LCT (Luxury Car Tax) 2023-4 Update

[Stevefreestyle]

The good news it's a significant increase in the LCT Threshold for 2023-4 to $76,950 (inc GST but before / excluding Gov ORC), representing a 5.1 K increase. This translates as LESS LCT on many Mustangs.

Depending how you option your mustang, you could escape all the extortionate 33% Tax, which kicks in after $76,950.

LCT thresholds

Financial year	Fuel efficient vehicles	Other vehicles
2023–24	$89,332	$76,950
2022–23	$84,916	$71,849

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[Apeman]

I didn't even know this was a thing. Glad my car is below that limit

 

[prestj1]

This is for Australian buyers as an FYI

 

[LETHAL]

You are cursed with that, and we are cursed with Biden... LOL

 

[Stevefreestyle]

The good news it's a significant increase in the LCT Threshold for 2023-4 to $76,950 (inc GST but before / excluding Gov ORC), representing a 5.1 K increase. This translates as LESS LCT on many Mustangs.

Depending how you option your mustang, you could escape all the extortionate 33% Tax, which kicks in after $76,950.

LCT thresholds

Financial year	Fuel efficient vehicles	Other vehicles
2023–24	$89,332	$76,950
2022–23	$84,916	$71,849

Just to clarify - as LCT does NOT include (how generous!) "other Australian taxes, fees or charges such as stamp duty, transfer fees and registration - and CTP" this should mean a (NSW) Drive Away Price of approximately $81K before the LCT Threshold impacts pricing (from that point onwards).

2023-2024 Estimated (Approx') LCT Drive Away Threshold

Max Drive Away = 76,950 (LCT-PP) +2,950 (S/D) + 368 (CTP) + 48+67 + $575 Rego = 80,957
= $80,957 (TOTAL = + 575 Rego = 80,957) LCT = (LCT Sale value − LCT threshold) × 10 ÷ 11 × 33%
NSW Stamp Duty Calc: Motor vehicle registration duty calculator (nsw.gov.au) STAMP DUTY on LCT Max P.P. of $76,950 = $2,950

Luxury car tax | Australian Taxation Office (ato.gov.au)

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