The beginning of the new financial year has seen the Luxury Car Tax (LCT) threshold change to $66,331 for the 2018-19 Financial Year.
The change represents an increase of $1237 when compared to the threshold from last Financial Year for vehicles that use more than 7.0L/100km on the combined fuel cycle.
More efficient vehicles that use less than 7.0L/100km have a higher Luxury Car Tax threshold of $75,526. It’s worth noting, this figure isn’t indexed and hasn’t moved in the past two years.
Luxury Car Tax is imposed at 33 per cent on the value of vehicles that sit above the threshold.
To date, the car industry has been ineffective in its efforts to have the tax removed. With local buyers now commonly opting for higher trim levels, mainstream brand’s such as Toyota can’t escape the tax.
Pleasingly, Lexus has immediately moved to realign its pricing, the change in the LCT thresholds has seen prices reduced by up to $371.
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