Definitions - Luxury car tax

A car, for luxury car tax purposes, is a motor-powered road vehicle designed to carry a load of less than 2 tonnes and fewer than 9 passengers.

It does not include motorcycles or similar vehicles.

Commercial vehicles are designed for the principal purpose of carrying goods used for business or trade.

They are not subject to LCT.

Any payment made in return for the supply of a luxury car.

An eligible vehicle is a four wheel drive, or all-wheel drive, and is either:

• a 'passenger car' with a ground clearance of at least 175mm
• an 'off road passenger vehicle'.

The following vehicles are considered emergency vehicles:

• a vehicle registered in a state or territory as an emergency vehicle
• an ambulance
• a mobile intensive care ambulance (MICA) or similar vehicle is  
  • fitted with a siren and flashing warning lights
  • used to transport paramedics and equipment to the site of an accident
   
• a fire-fighting vehicle
  • designed, permanently fitted out and equipped for fighting and preventing fires
  • with external markings identifying it as a fire-fighting vehicle
   
• a police vehicle equipped with a siren and flashing warning lights
• an emergency-response or search-and-rescue vehicle
  • designed and permanently fitted out for emergency-response or search-and-rescue operations
  • with external markings identifying it as a vehicle of that kind
   
• a vehicle
  • designed and permanently fitted out for responding to and dealing with an environmental emergency
  • with external markings that identify it as a vehicle of that kind
   
• a vehicle purchased for immediate modification or conversion into a vehicle mentioned in one of the items above before its first use
• an ambulance or similar vehicle specially equipped for carrying sick or wounded animals.

A fuel-efficient car has a fuel consumption that does not exceed 7 litres per 100 kilometres as a combined rating under the vehicle standards in force under section 12 of the Road Vehicle Standards Act 2018.

The price of a vehicle excluding any luxury car tax (LCT) and any other Australian tax or Australian fee or charge other than GST and customs duty.

If you supply a car to an associate or by hire/lease, the LCT value is the full GST market value of the car (excluding any LCT and any other Australian tax or Australian fee or charge other than GST and customs duty).

Your 'net amount' is increased by the amount of LCT attributable to that tax period.

It does not include the amount of LCT payable for a taxable importation.

The term ‘price’ for LCT purposes is generally the amount of money paid for the car.

To the extent the payment for the supply is not in money, the price means the GST inclusive market value of the consideration supplied.