LCT is charged in addition to the Goods and Services Tax (GST), but it is not payable on the full price of the vehicle.
An increased threshold of $91,387 applies to fuel efficient cars that have a combined fuel consumption rating not exceeding seven litres per 100 kilometres (based on a combined test cycle rating under ADR81).
Organisations which report and pay GST annually are only required to report LCT on their annual GST return (GSTR) Businesses are only permitted to quote their ABN when the vehicle is used for the following purposes: The LCT becomes due and payable when you on-sell the luxury car or stop using it for a quotable purpose.
This might happen if you hold a car as trading stock and start using it for private purposes or if it becomes a capital asset of your business.
[3] When you import or sell a car with a value above these thresholds, you must pay LCT except in specific circumstances.