Car & Driving
Luxury Car Tax (LCT) Calculator
Calculate the Luxury Car Tax payable on a new vehicle purchase in Australia for the 2024-25 financial year, including the higher threshold for fuel-efficient vehicles.
Enter the drive-away price including or excluding GST (select below)
Our pick
KAWA 2K Dash Cam with Voice Control
Protect your new investment from day one.
We independently recommend products. We may earn a commission at no extra cost to you.
One thing worth considering with a new car: the The Barefoot Investor (Classic Edition) ($19.00, 4.8★ from 8.2K reviews) is worth a look. Affiliate link
FAQ
Frequently asked questions
What is Luxury Car Tax (LCT)?
LCT is a federal tax applied to luxury vehicles sold in Australia above a set threshold. For 2024-25, the threshold is $76,950 for standard vehicles and $89,332 for fuel-efficient vehicles (electric and hybrids). LCT is charged at 33% on the amount above the threshold, calculated as: (GST-inclusive price − threshold) × 33 ÷ 133.
Do electric vehicles attract LCT in Australia?
Electric vehicles are subject to LCT, but at a higher threshold of $89,332 for 2024-25 (compared to $76,950 for standard vehicles). This means many EVs that would attract LCT under the standard threshold are exempt under the fuel-efficient threshold.
Who pays LCT — the buyer or the dealer?
Technically the dealer pays LCT to the ATO and passes the cost on to the buyer in the vehicle price. You'll see it as a line item on the contract or included in the total drive-away price.
Can businesses claim back LCT?
Businesses can only claim back LCT if the vehicle is used for a purpose that attracts a LCT credit — for example, a primary producer or tourism operator. For most businesses, LCT is a non-refundable cost.
Related
Related calculators
Car Loan Calculator
Calculate car loan repayments, total interest, and the cost impact of a balloon payment.
Open calculatorNovated Lease Calculator
Calculate the tax savings and net fortnightly cost of a novated lease versus buying a car outright, using 2024-25 Australian tax brackets.
Open calculatorCaravan Loan Calculator
Calculate monthly repayments, total interest, and true cost of a caravan loan in Australia, with a term comparison table and balloon payment example.
Open calculatorLearn
Related articles & guides
How Australian Income Tax Works: A Plain-English Guide
Australia's income tax system uses progressive tax brackets, meaning the more you earn, the higher the rate applied to each additional dollar. Here's how it actually works.
Read moreTake-Home Pay in Australia: What Actually Hits Your Bank Account
Your salary and your take-home pay are two very different numbers. This guide breaks down every deduction between your gross income and the dollars you actually spend.
Read moreThe Medicare Levy Explained: Who Pays It and How Much
Most Australians pay a 2% Medicare Levy on their taxable income every year — but many don't fully understand when it applies, who's exempt, and when the extra Medicare Levy Surcharge kicks in.
Read moreCredit Card Debt Payoff Strategies: The Fastest Ways to Get Debt-Free
Credit card interest rates in Australia average around 20% — one of the most expensive forms of debt you can carry. Here are the proven strategies to pay it off faster and save thousands in interest.
Read more