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.
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.
https://www.ato.gov.au/rates/luxury-car-tax-rate-and-thresholds/
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 |