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  • Methodology

    The LCT revenue gap is the theoretical LCT payable, minus the actual LCT payable.

    The theoretical LCT payable is estimated by:

    • analysing sales data for new vehicles (by make and model) from the Federal Chamber of Automotive Industries and state and territory motor registration offices. From the data set we determine sales of new vehicles subject to LCT (meeting LCT threshold and fuel consumption criteria)
    • applying the price of each make and model sold to determine the total value of vehicle sales subject to LCT. Prices are derived with reference to the price of new vehicles, provided by state and territory motor registration offices, cross checked against the published recommended retail prices of the vehicles
    • multiplying the data set by the appropriate LCT rate to obtain theoretical LCT payable.

    Actual LCT payable reported on the BAS is subtracted from theoretical LCT payable to derive the estimated LCT gap.

      Last modified: 13 Nov 2015QC 26611