how much is the luxury car tax in australia

The Luxury Car Tax (LCT) in Australia is a charming little extra cost slapped on those who dare to buy a car that costs above a certain threshold. As of now, the threshold is AUD 71,849 for fuel-efficient vehicles and AUD 79,659 for others. The tax rate itself is a hefty 33% on the amount exceeding that threshold.

So, if you’re eyeing a shiny new set of wheels that crosses that limit, expect to cough up an additional third of the excess price straight to the taxman. Keep in mind, this applies to the GST-inclusive price, making your luxury car even less of a bargain.

For used cars, the LCT generally doesn’t apply unless imported recently. To avoid surprises, check official Australian Taxation Office guidelines or consult ServiceCentral for the latest updates.