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Non-Profit News Service No. 0221 - Luxury car tax changes

From 1 July 2008, a 33% luxury car tax (LCT) rate applies to most vehicles over the luxury car tax threshold. This threshold is $57,180 for the 2008-09 financial year.

For cars purchased over this amount, the maximum goods and services tax (GST) credit your organisation can claim is $5,198.

A number of new concessions in addition to the existing LCT concessions are now also available including:

primary producers and tourist operators (in some circumstances) can claim refunds of the additional LCT on certain cars up to a maximum of $3,000 per car.
the LCT payable will remain at 25% for contracts to purchase or import a luxury cars made before 7.30pm Australian Eastern Standard Time (AEST) on 13 May 2008, regardless of when the vehicle is delivered.
from 3 October 2008, luxury car tax does not apply to fuel efficient cars under $75,000 for the 2008-09 year.

For more information on the recent LCT changes, you can refer to Luxury car tax.

Note: this reference was withdrawn in October 2009, you can now find this information in:

Luxury car tax (NAT 3394),
GST and LCT on cars - for primary producers and tourism operators (NAT 72601).

Last Modified: Wednesday, 29 October 2008

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