Thursday, 18 July 2013

Luxury Car Tax

We have received a few questions on Luxury Car Tax.

Here is some basic info on this topic from the ATO:
What is LCT?
LCT is a tax of 33% imposed on the GST-inclusive value of luxury cars over the relevant LCT threshold. You generally pay LCT when you sell or import a luxury car. You pay LCT as well as any GST payable.
Special refunds may be available for some primary producers and tourism operators for luxury cars they buy
LCT threshold
The LCT thresholds for the 2013–14 financial year are:
o    $75,375 for fuel-efficient cars
o    $60,316 for other cars.
These thresholds are different to the car limit which is used to work out depreciation deductions for income tax.
If you buy a car with a GST-inclusive value above these LCT thresholds, you must pay LCT. In general, the value of a car includes the value of any parts, accessories or attachments you supplied, or imported at the same time as the car.

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