Private Fleet on luxury car tax:
Luxury car tax or LCT is payable to the Australian Tax Office (ATO) for all cars purchased in which the price exceeds the luxury car tax threshold ($57,009) except for certain instances described below.
The luxury car tax is payable on every dollar exceeding this threshold.
Luxury car tax is calculated as 25% of the GST exclusive portion of the purchase price over $57,009. Luxury car tax can be calculated using the following steps:
- Calculate the amount subject to LCT. Take the full price of the vehicle and subtract $57,009.
- Find the GST exclusive portion of the above figure. The easy way to do this is to multiply the figure by 10 and then divide by 11.
- Thirdly multiple the above figure by 25% to calculate the LCT component on the vehicle price.
The luxury car tax should then of course be added onto the GST inclusive price of the car.
- Take a vehicle whose GST inclusive price is $200,000. $200,000 less $57,009 equals $142,991, that is the figure subject to luxury car tax
- Taking off the GST portion of this figure gives $129,992
- Lastly multiplying by 25% gives a hefty $32,498 in Luxury Car Tax
- Supply price for this car including LCT is $232,498
Luxury car tax exceptions:
- If the vehicle was purchased or imported prior to 1st July 2000
- If the car is supplied over two years after the local build date or, if imported, the vehicle compliance date.
- If it is an emergency vehicle (eg an ambulance)
- If it is not GST free and is specially fitted out for transporting disabled people seated in wheelchairs
- If it is a campervan or motor home
- If it is a commercial vehicle that is not designed for the principal purpose of carrying passengers.
- If the vehicle is supplied by private sale