Dealers who are impacted by the Luxury Car Tax (LCT) should be aware of the most recent changes to the thresholds. The LCT threshold is indexed annually according to a factor determined by Parliament or, in accordance with movements in the All Groups Consumer Price Index (All Groups CPI).
The Australian Taxation Office (ATO) has recently released the latest threshold figures for the 2015-16 financial year; including the threshold for fuel-efficient vehicles.
- The new LCT threshold for the 2015-16 financial year is $63,184 (a rise of $1300)
- The fuel-efficient car limit for the 2015-16 financial is $75,375 (the same as last financial year)
These limits apply to the financial year commencing 1 July 2015. Dealer software and spreadsheets used to calculate the LCT should be updated accordingly.
For more information head to the ATO website or get in touch with your professional advisors.