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).
Subscribe
