1. Luxury Car Tax

2. What is Luxury Car Tax (LCT)?
LCT is a tax imposed on the GST-inclusive value of the ‘luxury’ cars over the LCT threshold
2015/16 thresholds:
Non fuel efficient car $63,184
Fuel Efficient car $75,375(fuel consumption below 7 litres per 100 km)

3. 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

4. When does luxury car tax apply?
From a car buyer’s point of view, luxury car tax is payable on a vehicle
When it is purchased from a dealership
The vehicle is less than 2 years old
Vehicles price (including GST, ecxluding stamp duty & rego exceeds the luxury car tax threshold

5. 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)

6. Who collects and pays LCT?
LCT is payable on all taxable supplies or taxable importations of luxury cars
Any business who makes a taxable supply of a luxury car must fill in Box 1E on the BAS

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

8. How to calculate LCT?
Calculate the car’s supply price(including Gst, excluding government charges stamp duty, rego)
Calculate value of supply price exceeding the LCT threshold
Exclude the GST payable form this value
Multiply this GST exclusive value by the LCT Rate

9. Example Kirk sells a non-fuel efficient car
worth $89,999 incl GST, but before LCT
Value above threshold $89, = $ 26815
Exclude GST *10/11= $24377
Calculate LCT * 33%= $8044

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