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Luxury car tax

Luxury car retailers, wholesalers and manufacturers must register for and pay luxury car tax (LCT).

Last updated 11 April 2021

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 Online services for businessExternal Link:

  • go to Profile, select Tax registrations
  • select Add
    • select Luxury car tax from the select registration drop down 
    • complete all the required fields on the page and select Next
    • review the registrations details, and if they are correct, tick the Declaration box and click submit

You can also register for LCT:

How to cancel your LCT registration

You can cancel your registration for LCT:

  • online through Online services for businessExternal Link
    • go to Profile, then Tax registrations
    • click cancel on the Luxury car tax Line
    • complete all the required fields on the page and select Next
    • review the cancellation details - you can make any changes or stop the cancellation here
    • tick the declaration box and click submit.
  • 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.