Budget 2008-09: Luxury Car Tax
21.10.08
The Government’s Bill to increase the luxury car tax (LCT) has received enactment. The amendments in the Bill apply from 1 July 2008.
The LCT regime changes include:
- increasing the LCT from 25% to 33%;
- exempting fuel-efficient vehicles that do not exceed the fuel-efficient car limit from the LCT ($75,000 for 2008/09);
- providing for refunds of the increase in LCT to eligible primary producers and tourism operators;
- providing for CPI indexing of the LCT threshold from 1 July 2012; and
- ensuring vehicles ordered before 7.30pm (AEST) on 13 May 2008, but not delivered until after 1 July 2008 are not subjected to the increase in tax.
