Luxury car tax rate
Cars with a luxury car tax (LCT) value over the LCT threshold attract an LCT rate of 33%. You only pay LCT on the amount that is over the threshold.
For the LCT rate before 3 October 2008, refer to A New Tax System (Luxury Car Tax Imposition – General) Act 1999.
Luxury car tax thresholds
The following table lists the LCT thresholds for the financial year the car was imported, acquired or sold.
If you import or sell a car with a GST-inclusive value above these LCT thresholds, you must pay LCT except in certain circumstances. In general, the LCT value of a car includes the value of any parts, accessories or attachments you supplied, or imported, at the same time as the car.
From 1 July 2025, as part of the Treasury Laws Amendment (Tax Incentives and Integrity) Act 2025External Link, which amended A New Tax System (Luxury Car Tax) Act 1999:
- the definition of a fuel-efficient vehicle changed
- indexation rates applying to the thresholds for fuel-efficient vehicles and other vehicles was aligned.
Financial year | Fuel-efficient vehicles | Other vehicles |
|---|---|---|
2025–26 | $91,387 | $80,567 |
2024–25 | $91,387 | $80,567 |
2023–24 | $89,332 | $76,950 |
2022–23 | $84,916 | $71,849 |
2021–22 | $79,659 | $69,152 |
2020–21 | $77,565 | $68,740 |
2019–20 | $75,526 | $67,525 |
2018–19 | $75,526 | $66,331 |
2017–18 | $75,526 | $65,094 |
2016–17 | $75,526 | $64,132 |
2015–16 | $75,375 | $63,184 |
2014–15 | $75,375 | $61,884 |
2013–14 | $75,375 | $60,316 |
2012–13 | $75,375 | $59,133 |
The indexation factor for the 2025–26 financial year for:
- fuel-efficient vehicles is 0.997
- other vehicles is 0.997.
As the indexation factor for the 2025–26 financial year is less than 1, the LCT thresholds for fuel-efficient vehicles and other vehicles did not increase.
Find out what defines a fuel-efficient car prior to, and from, 1 July 2025.