GST, BAS and activity statements

Luxury car tax (LCT)

Luxury car tax is a tax on the sale or import of a car whose value is above the luxury car tax threshold, which the ATO publishes and which differs for fuel-efficient vehicles. It is charged at a rate set by law on the amount above the threshold, and a business that sells or imports such a car reports and pays it on its business activity statement. The dealer who sells to a customer usually works out the amount. Cars designed to carry a load of one tonne or more, or more than eight passengers, are generally outside the tax. The business needs to work out the car's value carefully because the result depends on the price.

General information, not tax advice. The rules change, so check the source page above for the current position. Fedix is developed by Tax7 R&D Pty Ltd.