Luxury Car Tax Australia

Luxury Car Tax Rate and Thresholds.

The Australian federal government imposed a luxury car tax on vehicles costing over a certain threshold in 2001 at a rate of 25%.

This tax increased to 33% on 1 July 2008.

In July 2021, the threshold for this tax (LCT) rose to:

$69,152 for standard vehicles.
$79,659 for ‘fuel efficient’ vehicles.

‘Fuel efficient’ vehicles in the government’s eyes are vehicles consuming less than 7L/100km on a combined cycle.

Vehicles under those prices do NOT attract the additional Luxury car tax.

Agoda Hotel Bookings
Sponsor ai10

In July 2020 the thresholds were $68,740 and $77,565.

More thresholds in the chart below.

Origin of the Luxury Car Tax.

It is claimed that the tax was designed to protect the local automobile manufacturing industry.

But I appears that it is being retained as an extra tax on those better able to afford a more expensive car.

I am not sure what the most popular luxury car costs, but the most popular cars in Australia in September 2021 were:

  • Ford Ranger ($29,190 to $79,390)
  • Toyota Hilux ($23,590 to $70,750)
  • Toyota Corolla ($23,895 to $35,645)

The majority of those will be exempt from LCT.

If you buy a car with a GST-inclusive value above the 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.

Luxury Car Tax thresholds.

Financial year Fuel efficient vehicles Other vehicles
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
2011–12 $75,375 $57,466
2010–11 $75,375 $57,466
0 0 votes
Article Rating
Notify of

Inline Feedbacks
View all comments
Would love your thoughts, please comment.x