1. Presentation Heading
Subheading

2. Luxury Car Tax

3. What is Luxury Car Tax (LCT)?
LCT is a tax imposed on the GST-inclusive value of the ‘luxury’ cars over the LCT threshold
2012/13 thresholds:
Non fuel efficient car $59133
Fuel Efficient car $75,375(fuel consumption below 7 litres per 100 km)

4. What is a Luxury Car?
A motor powered road vehicle that is designed to carry:
a load < 2 tonnes
< 9 passengers
And includes
Passenger cars
station wagons
4 wheel drives
Limousines

5. Who is Liable for LCT? You must pay LCT if you :
Are registered for GST and
Sell a luxury car

6. How much LCT? If vehicle delivered BEFORE 1 July 2008 25%
If vehicle delivered AFTER 3 October %

7. Cars not subject to LCT If above the threshold but:
Manufactured in Aust > 2 years before supply
An emergency vehicle
If fitted out and purchased for a person with a disability
A motor home or campervan
A commercial vehicle (designed to carry goods)

8. (LST value – LCT threshold) x 10/11 x 33%
How is LCT calculated?
(LST value – LCT threshold) x 10/11 x 33%
LCT value includes :
*GST *delivery charges *standard warranties
It does not include:
*CTP *finance costs *extended warranties
*Any other Australian taxes
eg Stamp Duty, transfer fees, registration

9. Example Kirk sells a non-fuel efficient car
worth $89,999 incl GST, but before LCT
Value above threshold $89, = $30866
Exclude GST *10/11= $28,060
Calculate LCT * 33%= $9259

10. McCoy sells a fuel efficient car
Example
McCoy sells a fuel efficient car
worth $102,149 incl GST & LCT
1. Exclude the GST (10%)& LCT (33%) from the amount above the threshold
Value above threshold 102, =26,774
Exclude GST & LCT 26,774/1.43=18,723
3. Calculate LCT $18723* 33%=6,178