LCT is payable on new cars and used demonstrator vehicles less than 2 years old. If LCT has already been paid on the vehicle, a credit is allowable. The current luxury car tax rate is33%
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What is the luxury car tax?
Adjustments, credits and refunds. See also: Luxury car tax rate and thresholds. Definitions – Luxury car tax. Luxury car tax (LCT) is a tax on cars with a GST-inclusive value above the LCT threshold. You must pay LCT when you sell or import a luxury car. Last modified: 27 May 2016QC 22094.
Do I have to pay LCT for a luxury car?
Generally, you’re required to pay LCT if you’re registered or required to be registered for GST and you sell or import a luxury car 鈥?this includes retailers, wholesalers, manufacturers and other businesses that sell luxury cars. You also have to pay LCT if you’re an individual (private buyer) who imports a luxury car.
Can primary producers claim the additional 8% luxury car tax?
Primary producers and tourist operators will be able to claim a refund of the additional 8% LCT (to a maximum of $3,000) on four-wheel or all-wheel drive vehicles under certain conditions. When does Luxury Car Tax apply? From a typical car buyer’s point of view, Luxury Car Tax is payable on a vehicle when:
What is the luxury car tax threshold for 2020?
According to the ATO, the luxury car tax is set at 33% of the value of the vehicle above the luxury car threshold. For the 2020/21 financial year, the thresholds are $77,565 for fuel-efficient vehicles, and $68,740 for all other vehicles. How has the luxury car tax threshold changed over time?