Luxury Car Tax (LCT)
Is your car over the Luxury Car Tax threshold?
LCT is a 33% federal tax on the value of a car above a threshold. This checks whether it applies and how much — using the ATO formula, not the naïve version that overstates it by ~10%.
The car
Use the GST-inclusive price (before stamp duty, CTP and rego).
$
Luxury Car Tax applies
$4,330
The threshold is $80,567; $14,433 sits above it.
| Applicable threshold | $80,567 |
| Value above threshold (GST-incl.) | $14,433 |
| Less GST on the excess (÷ 11) | −$1,312 |
| LCT @ 33% | $4,330 |
The fuel-efficient threshold got much harder in 2025.From 1 July 2025 a car only gets the higher $91,387 threshold if it uses ≤ 3.5 L/100km (was 7.0) — so nearly all petrol, diesel and even many plug-in hybrids now use the lower $80,567 threshold. Battery EVs still qualify. Figures as at 2025-07-01; confirm on the ATO site.
Buying it? See the on-road cost in the stamp duty & rego tool.