Luxury car tax threshold


25 May 2013

Luxury car tax threshold

1. The luxury car tax (LCT) threshold and the fuel-efficient tax limit are determined in accordance with Division 25 of the A New Tax System (Luxury Car Tax) Act 1999 (LCT Act).

2. From 1 July 2012, the LCT threshold is to be indexed annually according to a factor to be determined by Parliament or, if such a factor is not determined by Parliament, indexed annually in accordance with movements in the All Groups Consumer Price Index (All Groups CPI).

3. Prior to 1 July 2012 the LCT threshold was indexed in accordance with the motor vehicle purchase sub-group of the Consumer Price Index (CPI).

4. Parliament has not determined an indexation factor, so for the 2013-14 financial year the LCT threshold will be indexed in accordance with movements in the All Groups CPI unless the indexation factor is 1 or less.

5. For the 2012-13 financial year this index was 406.6 and for the 2011-12 financial year the index was 398.7 resulting in an indexation factor of 1.020. For the 2012-13 financial year, the LCT threshold was $59,133.

The LCT threshold for the 2013-14 financial year is $60,316 ($59,133 x 1.020).


All representations and information contained in the Sam David web site are made in good faith and are believed to be correct at the time of preparation. Articles are of a general nature and they do not purport to be specific taxation advice. Individual needs or other considerations have not been taken into account, thus information contained herein should not be relied upon as a substitute for detailed advice.