LCT Tax Saving Tip

 
Did you pay 33% more than the price list when you ordered a paint protection at the same time as you bought a new car at the dealer ?
 

What is LCT ?

Luxury car tax (LCT) is a tax of 33% imposed on the GST-inclusive value of luxury cars over the relevant LCT threshold.

The LCT threshold

The LCT threshold is equal to the car limit, which is $57,466 for the 2010 – 2011 financial year.
The LCT threshold for fuel-efficient cars is $75,375 for the 2010 – 2011 financial year.

If you buy a car with a GST-inclusive value above these LCT thresholds, you must pay LCT. In general, the value of a car includes the value of any parts, accessories or attachments you bought at the same time as the car.

For more infomation about LCT, visit the ATO website at http://www.ato.gov.au.