How is Luxury Car Tax calculated?
The amount of Luxury Car Tax payable on the purchase of a car depends on the amount by which the car’s price exceeds the Luxury Car Tax threshold. Briefly, the LCT payable on a car is 33% of the GST-exclusive portion of the car’s price (including GST but excluding government fees and charges such as stamp duty, registration & CTP) exceeding the Luxury Car Tax threshold (currently $57,180.00 including GST). Calculate the amount of LCT payable on a car – that is, the amount of LCT added to a vehicle’s price by a dealership to calculate the total sale price of the car to a buyer – as follows: • Calculate the car’s supply price – the total price of the car including GST and excluding government fees & charges (typically stamp duty, registration & CTP). • Calculate the value of the car’s supply price that exceeds the LCT threshold, by subtracting the LCT threshold ($57,180.00) from the car’s supply price (calculated in step 1). • Exclude the GST from the value of the car’s supply price that
