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.
LCT is also payable if you’re an endorsed public institution and you purchase a luxury car locally. An endorsed public institution refers to a museum, gallery or library that is registered for GST and endorsed as a deductible gift recipient. However, if the luxury car is a work of art or a collectors piece and is purchased for the sole purpose of public display, you don't need to pay LCT and can claim a refund at label 1F on your BAS for the LCT paid for the luxury car.
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See alsoInformation on when luxury car tax (LCT) applies.