Luxury car tax calculator Australia

Use our luxury car tax calculator to calculate the tax you'll need to pay on your luxury car in Australia.

We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!

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 calculator below to figure out the LCT that is included in the overall price of a car in Australia and calculate the LCT you will need to pay.


LCT Calculator
$

You need to pay

$0

*Whilst every effort has been made to ensure the accuracy of this calculator, the results should only be used as an indication. They are neither a recommendation nor an eligibility test for any product and should not be construed as financial advice, investment advice or any other sort of advice.

Luxury car tax rates and thresholds

The LCT changes depending on the year and fuel efficiency of the vehicle. It 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 yearFuel-efficient vehicles (fuel consumption of 7L/100km or less)Other vehicles
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
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 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 example below.

Example

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.

The car she is looking to purchase is $88,000 including GST and she is planning on buying it in the 2020–21 financial year. It is a fuel-efficient car, which means the applicable LCT threshold is $77,565.

She uses the formula to determine her LCT: ($88,000 - $77,565) x 10/11 x 33/100 =

$3,130.50

Loans.com.au - New and Dealer Used Car Loan

Loans.com.au - New and Dealer Used Car Loan

From

4.67 % p.a.

fixed rate

From

5.22 % p.a.

comparison rate

  • Early payout available
  • No monthly ongoing fee
  • Borrow up to $100,000
Security Logo

100% confidential application

Loans.com.au - New and Dealer Used Car Loan

A competitive fixed rate to purchase a car up to four years old. Option to add on-road costs into loan amount.

  • Interest rate: 4.67% p.a.
  • Comparison rate: 5.22% p.a.
  • Interest rate type: Fixed
  • Application fee: $400
  • Minimum loan amount: $5,000
  • Maximum loan amount: $100,000
Go to site
Promoted

Interested in buying a luxury car? Compare loans now

$
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Application Fee Monthly Service Fee Monthly Repayment
Loans.com.au - New and Dealer Used Car Loan
From 4.67% (fixed)
5.22%
$5,000
3 to 5 years
$400
$0
You'll receive a fixed rate from 4.67% p.a. based on your risk profile
Finance a new car and benefit from features such as fast approval, no ongoing fees and an optional balloon payment. Settle the loan before 30 November 2021 and enter the draw to win a $1,000 fuel gift voucher. T&Cs apply.
Plenti Car Loan
From 4.89% (fixed)
5.44%
$2,000
3 to 7 years
from $249 to $799
$0
You'll receive a fixed rate from 4.89% p.a.
Borrow up to $100,000 with a Plenti Car Loan and benefit from no early repayment or exit fees.
Wisr Secured Car Loan
From 4.74% (fixed)
5.01%
$5,000
3 to 7 years
$195 for refinance and dealer sale ($245 for private sale)
$0
You'll receive a personalised interest rate from 4.74% p.a. to 16.01% p.a. based on your risk profile
A flexible car loan from $5,000 - $63,000 with personalised rates and rewards for strong credit customers.

⭐Special Offer: Wisr's standard establishment fee $605 will be reduced to $195 for applications submitted through Finder. T&Cs apply.
Credit Concierge Car Loan
From 3.35% (fixed)
4.41%
$10,000
1 to 7 years
$350
$8.50
You'll receive a fixed rate of 3.35% p.a. with a comparison rate of 4.41% p.a.
Get access to over 20 providers to fund a new or used car.
Stratton Finance New Car Loan
From 3.85% (fixed)
4.05%
$10,000
3 to 7 years
$700
$8.25
You'll receive a fixed rate from 3.85% p.a. depending on the lender you are approved with
Apply for up to $250,000 and use cash or trade in a vehicle to use as a deposit. Optional balloon payment available.
IMB New Car Loan
4.99% (fixed)
5.34%
$2,000
1 to 7 years
$275.12 ($250 Application fee + $25.12 PPS registration fee)
$0
You'll receive a fixed rate of 4.99% p.a.
A low minimum borrowing amount of $2,000 that you can use to purchase a new car or one that's up to two years old.
RACV New Car Loans
From 4.99% (fixed)
5.69%
$5,000
1 to 7 years
$499
$0
You'll receive a fixed rate from 4.99% p.a.
A larger loan of $5,000 or more to help you buy a new or used car. 5-hour pre approval available and no ongoing fees.
NRMA New Car Loan
From 4.99% (fixed)
5.69%
$5,000
1 to 7 years
$499
$0
You'll receive a fixed rate from 4.99% p.a.
Purchase a new or used car up to 3 years old and benefit from a fixed rate and no monthly fees. Pre-approval available within 5 business hours.
CarClarity Car Loan
From 3.35% (fixed)
4.95%
$10,000
1 to 7 years
$356
$8.25
You'll receive a fixed rate from 3.35% p.a.
Get access to more than 30 lenders to finance a new or used car for personal or corporate use. Borrow up to $250,000 with terms from 1 to 7 years.
Heritage Bank Car Loan
4.89% (fixed)
5.53%
$5,000
1 to 7 years
$200
$5
You'll receive a fixed rate from 4.89% p.a.
Finance a new or used car up to 5 years old. Large maximum borrowing amount up to $100,000 and terms up to 7 years.
NAB Personal Loan Unsecured Fixed
From 6.99% (fixed)
7.91%
$5,000
1 to 7 years
$150
$10
You'll receive a fixed rate between 6.99% p.a. and 18.99% p.a. ( 7.91% p.a. to 19.83% p.a. comparison rate) based on your risk profile
Borrow from $5,000 to $55,000, with 1 to 7 year loan terms available. This loan comes with no fees for extra repayments and no early exit fees.
RACQ Bank Car Loan Special
5.49% (fixed)
6.16%
$3,000
Up to 7 years
$395
$0
You'll receive a fixed rate of 5.49% p.a.
Borrow up to $60,000 for a new or used car and get a range of membership benefits.
OurMoneyMarket Car Loan
From 5.35% (fixed)
5.65%
$2,001
1 to 7 years
$250
$0
You'll receive a fixed interest rate from 5.35% p.a. to 14.99% p.a. based on your risk profile.
Borrow between $2,001 and $75,000 to finance a new or used car up to 10 years.
SocietyOne Car Loan
From 5.95% (fixed)
5.95%
$5,000
2 to 5 years
from $0 to $595
$0
You'll receive a fixed rate between 5.95% p.a. and 17.49% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Benefit from no ongoing fees and no early repayment fee.
Driva Car Loan
From 2.85% (fixed)
4.39%
$2,000
1 to 7 years
$295 (Varies by lender, starting from $295)
$10
You'll receive a fixed rate from 2.85% p.a.
Borrow up to $250,000 with loan terms from 1 to 7 years. Get access to a range of lenders.
loading

Compare up to 4 providers

What qualifies as an environmentally friendly car? The Australian Taxation Office defines an environmentally friendly vehicle as one that uses less than 7 litres per 100km of fuel, combined.

Does the luxury car tax only apply to luxury cars?

The LCT is specifically applied to imported vehicles over the LCT threshold. This has made the LCT a point of contention in Australia for some time now from both buyers and manufacturers, because strictly that means that it does not only apply to luxury cars. For example, some entry-level models such as Nissan Patrol wagons or the Toyota LandCruiser 200 series attract the tax. On the flip side, some traditionally luxury brand cars may avoid the tax altogether.

In the years since the tax was introduced, increased buying power has driven up Australia's demand for bigger and better cars. At the same time, cars that may have previously been considered "luxury" have also become more accessible.

What about electric vehicles?

Electric, zero-emission vehicles are charged at the same level of tax as fuel-efficient vehicles ($77,565). This raises some issues from the electric vehicle industry, especially as "fuel-efficient" includes cars that consume up to 7 litres of petrol for every 100km.

While brands like Tesla may be deemed "luxury" in terms of price, many of the features do not meet those of luxury vehicles. Some people argue that taxing zero-emission vehicles like Teslas disincentives people from purchasing these cars and reducing their carbon footprint.

Are there any exemptions to the luxury car tax?

There are a few exemptions to the LCT:

  • Commercial vehicles. Commercial vehicles designed to carry goods rather than passengers are not subject to the LCT, which can spare some high-end utes. The exemption is based on the vehicle's payload over the passenger-carrying capacity.
  • Modifications for disabilities. If the car in question is under the LCT threshold, but modifications to the car for a person with a disability (e.g. hand controls) bring the price over the threshold, then the buyer will not be subject to the LCT. However, if the price of the car is above the threshold, then LCT will apply.
  • Disability exemptions. If you are an eligible veteran or person with a disability, you may be exempt from LCT if the car in question is specifically fitted out for transporting a person with a disability seated in a wheelchair. However, if the car is GST-free under GST law, then LCT will apply.

Frequently asked questions

I've already paid LCT 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.

More guides on Finder

Car Loan Offers

Important Information*
Logo for IMB New Car Loan
IMB New Car Loan

You'll receive a fixed rate of 4.99% 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.

Logo for Beyond Bank Low Rate Car Loan "Special Offer"
Beyond Bank Low Rate Car Loan "Special Offer"

You'll receive a fixed rate of 4.69% p.a.
Take advantage of a competitive rate, pre-approval and no early repayment fees when you finance a car under two years old.

Logo for RACV New Car Loans
RACV New Car Loans

You'll receive a fixed rate from 4.99% p.a.
A larger loan of $5,000 or more to help you buy a new or used car. 5-hour pre approval available and no ongoing fees.

Logo for NRMA New Car Loan
NRMA New Car Loan

You'll receive a fixed rate of 4.99% p.a.
Purchase a new or used car up to 2 years old and benefit from a fixed rate and no monthly fees. Pre-approval available within 5 business hours.

Go to site