Luxury Car Tax Calculator Australia 2025–26

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Luxury Car Tax Calculator Australia

Work out exactly how much LCT applies to your vehicle — for domestic purchases and imports. 2025–26 thresholds included.

$80,567
Standard threshold (2025–26)
$91,387
Fuel-efficient threshold (2025–26)
33%
LCT rate on value above threshold
<3.5 L/100km
Fuel-efficient definition (from 1 Jul 2025)

Calculate Your LCT

Domestic Purchase
Import / Grey Import
Include GST, dealer delivery, accessories and extras. Exclude stamp duty, rego and insurance.
Please enter a valid vehicle price.
The dutiable value of the vehicle as assessed by Australian Border Force.
Please enter a valid customs value.
Typically 5% for most imported vehicles. Enter 0 if exempt.
Include all import transport and insurance costs.
Enter your vehicle details and click Calculate LCT to see a full breakdown.

How LCT Is Calculated

The ATO uses a straightforward four-step formula, applied to the amount your vehicle exceeds the threshold.

(LCT value − LCT threshold) × 10 ÷ 11 × 33%
The × 10 ÷ 11 step removes the embedded GST from the excess amount before applying LCT.
1

Find Your LCT Value

For domestic sales: GST-inclusive price including accessories, delivery, and extras — but not stamp duty, rego or insurance. For imports: customs value + GST + duty + freight (GST-incl.).

2

Subtract the Threshold

Deduct the applicable threshold — $80,567 for standard vehicles or $91,387 for fuel-efficient vehicles (under 3.5 L/100km) for 2025–26.

3

Remove the GST Component

Multiply the excess by 10 ÷ 11 (i.e., divide by 1.1). This strips out the GST already embedded in the amount over the threshold.

4

Apply 33% LCT Rate

Multiply the GST-exclusive excess by 33%. The result is the LCT amount payable. Add this to the vehicle price to get the total cost to the buyer.

LCT Thresholds by Financial Year

The ATO adjusts thresholds annually using a motor vehicle CPI indexation factor.

Financial Year Standard Vehicles Fuel-Efficient Vehicles LCT Rate
2025–26$80,567$91,38733%
2024–25$80,567$91,38733%
2023–24$76,950$89,33233%
2022–23$71,849$84,91633%
2021–22$69,152$79,65933%
2020–21$68,740$77,56533%
Important change from 1 July 2025: The definition of a fuel-efficient vehicle changed from under 7.0 L/100km to under 3.5 L/100km. Vehicles such as the Toyota Kluger Hybrid (5.6 L/100km), Kia Sorento Hybrid (5.4 L/100km), and Mazda CX-90 Hybrid (5.4 L/100km) no longer qualify for the higher threshold, increasing their LCT liability.

What’s Included in the LCT Value?

Many buyers are surprised by what the ATO counts as part of the taxable price.

✓ Included in LCT Value

  • GST-inclusive vehicle price
  • Customs duty (for imports)
  • Dealer delivery charges
  • Fitted accessories (e.g., sunroof, premium audio, tow bar)
  • Paint protection, window tinting applied before delivery
  • Fleet rebates and support payments received
  • Any modifications fitted at the time of sale

× Excluded from LCT Value

  • Stamp duty and transfer fees
  • Vehicle registration
  • Compulsory third-party (CTP) insurance
  • Extended warranties and service plans
  • Finance charges and interest
  • After-delivery accessories not fitted at point of sale
  • LCT itself is not included in the LCT value

Common LCT Examples

Quick reference examples for popular price points in 2025–26.

Vehicle Price (GST-incl.) Vehicle Type Threshold Applied Amount Over Threshold LCT Payable Total Cost
$75,000Standard$80,567$0$0$75,000
$85,000Standard$80,567$4,433$1,329$86,329
$95,000Standard$80,567$14,433$4,329$99,329
$100,000Standard$80,567$19,433$5,830$105,830
$100,000Fuel-efficient$91,387$8,613$2,584$102,584
$120,000Standard$80,567$39,433$11,830$131,830
$150,000Standard$80,567$69,433$20,830$170,830
$200,000Standard$80,567$119,433$35,830$235,830

Refunds & Credits

Certain buyers can reclaim part of the LCT they’ve paid.

Primary Producers

GST-registered primary producers can claim an LCT refund of up to $10,000 on one eligible vehicle per financial year.

Eligible vehicles must be 4WD or AWD and either a passenger car (MA) with ground clearance ≥175mm or an off-road passenger vehicle (MC).

  • Claim within 4 years of purchase
  • Must be GST-registered
  • One vehicle per financial year
  • Refund = lesser of 8/33 of LCT paid or $10,000

Tourism Operators

GST-registered tourism operators can claim an LCT refund on all eligible vehicles purchased in a financial year, up to $10,000 per vehicle.

Eligible vehicles must be 4WD or AWD and meet the same vehicle category requirements as for primary producers.

  • Claim within 4 years of purchase
  • Must be GST-registered
  • No per-year vehicle cap for tourism operators
  • Applies even if car was financed
How to claim: Use the ATO’s Application for luxury car tax refund – for primary producers and tourism operators form. Claims cannot be made via your BAS. Include your tax invoice showing the LCT amount and evidence of your primary production or tourism activity.

Fuel-Efficient vs Standard: Side-by-Side

The threshold difference can save — or cost — thousands on the same priced vehicle.

Vehicle Price Standard LCT Fuel-Efficient LCT Tax Difference
$85,000$1,329$0Save $1,329
$90,000$2,829$0Save $2,829
$95,000$4,329$1,084Save $3,245
$100,000$5,830$2,584Save $3,246
$110,000$8,830$5,584Save $3,246
$130,000$14,830$11,584Save $3,246
The maximum possible saving from the fuel-efficient threshold is $3,246 (calculated as ($91,387 − $80,567) × 10 ÷ 11 × 33%). Beyond this amount, both thresholds generate the same incremental LCT.

LCT & Novated Leasing

LCT applies regardless of how you pay — and leasing is no exception.

How LCT Affects Novated Leases

When you acquire a luxury vehicle via a novated lease, the LCT is built into the vehicle’s capitalised cost upfront. The leasing company pays LCT on the full supply price (above the threshold) and this cost is folded into your lease repayments.

You do not pay LCT separately — it is already included in the total lease amount.

LCT on Used Vehicles

LCT generally applies to vehicles that are two years old or less (i.e., manufactured or imported within the last two years). Older second-hand vehicles are typically exempt from LCT.

However, if a registered dealer sells a vehicle on which LCT was previously paid and has been refunded, LCT may apply again on resale.

Frequently Asked Questions

Answers to the questions Australians ask most about LCT.

Does LCT apply to electric vehicles (EVs)?▼
Yes. Electric vehicles are subject to LCT if their price exceeds the applicable threshold. From 1 July 2025, EVs qualify for the higher fuel-efficient threshold only if their energy consumption is equivalent to under 3.5 L/100km, which most pure EVs meet. Plug-in hybrids (PHEVs) vary — check the manufacturer’s official combined fuel consumption figure against the 3.5 L/100km benchmark.
Who actually pays LCT — the dealer or the buyer?▼
LCT is legally owed by the dealer or importer, who then passes the cost on to the buyer as part of the vehicle price. As a private buyer, you will not see a separate LCT line item in most cases — it is embedded in the retail price. Individuals who personally import a luxury car must pay LCT directly to the Department of Home Affairs at customs clearance.
Can I avoid LCT by buying a car just under the threshold?▼
Yes, if the total LCT value of the vehicle (including accessories and extras fitted before delivery) stays below the threshold, no LCT applies. Be careful with optional extras — adding a tow bar, sunroof, or premium audio system can push the LCT value above the threshold. Always confirm the final drive-away price excludes registration and stamp duty before assessing whether LCT applies.
Is LCT the same as GST?▼
No — they are separate taxes. GST (Goods and Services Tax) of 10% applies broadly to most goods and services, including the full price of your vehicle. LCT is an additional tax of 33% that applies only to the portion of the vehicle’s value above the LCT threshold. Both taxes stack on top of each other, which is why the LCT formula divides by 1.1 (to remove GST from the excess before applying the 33% rate).
Does LCT apply to cars bought for business use?▼
Yes. LCT applies to all luxury vehicle sales regardless of whether the purchase is for business or personal use. Businesses registered for GST can claim an input tax credit (ITC) for the GST component of the purchase, but they cannot offset or reclaim LCT through their BAS — except for primary producers and tourism operators who meet specific eligibility criteria.
Does the LCT threshold change every year?▼
The threshold is indexed annually using a motor vehicle consumer price index (CPI) factor set by the ATO. From 2025, indexation for fuel-efficient and standard vehicles is aligned. The 2025–26 indexation factor was 0.997, meaning thresholds stayed flat at $80,567 (standard) and $91,387 (fuel-efficient) — unchanged from 2024–25.
I’m importing a used car. Does LCT apply?▼
LCT applies to imported vehicles that are two years old or less at the time of importation. Vehicles older than two years are generally exempt. For eligible imports, LCT is calculated on the customs value plus GST plus freight and insurance costs — and must be paid to the Department of Home Affairs during customs clearance, not to the ATO.

LCT Quick Reference

Key figures for 2025–26 at a glance.

Standard LCT Threshold
$80,567
2025–26 & 2024–25
Fuel-Efficient Threshold
$91,387
Under 3.5 L/100km (from Jul 2025)
LCT Rate
33%
On amount above threshold
Max Threshold Saving
$3,246
Fuel-efficient vs. standard
Max Primary Producer Refund
$10,000
Per financial year, 1 vehicle
Vehicle Age Limit (LCT)
2 Years
Older vehicles generally exempt
Refund Claim Window
4 Years
From date of purchase/import
Customs Duty (Typical)
5%
On most imported vehicles

References

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