lct 2023 Page 98

In Australia, “LCT 2023” is all about the Luxury Car Tax thresholds for the 2022–23 and 2023–24 financial years.

For 2022–23 the thresholds were $71,849 (other cars) and $84,916 (fuel‑efficient, ≤7.0 L/100 km); for 2023–24 they rose to $76,950 and $89,332 respectively.

LCT is 33% on the value above the relevant threshold, calculated on the GST‑inclusive price of the car (excluding rego, CTP and stamp duty).

It’s charged to dealers/importers and usually baked into the drive‑away price; private sellers generally aren’t collecting it on a used car sale.

Handy rule: if the car officially sips ≤7.0 L/100 km, it gets the higher threshold; otherwise, bring a thicker wallet.