To work out the luxury car tax (LCT) amount you must pay if you sell a car, use the following formula:(LCT value 鈭?LCT threshold) 10 11 33%. Like other business taxes, you report and pay LCT on your activity statement.
People also ask
How do you calculate LCT tax on a luxury car?
How to calculate your luxury car tax Calculating your LCT is relatively simple. To start, you need to determine the LCT value of the car, which includes what you paid for the car including GST, customs duties and any other costs at the time of the import. You then subtract the LCT threshold.
What is the LCT threshold for luxury cars in Australia?
Luxury Car Tax Rate Thresholds Cars with a luxury car tax (LCT) value over the LCT threshold attract an LCT rate of 33%. The LCT threshold is currently $66,331 AUD (for the 2018-19 financial year) but will be increasing to $67,525 in the new financial year (for the 2019-20 financial year).
How do I calculate the tax on a new car purchase?
Determine the tax percentage or rate that applies to vehicles that cost more that the luxury tax threshold. This information can also be obtained from the taxing authority for your location. Subtract the total cost of your vehicle purchase from the luxury tax threshold.
Does the luxury car tax exist in Australia?
While the luxury car tax in the United States hasn’t been charged in years, as of 2012 a luxury car tax does exist in Australia. Compared to the version used in the United States, the Australian tax only applies to the most expensive vehicles. It also uses a significantly higher tax rate of 33 percent.