Luxury cars and the LCT threshold
A luxury car is a car with a GST-inclusive value above the LCT threshold, which in 2012-13 is:
- $75,375 for fuel-efficient cars
- $59,133 for other cars.
What is a luxury car?
Under LCT law, a car is a motor-powered road vehicle that is designed to carry both of the following:
- a load of less than two tonnes, and
- less than nine passengers.
It includes:
- passenger cars
- station wagons
- four-wheel drive vehicles.
Limousines, regardless of the number of passengers they are designed to carry, are also cars under LCT law.
The term 'car' doesn't include:
- trucks and vans designed to carry a load of more than two tonnes
- vehicles, such as buses, designed to carry nine or more passengers
- motorcycles or similar vehicles
- racing and rally cars that are not road vehicles and cannot be registered for use on public roads in any country in the world. These racing or rally cars are designed for use only on rally or racing circuits.
The LCT threshold
The LCT threshold is $59,133 for the 2012-13 financial year.
The LCT threshold for fuel-efficient cars is $75,375 for the 2012-13 financial year. For LCT purposes, fuel-efficient cars are cars that have a fuel consumption of seven litres per 100 kilometres or less.
These thresholds are reviewed each financial year and may change.
In general, the value of a car includes the value of any parts, accessories or attachments supplied with the car or imported at the same time as the car.
Sections within Working out when LCT applies
Last Modified: Friday, 27 July 2012