When does Luxury Car Tax apply?
From a typical car buyer’s point of view, Luxury Car Tax is payable on a vehicle when: • The vehicle is purchased from a dealership. • The vehicle is less than two years old, as measured from the build date for locally built cars, or the compliance date for imported cars. However, if a vehicle is sold used and LCT has already been paid on the vehicle (e.g. when it was sold new), a credit is applied for any LCT already paid. This means that except in the rare case where a used vehicle is sold for more than its new car value, LCT is effectively only payable on new cars and used demonstrator vehicles less than 2 years old. • The vehicle’s price (including GST, excluding government charges such as stamp duty, registration & CTP) exceeds the Luxury Car Tax threshold – currently $57,180.00 (including GST). And the vehicle is not: • A motor home or campervan. • A commercial vehicle, and is not designed principally to carry passengers. • GST-free and specifically fitted out for transporting di
