fit all driver-assist features required for the maximum score, which some fleets require – and ADR 85/00 side impact regulations, though all Grenadiers have side and curtain airbags regardless.
Background
Ineos Automotive this April delivered on its promised $84,500 (before on-road costs) price point for the base Grenadier – a clean-sheet spiritual successor to the original Land Rover Defender.
It also kept its promises to charge a modest $1000 premium for the five-seat Station Wagon over the two-seater Utility Wagon, and remains committed to helping owners who prefer DIY maintenance. It also promises a dual-cab ute will come in time.
There will be three spec levels: the base entry point, more hardcore Trailmaster, and more luxurious Fieldmaster. There’s also an options and accessories list as long as your arm.
Order books opened May 18, with Australia currently a top-three global market for reservation holders. When first models arrive in late 2022, they’ll line up against the iconic Toyota LandCruiser 70 Series family, its closest contemporary.
The Grenadier is the brainchild of Sir Jim Ratcliffe, the British billionaire engineer and chairman of multinational petrochemical giant Ineos. No expense has been spared on his passion project.
The official story says Ratcliffe was hanging out in London’s Grenadier pub in 2017, bemoaning Land Rover’s decision to kill the old Defender and replace it with the more modern and luxurious new SUV model.
Ineos Automotive Australia will be a factory-backed operation rather than an independent licensed distributor, with Australia considered an important launch market with a large audience of “hand-raising” workers and recreation lovers lining up and engaging already.
The company will support the launch of its rugged 4×4 in Australia with 28 retail sites, many of which will fittingly be based in areas beyond the city limits. Among the launch partners are dealer groups, but also 4×4 specialists and even agricultural equipment dealers.
The company has appointed Justin Hocevar to head up its Asia-Pacific operations, who previously ran Mini Australia and Renault Australia, and was a senior executive at Jaguar Land Rover and BMW Motorrad.
Production Grenadiers are going to be built at an old 210,000 square-metre Mercedes-Benz (Smart) plant in Hambach, France, since purchased by Ineos. Since 2019 the plant has received a claimed $770 million AUD in upgrades, funded by both Mercedes-Benz and Ineos.
The bespoke development vehicles were built by Magna in Austria, and underwent a widely covered and public torture-testing program.
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