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by Matt Brogan

The Australian Taxation Office is continuing to look into a loophole linked to the Luxury Car Tax (LCT).

Earlier this month it was revealed that if licensed motor car traders (LMCTs) own a car for more than two years before it is sold for the first time then no LCT is due.

The LCT adds 33 per cent to every dollar spent above $57,180.

The threshold is raised to $75,000 for ‘fuel efficient’ cars – those that have a combined fuel consumption rating not exceeding 7.0 litres/100km combined.

LMCT holders can also avoid paying stamp duty on their new cars, and naturally the savings increase with the prices.

For example, a $64,340 Citroen C5 2.7 HDi Exclusive cops $2150 LCT taking it to an RRP of $66,490.

Stamp duty ranges from $2327.15 to $4321.85 depending on which state it is purchased in.

Something a little more luxurious, like a $216,100 Jaguar XKR Convertible, pushes the LCT out to around $47,500 and stamp duty to as much as $17,121.

And a $680,000 Lamborghini Murciélago LP640 Roadster E-gear gets a whopping $131,000 piled on in total.

Although it probably won’t bother you in the slightest if can afford the best part of one million clams for a Lambo anyway.

by Tim Beissmann