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  • Let’s say we up the price to $500,000, if you’re feeling fancy. At $500,000, that car would attract an extra cost of around $130,000, thanks to the luxury car tax. So yeah, you could say it’s pretty expensive. - Source: Internet
  • You might be wondering why the luxury car is relevant to the average car buyer such as yourself, since it’s the importer who pays the tax, not you, the customer. But the simple fact is you do pay it, because after being taxed 33% on the extra value of that car, the seller often passes on that extra cost to you. They typically do this by adding this substantial extra cost onto the purchase price of the car. - Source: Internet
  • You can be liable to pay the luxury car tax directly to the government if you import the car yourself, which can be both time-consuming and expensive. To do this you need things like an import approval, customs clearance, quarantine inspections and of course the transportation of the damn thing. In this instance, the luxury car tax is an extra cost you need to factor in. - Source: Internet
  • The tax structure listed above does apply to all imported luxury cars nationwide, but there can also be an additional tax depending on what state you live in. For example, Victoria recently proposed an extra luxury car tax of 7% for vehicles with retail prices over $100,000 and 9% for those over $150,000. Queensland too has an additional luxury car tax, with sellers being slugged with an extra $2 per $100 over a threshold of $100,000. - Source: Internet
  • Just remember that when you’re buying a nice car from a dealership, it will come with an added cost thanks to the luxury car tax. However, the ‘driveaway price’ often includes LCT anyway. Ultimately, the LCT could mean it’s worth reconsidering if it’s necessary to buy new or if you can buy a used car instead. Only in rare cases will a used car require a LCT, and they are cheaper than new cars in general. - Source: Internet
  • Mr Voortman added: “Dealers are grateful for stimulatory measures given the sale of new cars have been contracting for 23 months in a row. We need to breathe life into this industry, and dealers believe that businesses should be able to instantly depreciate vehicles under the $150,000 threshold.” - Source: Internet
  • “And the vehicle which attracts the most LCT is a Toyota Landcruiser – a popular vehicle for families and landholders. Hardly a luxury vehicle.” - Source: Internet
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