luxury car tax victoria

The Luxury Car Tax (LCT) in Australia, including Victoria, is a federal tax applied to cars above a certain value threshold. For the 2023-2024 financial year, the LCT threshold is $71,849 for fuel-efficient vehicles and $67,525 for others, with a tax rate of 33% on the amount above the threshold. This tax aims to curb the purchase of high-priced vehicles and generate government revenue.

Keep in mind, LCT applies on top of the Goods and Services Tax (GST), making luxury cars significantly more expensive. For example, a $100,000 car could attract an LCT of around $10,000. If you're hunting for a luxury ride on Tradingpost or CarShowroom, factor this tax into your budget to avoid nasty surprises. For official, up-to-date figures, consult the Australian Taxation Office's guidelines.