Luxury Car Tax

Tax Changes from 1st July 2014
July 8, 2016
Federal Budget 2014 – The Good News & the Bad News
July 8, 2016

Luxury Car Tax (LCT) is applied @ 33% on luxury cars sold or imported provided that value of the car exceeds the luxury car threshold. LCT is required to be payable by the businesses who sells the cars and is GST registered. Businesses include retailers, manufacturers. LCT also implies on individuals who imports the luxury car. A business needs to be registered for GST before in order to be registered for LCT.

LCT is payable or refundable and can be calculated on cash or accrual basis and is required to be lodged in the activity statement.
If you sold the two years old luxury car and the car has already subject to LCT then you only pay LCT if the value of the car has been increased. LCT payable in this car is on the increased value of the car. You must have Tax invoice for the old taxable sale where the LCT is already paid.

Value of the car includes price of all accessories, modification and treatments done to the car or overall price paid by the customer before the car gets delivered.

LCT threshold applies to the relevant year the car was imported, acquired or sold. For the financial year 2013-14, threshold for fuel efficient vehicles and other vehicles is $75,375 and $60,316.

Contact us today on 1300 300 106 for further information about our Cranbourne Accountant and Cranbourne Tax Agent Services to find out how this budget affects you.