LCT Tax Saving Tip
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.