Luxury car tax rate
If you are an individual or business that sells or imports a car that has a GST-inclusive value above the luxury car tax (LCT) threshold, you must pay luxury car tax.
The current LCT rate is 33% and only applies to the amount that is over the threshold.
Luxury car tax thresholds
The threshold that applies to you will depend on the financial year your luxury car was imported, acquired or sold. In general, the LCT value of a car includes the value of any parts, accessories or attachments you supplied, or imported, at the same time as the car.
LCT thresholds
Up to date rates with the ATO are available here.
The Treasury Laws Amendment (Tax Incentives and Integrity) Act 2025 has seen the government make changes to the definition of a fuel-efficient vehicle. They will also align the indexation rates applying to the thresholds for fuel-efficient vehicles and other vehicles. These changes will be applied from 1 July 2025.
The indexation factor for the 2024–25 financial year for:
fuel-efficient vehicles is 1.023
other vehicles is 1.047.
Find out the current and revised definitions of a fuel-efficient vehicle here.
For more information or assistance please contact Infinite Accounting Solutions on 02 9899 4730 or via the contact page at www.ias-ca.com.au.