Luxury car tax calculator
Find out how to calculate the luxury car tax you'll need to pay here.
The luxury car tax (LCT) is applied on cars above a certain value and is paid by businesses that sell or import luxury cars and individuals who import them. Use our guide below to figure out the LCT that is included in the overall price of a car or the size of LCT you will need to pay.
You need to pay
Luxury car tax rates and thresholds
The LCT changes depending on the year and fuel-efficiency of the vehicle, and is charged at 33% of the amount that is above the LCT threshold. The table below shows the yearly threshold for both fuel-efficient and other vehicles.
|Financial year||Fuel-efficient vehicles(fuel consumption of 7L/100km or less)||Other vehicles|
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How to calculate your luxury car tax
Calculating your LCT is relatively simple. To start, you need to determine the LCT value of the car, which includes what you paid for the car including GST, customs duties and any other costs at the time of the import. You then subtract the LCT threshold. You can check the threshold for the applicable year using the table above. Then use the following formula:
(LCT value – LCT threshold) x 10/11 x 33/100 = LCT amount
To see an example of how to use this formula, take a look at the case study below.
Janice is looking to buy a luxury car to replace her old vehicle. She knows the price but wants to see how much the LCT payable on the vehicle will be.
The car she is looking to purchase is $88,000 including GST and she is planning on buying it in the 2018–19 financial year. It is a fuel-efficient car, which means the applicable LCT threshold is $75,526.
She uses the formula to determine her LCT: ($88,000 – $75,526) x 10/11 x 33/100 =
Frequently asked questions
I've already paid luxury car tax on my vehicle and I'm selling my car. Do I need to pay it again?
If the vehicle you're selling is less than two years old and the car has already been subject to LCT, you may need to pay it again if the car has increased in value. The LCT payable will decrease by the amount you previously paid.
I'm purchasing a vehicle that was imported one and a half years ago. Do I still need to pay LCT?
Yes. LCT is only waived for vehicles imported two or more years ago.
I want to start a business selling luxury cars. What do I need to do in regard to LCT?
Before paying for LCT, you need to be registered for GST and LCT. Your GST registration needs to be processed before registering for LCT.
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