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how to calculate lct

Luxury Car Tax (LCT) kicks in when a car’s LCT value exceeds the threshold, and yes, the ATO brought a calculator to the party.

Work out the car’s LCT value (price including GST, dealer delivery and factory-fitted accessories, but excluding rego, CTP and stamp duty), then apply the current threshold: $80,567 for most cars or $91,387 for fuel‑efficient ones (≤7.0 L/100 km) in 2024–25.

The formula is brutally simple: LCT = 33% × (LCT value − relevant threshold), and only the amount above the threshold cops the tax.

Example: if the LCT value is $100,000 and it’s not fuel‑efficient, the LCT is 0.33 × (100,000 − 80,567) ≈ $6,412.89; dealers/importers pay it, but it’s baked into your price like a cheeky surcharge.

If you’re skirting the line, check the latest ATO thresholds before signing anything—numbers move, unlike the dealer espresso machine.

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