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  • Luxury car tax

    Luxury car tax (LCT) applies to all supplies and importations of luxury cars where the GST-inclusive value exceeds the LCT threshold. The value generally also includes the value of any accessories, parts or attachments supplied, or imported, at the same time as the car.

    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 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.

    See also:

    How to register for LCT

    Your business must be registered for GST before you can register for LCT.

    You can register for LCT online through a Business PortalExternal Link message:

    • go to your Inbox, select 'New Message', then 'Registrations'
    • select 'WET, fuel tax credit, LCT registration' and add a message including the following:
      • type of registration you are applying for – 'luxury car tax'
      • the date you want registration to take effect
      • the date you did, or will, become involved in manufacturing, wholesaling, importing or retailing luxury cars
      • a description of your activity in the luxury car industry (for example, manufacturer, wholesaler, importer, retailer)
      • the percentage of your total activity each of these represent - manufacturer, wholesaler, importer and retailer
      • the estimated annual luxury car tax liability ($0 – $49,999, $50,000 – $99,999, $100,000 – $499,999, $500,000 – $5 million, more than $5 million)
      • whether you expect to have a LCT liability on every activity statement.
       

    You can also register for LCT:

    How to cancel your LCT registration

    You can cancel your registration for LCT:

    • online through a Business PortalExternal Link message
      • go to your Inbox, select 'New Message', then 'Registrations'
      • select 'Cancellation' and add a message including 'luxury car tax' and the date you want your registration to be cancelled
       
    • through your registered tax agent or BAS agent
    • by phone – if you're an authorised contact for the business, phone our business enquiries line
    • by lodging the Application to cancel registration (NAT 2955) form, which you can order using our online publication ordering service for businessExternal Link.
    Last modified: 06 Feb 2017QC 31787