For LCT, you need to complete the following labels:
1E – Luxury car tax
Include at 1E all the LCT that you have to pay for the current reporting period.
Generally, you calculate this amount for each luxury car as follows:
Step 1: Take the LCT value (price including GST, before LCT is added).
Step 2: Deduct the LCT threshold.
Step 3: Multiply this amount by 10/11 to exclude GST.
Step 4: Multiply the result by 33% to work out the LCT payable.
Step 5: Add the LCT value and the LCT payable to work out the total amount that you charge a customer for the luxury car.
In some cases (for example, second hand cars) LCT may have been previously payable on the car. The LCT payable on the sale that you make may be reduced by the amount previously payable.
Increase in LCT amount
Also include at 1E any increases to the amount of LCT that was payable on a previous business activity statement (BAS). These are known as increasing adjustments. This might arise if any of the following occur:
- there has been an increase in the price of the car
- you quoted your ABN when you purchased or imported the car and used it for a non-quotable purpose
- you recovered a bad debt in relation to a luxury car
- you previously had a decreasing adjustment and now use the luxury car for a non-quotable purpose.
You will also need to make an adjustment for the amount of GST.
If you have nothing to report at 1E, leave the label blank.
See also:
1F – Luxury car tax refundable
Include at 1F any adjustment to LCT that was paid by you in an earlier tax period if a change of circumstances means LCT is now refundable. This can happen if any of the following occur:
- there is a decrease in the price of the car
- you have written-off a bad debt in relation to a luxury car or a debt has been overdue for 12 months or more
- you did not quote your ABN at the time of the purchase or import and the following applies:
- you intend to use the vehicle for a quotable purpose
- you have used the vehicle for a quotable purpose only
- the sale is cancelled.
You will also need to make an adjustment for the amount of GST.
If you have nothing to report at 1F, leave the label blank.
See also:
You account for LCT when you complete your business activity statement for GST, using the same tax period. You complete the LCT section of your business activity statement using the following labels:1E - Luxury car tax (tax payable) and 1F – Luxury car tax refundable.