Most people have this query that how much tax they should pay if they own a luxury car. Our expert agents have compiled all important information from the ATO portal and put it here.
Luxury car tax (LCT) is a 33% tax on cars with value (including GST) above our set threshold. This tax only applies to the portion of the car’s value that is above the threshold, not the total value of the car.
LCT is paid by businesses that sell or import luxury cars (dealers), and also by individuals who import luxury cars.
Reporting and paying GST installments
If you report and pay GST using Option 3: Pay the GST installment amount and report annually, don’t complete the LCT section of your BAS. Your LCT will be included in your GST installment amount.
However, you will still need to report LCT payable (1E) and LCT refundable (1F) when lodging your Annual GST Return. This is due at the same time as your income tax return.
Reporting and paying GST annually
If you report and pay GST annually you don’t have to report LCT on a monthly or quarterly BAS. You’ll only need to report LCT on your Annual GST Return.