Luxury car tax (LCT) is a tax on cars with a GST-inclusive value above the LCT threshold.
The threshold has been increased slightly by the ATO for the new financial year 2019-20 to $67,525, up from last year's threshold of $66,331.
However, good news for those driving fuel-efficient cars with a fuel consumption of 7 L / 100 km or less, as the ATO has decided to leave the threshold for fuel-efficient cars static at $75,526.
LCT is imposed at the rate of 33% on the amount above the luxury car threshold.
LCT is paid by businesses that sell or import luxury cars (dealers), and also by individuals who import luxury cars.