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  • Calculating theoretical LCT payable

    We use VFACTS sales data for details on all new motor vehicle sales in Australia. To account for timing differences between the sales data and business activity statements (BAS), we compare June to May sales data with July to June LCT on the BAS. Data on vehicle sales with a recommended retail price of over $50,000 is extracted.

    Example of sales data from VFACTS reports

    Marque

    Model

    Grade

    Eng. cap.

    Body style

    Cyls

    Doors

    Fuel

    Trans

    Gears

    Total sales

    Audi

    Q5

    2

    1,968

    Wagon – with monocoque

    4

    4

    D

    A

    7

    757

    Audi

    Q5

    2

    1,984

    Wagon – with monocoque

    4

    4

    P

    A

    7

    578

    Audi

    Q5

    3

    2,967

    Wagon – with monocoque

    6

    4

    D

    A

    7

    677

    Audi

    Q5

    3

    2,995

    Wagon – with monocoque

    6

    4

    P

    A

    7

    105

    Audi

    SQ5

    3

    2,967

    Wagon – with monocoque

    6

    4

    D

    A

    7

    971

    Total

     

     

     

     

     

     

     

     

     

    3,088

    We compare the results with data on all vehicle registrations to determine the average price of each marque and model. The average price may be above or below the recommended retail price due to various factors, including:

    • the level of customisation added to the car
    • dealer discounts on the recommended retail price.

    The average price obtained from vehicle registration data includes GST, LCT, dealer delivery, fitted options and dealer discount for each vehicle. To cross-check for data errors and ensure the sold price is reasonable, we compare the recommended retail price with the sold price obtained from vehicle registration data.

    We also use the recommended retail price data to determine the fuel consumption for each vehicle type and which vehicles are subject to the fuel-efficiency threshold.3

    We use the following formula to determine theoretical LCT payable on the LCT-inclusive price from our benchmark data.4

    This image shows the equation for calculating theoretical LCT.

      Last modified: 05 Nov 2015QC 47278