luxury tax australia Page 5

Ah, the Luxury Car Tax (LCT) – Australia's way of reminding you that your shiny new toy isn't just a car, it's a status symbol with a side of guilt. The LCT kicks in when you buy a car above the threshold, currently set around AUD 71,849 for fuel-efficient vehicles and AUD 79,659 for others (2024 figures). The tax is a hefty 33% on the amount exceeding that threshold, turning your dream ride into a wallet-sapping nightmare.

Keep in mind, this applies to both new and imported cars, making your grand plans to import that supercar a little more expensive. Used cars can dodge the bullet if their value falls below the threshold, but good luck finding a bargain on Tradingpost or CarShowroom that doesn’t flirt with it. For the nitty-gritty and official updates, the Australian Taxation Office is your best mate.