A very quick note to perspective buyers of new vehicles in the high $50K range. As of July 1st, the ATO has increased the threshold of LCT (Luxury Car Tax) to $57,123.00. An increase of $114.00. This means that some vehicles that were previously affected may now avoid this tax, which for people operating cars against their business, could mean a change in the tax amount payable on their next new vehicle.
Keep in mind though, if you option up a vehicle just under this amount, and the total list price is over the threshold, you will pay LCT.
Some manufacturers, such as Lexus, have lowered the RRP on vehicles within this bracket to offset the difference, but this trend has not yet moved across the board.
If you have any concerns with this change, please check manufacturer web sites for price listings and compare this to the new figure. If your new purchase falls above the threshold, you may wish to discuss the relevance of the impact you’ll face at tax time with your accountant or leasing company.
Further details are available at: www.ato.gov.au