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).

 

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