Commencing 1 July 2025, the Australian Taxation Office (ATO) have announced the Luxury Car Tax (LCT) thresholds for the financial year the car was imported, acquired or sold.
The motor vehicle consumer price index (CPI) indexation factor for the 2025-26 financial year is 0.997. Therefore, the car limit and the luxury car tax threshold for both fuel-efficient vehicles and other vehicles will not increase.
If you import or sell a car with a GST-inclusive value above these LCT thresholds, you must pay LCT except in certain circumstances. In general, the LCT value of a car includes the value of any parts, accessories or attachments you supplied, or imported, at the same time as the car.
| LCT Thresholds | ||
| Financial year | Fuel efficient vehicles | Other vehicles |
| 2025-26 | $91,387 | $80,567 |
| 2024-25 | $91,387 | $80,567 |
| 2023-24 | $89,332 | $76,950 |
In addition, due to an amendment to A New Tax System (Luxury car tax) Act 1999, from 1 July 2025, the:
- definition of a fuel-efficient vehicle will also change, affecting vehicles with a fuel consumption rate between 3.5 and 7 litres per 100km, and
- indexation rates for fuel-efficient vehicles and other vehicles will be aligned.
More information on the LCT thresholds and calculation of the LCT can be found on the ATO website.