CONVENTION TOPIC: LUXURY CAR TAX THRESHOLD TO RISE

The Luxury Car Tax (LCT) threshold will increase to $64,132 for the 2016/17 financial year, in line with an increase in the ‘All Groups’ Consumer Price Index (CPI).

The LCT threshold for fuel-efficient luxury cars will increase to $75,526.

Cars with an LCT value over the threshold attract an LCT rate of 33%.

The following table provided by the Australian Taxation Office lists the LCT thresholds for the relevant financial year – the financial year the car was imported, acquired or sold.

luxury-table

If you buy a car with a GST-inclusive value above these LCT thresholds, you must pay LCT. In general, the value of a car includes the value of any parts, accessories or attachments you supplied or imported at the same time as the car.

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