• When LCT applies

    Generally, you're required to pay LCT if you're registered or required to be registered for GST and you sell or import a luxury car – this includes retailers, wholesalers, manufacturers and other businesses that sell luxury cars.

    You also have to pay LCT if you're an individual (private buyer) who imports a luxury car.

    LCT applies to sales of cars that are two years old or less.

    A car is more than two years old at the time of supply if it was manufactured locally or imported more than two years previously.

    For LCT purposes, a car is a motor vehicle (but not a motorcycle) designed to carry a load of less than two tonnes and fewer than nine passengers. A limousine is classified as a car, regardless of the number of passengers it's designed to carry.

    LCT applies to a car purchased by a person with a disability even if the car is GST-free. However, disability-related modifications are not subject to LCT.

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    Last modified: 08 Jan 2016QC 22095