LCT threshold and fuel-efficient car limits for 2023-24; ATO guidance

The ATO has issued a media release setting out the luxury car tax (“LCT”) thresholds for the 2023-24 income year. There are two thresholds, ie for:

• fuel efficient vehicles – $89,332 (up from $84,916 in 2022-23); and
• other vehicles – $76,950 (up from $71,849 in 2022-23).

The ATO has also released a worksheet setting out how to calculate the LCT liability on the sale of a vehicle, which includes a detailed example using the 2023-24 threshold.

A third worksheet sets out the calculation when the vehicle is imported (including the interaction with customs duty, and how and when to pay it).