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Luxury Car Tax Calculator

Find out how to calculate the luxury car tax that is payable on a vehicle.

A Luxury Car Tax (LCT) calculator allows you to figure out how much LCT is included in the overall price of the car or how much LCT is payable on the car. Luxury car tax is a tax that is charged to you when you purchase a car that meets certain criteria that deem it a "luxury" vehicle. You can also use LCT to work out how much is included in the overall price of a car.

What is luxury car tax?

When you buy a vehicle that is above a certain dollar value, you will be charged a tax. This is called the luxury car tax. The thresholds for this tax, detailed in the table below, change each year and are different for fuel efficient and non-fuel efficient vehicles. LCT is imposed at the rate of 33% on the amount above the luxury car threshold and is paid by businesses that sell or import luxury cars and individuals who import them.

Luxury car tax rates and thresholds

This guide shows the price thresholds of luxury vehicles. Depending on what function you’re using, the price will include the gross sales tax and the luxury car tax. You’ll then have to select whether or not the car meets the luxury car fuel-efficient requirements (a combined cycle fuel consumption of less than seven litres per 100 kilometres).

Financial Year Fuel efficient vehicles(fuel consumption of 7L/100km or less) Other vehicles
2015-16 $75,375 $63,184
2014-15 $75,375 $61,884
2013-14 $75,375 $60,316
2012-13 $75,375 $59,133
2011-12 $75,375 $57,466

Use a car loan calculator to work out your repayments

How to calculate your luxury car tax

Calculating your luxury car tax 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.

Case study

calculating car lease costs

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. To properly do this, she works out how much LCT she will need to pay. For the year 2015/16 the LCT threshold was $63,184 for fuel efficient vehicles. The car she is looking to purchase is $88,00 including GST.

She uses the formula to determine her LCT: ($88,000 - $63,000) x 10/11 x 33/100

In her case, the price of the vehicle, including the gross sales tax but excluding the luxury car tax, is $88,000 and it does meet the fuel efficiency criteria. According to the calculator, the LCT rate is 33% and the LCT payable on the vehicle is $7,444.

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 applies is only waived for vehicles imported two or more years before.

I want to start a business selling luxury cars. What do I need to do in regards to LCT?

Before paying for luxury car tax, you need to be registered for GST and LCT. Your GST registration needs to be processed before registering for LCT.

Interested in buying a luxury car? Calculate your repayments for the following loans

Rates last updated October 22nd, 2018
$
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Monthly Service Fee Application Fee Product Description Monthly Repayment
Stratton Finance New Car Loan
From 5.29% (fixed)
6.56%
$18,000
1 to 7 years
$8.90
$459.20
You'll receive a fixed or variable rate depending on the lender you are approved with
Apply for up to $100,000 and use cash or trade in a vehicle to use as a deposit. Optional balloon payment available.
Loans.com.au - New Car Loan
5.44% (fixed)
5.99%
$5,000
3 to 5 years
$0
$400
You'll receive a fixed rate of 5.44% p.a.
Finance a new car and benefit from features such as fast approval, no ongoing fees and an optional balloon payment.
IMB New Car Loan
5.89% (fixed)
6.24%
$2,000
1 to 7 years
$0
$250
You'll receive a fixed rate of 5.89% p.a.
A low minimum borrowing amount of $2,000 that you can use to purchase a new car or one up to two years old.
Latitude Car Loan
From 6.99% (fixed)
8.1%
$5,000
1 to 7 years
$10
$295
You'll receive a fixed rate between 6.99% p.a. and 14.99% p.a. based on your risk profile
Finance a new or used car up with loans from $5,000 and benefit from flexible repayments.
Beyond Bank Low Rate Car Loan
From 5.69% (fixed)
5.97%
$25,000
1 to 7 years
$0
$175
You'll recive a fixed rate of 5.69% p.a.
Take advantage of a competitive rate, pre-approval and no early repayment fees when you finance a car under two years old.
St.George Secured Personal Loan - Fixed Rate
From 8.49% (fixed)
9.6%
$3,000
1 to 5 years
$12
$195
You'll receive a fixed rate from 8.49% p.a. based on the value of your car
Get a competitive rate and apply for a larger loan up to $80,000 when you attach a new or used car as security to the loan.
Westpac Car Loan
From 8.49% (fixed)
9.67%
$10,000
1 to 7 years
$12
$250
You'll receive a fixed rate of 8.49% p.a.
Finance a new or used car and benefit from convenient features for car buyers including a car search tool and the option to borrow extra for on-road costs.
RACV New Car Loans
From 5.99% (fixed)
6.55%
$15,000
1 to 7 years
$0
$399
You'll receive a fixed rate of 5.99% p.a.
A larger loan of $15,000 or more to help you buy a new or used car. 5-hour pre approval available and no ongoing fees.
IMB Secured Personal Loan
6.89% (fixed)
7.24%
$2,000
1 to 5 years
$0
$250
You'll receive a fixed rate of 6.89% p.a.
Benefit from this competitive rate by securing the loan with a vehicle up to 6 years old. Use this flexible loan for any purpose.
Community First Credit Union New Car Loan - Variable
From 5.34% (variable)
6.1%
$10,000
1 to 7 years
$5
$195
You'll receive a variable rate of 5.34% p.a..
Finance a brand new car, demonstrator vehicle, boat, caravan or motorbike and benefit from a competitive variable rate. Loans from $10,000

Compare up to 4 providers

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Important Information*
IMB New Car Loan

You'll receive a fixed rate of 5.89% p.a.
A low minimum borrowing amount of $2,000 that you can use to purchase a new car or one up to two years old.

Loans.com.au - New Car Loan

You'll receive a fixed rate of 5.44% p.a.
Finance a new car and benefit from features such as fast approval, no ongoing fees and an optional balloon payment.

Latitude Motor Vehicle Loan

You'll receive a fixed rate between 6.99% p.a. and 14.99% p.a. based on your risk profile
Apply for a loan from $5,000 to finance a new or used car. Flexible repayments and options to finance a classic car.

Stratton Finance New Car Loan

You'll receive a fixed or variable rate depending on the lender you are approved with
Apply for up to $100,000 and use cash or trade in a vehicle to use as a deposit. Optional balloon payment available.

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