Luxury car tax (LCT)
Luxury car tax (LCT) applies to all supplies and importations of luxury cars where the value (including GST) exceeds the LCT threshold. The value generally also includes the price paid for accessories and modifications made to the car before delivery.
Cars with a value higher than the current LCT threshold are subject to a tax of 33% – this tax only applies to the portion of the car’s value that is above the threshold, not the total value of the car.
The LCT threshold is equal to the car limit, which is reviewed each financial year and may change.
Retailers, wholesalers and manufacturers of luxury cars may have a liability for LCT. Importers (including private buyers) also pay LCT.
Retailers, wholesalers and manufacturers of luxury cars must register for and pay luxury car tax.