how to calculate luxury car tax

Best answer


Calculate the amount subject to LCT. Take the full price of the vehicle and subtract $59,133. …Find the GST exclusive portion of the above figure. The easiest way to do this is to multiply the figure by 10 and then divide by 11. …Thirdly multiple this above figure by 33% to calculate the LCT component on the vehicle price. In our example $37,152 x 33% leaves $12,260 of luxury car tax.

People also ask


  • How is luxury car tax calculated under GST?

  • In short, Luxury Car Tax is calculated as 33% of the GST exclusive portion of the vehicle purchase price over $59,133. It can be calculated using the following steps: Calculate the amount subject to LCT. Take the full price of the vehicle and subtract $59,133.

  • How do you calculate LCT on a luxury car sale?

  • If you need to work out the amount of LCT payable on the sale of a luxury car, start by subtracting the current LCT threshold ($68,740 for ordinary vehicles, $77,565 for environmentally-friendly variants) from the price of the car (including GST). Next, divide this amount by 1.1 (the 10% GST rate).

  • What is LCT tax on a car?

  • Luxury car tax Luxury car tax (LCT) is a tax on cars with a GST-inclusive value above the LCT threshold. LCT is imposed at the rate of 33% on the amount above the luxury car threshold. LCT is paid by businesses that sell or import luxury cars (dealers), and also by individuals who import luxury cars.

  • Does the luxury car tax apply to trucks?

  • Despite its name, the luxury car tax applied to all cars that were eligible because of price, including expensive sports cars and more traditionally luxurious vehicles designed for comfort and prestige. The luxury car tax did not apply to trucks or SUVs, regardless of their prices.

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