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When luxury car tax doesn't apply

Information on when luxury car tax (LCT) doesn't apply.

Last updated 15 April 2024


LCT doesn't apply:

  • where the recipient has quoted an ABN in the approved format
  • to a car that has not been imported and was manufactured more than 2 years before the supply
  • where the car was imported more than 2 years before the supply
  • to a car exported as a GST-free export
  • to a car that is (or is intended to be) registered for use as an emergency vehicle such as an ambulance, firefighting vehicle, police vehicle, or search and rescue vehicle
  • to a motor home or campervan, or a commercial vehicle designed mainly for carrying goods and not passengers – see LCTD 2023/1 Luxury car tax: how to determine the principal purpose of a vehicle for more information
  • to modifications for people with a disability
  • to the LCT value that LCT has already been paid on
  • when an endorsed public institution (museum, gallery or library that is registered for GST and endorsed as a deductible gift recipient) either    
    • imports a car that is a work of art or collectors' piece for the sole purpose of public display
    • sells a car that was purchased as a work of art or collectors' piece for the sole purpose of public display to another endorsed public institution that also intends to use that car solely for public display

For information on imported and reimported cars, refer to Importing a luxury car.

Certification for emergency vehicles

If you supply an emergency vehicle, you must get a statement in the format shown below, from the purchaser. This is to certify that the vehicle will only be used as an emergency vehicle.

Example: statement to certify an emergency vehicle

A New Tax System (Luxury Car Tax) Regulations 2000

Certification to the Commissioner of Taxation

Acquisition of emergency vehicle

I hereby certify that this vehicle is a prescribed emergency vehicle to be used for emergency purposes and is not subject to luxury car tax.

Description of vehicle:

Emergency purpose of vehicle:

Date of acquisition:

Name of authorised person making this statement:

Name of entity or organisation:



End of example


You may be able to defer the payment of the LCT until a later transaction by quoting your ABN.

Luxury car tax applies to a car purchased by a person with a disability, but doesn't apply to certain modifications.