Q: Do I need an LMCT Licence?
A: “LMCT” stands for “Licenced Motor Car Trader”, and is the official designation used in the State of Victoria.
According to Consumer Affairs Victoria, “Generally, if you deal in four or more cars per year, you need a licence. In some circumstances, you need a licence if you deal in fewer than four cars.”
Also, “If you don’t hold a motor car trader’s licence, while carrying on a business of trading in motor cars, you may be subject to a criminal penalty.”
It is important to note that you can be deemed to be carrying on a business of trading in motor cars even if you don’t think you are in the business of trading in motor cars – the burden of proof is on you to definitively show that you’re not.
For exceptions to these rules, see here.
Q: Why come to us for your LMCT Application instead of doing it yourself?
A: The LMCT application process can be a daunting one, as it requires reams of paperwork. We offer a service that minimises your stress and saves you a serious amount of time. As qualified Tax Agents and Public Accountants, we are in an excellent position to satisfy all of the requirements of the LMCT application process. This includes:
- Ensuring that you have all relevant documents (including bank statements, lease agreements, letters from council, various forms of identification, consent to national criminal history, indemnity forms, trust deeds, spouse details etc.) from the very beginning of the process. This is critical, because the online form has a short period during which it must be completed. If you are missing a document, not only will it delay the entire process, it risks having to start from the very beginning.
- Preparing your financial accounts, as well as your cash flow statement and business plan.
- Certifying your identification documents
- Working with you to ensure that the facts and figures presented in your application are realistic, viable, and likely to lead to LMCT approval.
- Setting up any necessary business names, companies, trusts, or any other required business structures.
- Following up with the Business Licencing Authority to ensure that everything is going as planned.
- Preparing you for your test…
Q: A test?
A: Yes. After the application, you will be contacted by the Business Licencing Authority and given a test about how well you know your statutory responsibilities. We will work with you to prepare you for this, and maximise your chance of success.
Q: How long will the LMCT application process take?
A: After all the forms are submitted, the wait may be a few weeks to a few months. This generally depends on whether the forms were filled out correctly, and whether the Business Licencing Authority has to scrutinise your LMCT application or ask for further details. If the LMCT Application is filled out properly, while it may not guarantee a short turnaround, it moves the odds in your favour. Given that you can’t trade until you are certified, it pays to get it done right the first time.
Q: How much does the LMCT application cost?
At the time of writing (2018), the LMCT application fee itself is $991.30, while the first year of licencing is $1489.80. Regarding our fees for preparation of your LMCT application, this will depend on your specific circumstances (eg. whether you are a company or an individual), and what other services we may need to perform as part of the process. To find out more, please contact us directly.
Q: What if I fail?
A: According to Consumer Affairs Victoria,”If the BLA (Business Licencing Authority) refuses your application, you cannot trade as a motor car trader and you cannot lodge another application for two years, unless you get special permission from us.”
Also, you will forfeit your $991.30 application fee.
Given the significant investment you are making in your LMCT Application, as well as the risk of not being able to trade for 2 years, it makes sense to engage professionals in order to maximise your chances of approval.
Q: You’re far away. Do I need to be there in person?
A: No, you don’t need to come to our office, but it would help. If you are too far away to make it, then that will mean that you will need your documents certified elsewhere, and that you’ll need to have a scanner handy for sending your signature, and other documents.
Q: Who are we and what kind of services do we offer?
A: LMCT Application Services is an extension of K&K Accounting Services Pty Ltd. We also offer tax return preparation, tax advice, preparation of financial accounts, and business name, company, and trust registration.