Guide to activity statements

Luxury car tax (LCT)

LCT applies to cars with a GST-inclusive value exceeding the LCT threshold. LCT is payable in addition to GST, but it is not payable on the full value of the vehicle - it is payable on 33% of the GST-exclusive value that exceeds the LCT threshold.

LCT also applies to fuel-efficient vehicles that are above the fuel-efficient car limit.

Who needs to pay LCT and who can defer paying it?

You need to pay LCT on all luxury cars that you purchase or import, unless you intend to use it for certain 'quotable' purposes and quote your ABN in the approved format to the supplier (or Customs, in the case of importations).

Completing the LCT labels

You account for LCT when you complete your activity statement for GST, using the same tax period. You complete the LCT section of your activity statement using the following labels:

• 1E - Luxury car tax (tax payable)
• 1F - Luxury car tax refundable.

For more information about LCT, including the threshold for fuel-efficient and other cars, and how to work out when LCT applies, refer to Luxury car tax - home.

If you report and pay GST using a pre-printed GST instalment amount (option 3 on the activity statement), don't complete the LCT section of your activity statement. We have included your LCT in this amount. You must still report LCT payable (1E) and LCT refundable (1F) when lodging your Annual GST return. This is due at the same time as your income tax return.

If you report and pay GST annually (option 4), you don't have to report LCT on monthly or quarterly activity statements. You'll need to report LCT on your Annual GST return.

Sections within Luxury car tax (LCT)

• Who needs to pay LCT and who can defer paying it?
• Completing the LCT labels