While Australia has always paid various taxes on new cars, they have generally been applied across entire brands or cars from a specific region that Australia has had trade agreements with.
Introduced in 2000 on the back of the GST, the Luxury Car Tax has found its way onto the receipt of countless customers who bought a car worth more than a certain amount.
They may be different cars for different purposes, but only one is marketed by brands known for 'luxury' cars.
For the 2017-18 financial year, from July 1, 2015, the Luxury Car Tax threshold has been increased to $65,094 while the threshold for cars classed as fuel-efficient (i.e. where a vehicle's combined fuel usage is $75,526.
For example, let’s say that you buy a car that costs $100,000 including GST.
The tax is applied by the ATO to any imported, new passenger car or dealer demonstrator up to 2 years old.
View cars under the LCT threshold
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