Luxury car tax (LCT) applies to certain vehicles over the luxury car tax threshold ($57,180 for the 2008–09 year).
The Government announced in the 2008–09 Budget that it would increase the LCT rate from 25% to 33% from 1 July 2008.
Legislation to increase the LCT rate from 1 July 2008 became law on 3 October 2008, and includes a number of concessions:
In certain circumstances primary producers and tourism operators will be able to claim a refund of the additional 8% LCT (to a maximum of $3,000) on certain 4 wheel drive or all wheel drive vehicles.
LCT will not apply to certain fuel efficient cars under the fuel efficient car limit ($75,000 for the 2008–09 year) from 3 October 2008. LCT at the rate of 33% will apply to vehicles above this threshold.
25% LCT will apply to contracts entered into for purchases or imports of a luxury car before 7.30pm Australian Eastern Standard Time (AEST) on 13 May 2008 (the date of the Federal Budget announcement to increase the LCT rate).
Advice for dealing with the luxury car tax legislation, and information on refunds for primary producers and tourism operators can be found in Luxury car tax changes.
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