Who must pay Luxury Car Tax (LCT) on vehicles above threshold?
The applicability test for Pay Luxury Car Tax (LCT) on vehicles above threshold (ATO), computed across 35 industries, 9 business structures and 6 size bands.
Short answer: Specialised
Applies to dealers and importers of luxury cars — not asked. The Rules Mate questionnaire does not treat this as an obligation for an ordinary business.
What the obligation is
LCT at 33% on the GST-inclusive value of luxury cars above LCT threshold.
A New Tax System (Luxury Car Tax) Act 1999. LCT 33% on portion above LCT threshold. FY26 thresholds: $91,387 (fuel-efficient vehicles); $80,567 (other cars). Reported via BAS.
The applicability test
Applies to dealers and importers of luxury cars — not asked. The Rules Mate questionnaire does not treat this as an obligation for an ordinary business.
How the regulator frames it: Importers + dealers + business buyers above threshold.
What triggers it: Importing/selling/leasing a luxury car.
Jurisdiction: Commonwealth law, so the test is the same in every state and territory.
Which industries are in or out
Outcome across the 35 industries Rules Mate maps (35 of 35: no).
The answer is the same in every industry: no. Industry does not change who must comply.
Business structure and size
Structure does not change the answer across all industries: for every structure the answer is "no".
Size does not change the answer across all industries: at every size band the answer is "no".
Worked examples
Each line is one run of the Rules Mate applicability engine for a single business profile, with the reason the engine gives:
- Pty Ltd company in real estate agents with 6–19 employees, turnover $1M–$3M: does not apply. Applies to dealers and importers of luxury cars — not asked.
What you must do, and when
- When due
- Per BAS.
- Frequency
- Quarterly
- Evidence to keep
- LCT calculations; vehicle valuation; fuel-efficient eligibility evidence.
- Status
- Current
- Priority
- Medium
Penalty for not complying
Maximum penalty: Shortfall penalties + interest.
Audit or assurance level
Rules Mate has not yet classified the audit or assurance level for this obligation. Any audit, review or certification requirement is set by the regulator source listed below.
Where it sits in the corpus
Rules Mate tracks 37 published obligations tagged "tax", 6 of them rated critical. For a professional services Pty Ltd company with 6–19 employees operating in every state, 7 of those apply outright. This obligation is rated medium priority, and is a quarterly obligation.
Regulator, legislation and tools
Regulated by Australian Taxation Office.
ATO: Federal tax administrator covering income tax, GST, PAYG, FBT, superannuation guarantee, STP, and self-managed super funds. Also administers the Director ID regime via ABRS.
Free tools that help with this obligation:
Questions
- Who must pay Luxury Car Tax (LCT) on vehicles above threshold?
- Applies to dealers and importers of luxury cars — not asked. The Rules Mate questionnaire does not treat this as an obligation for an ordinary business.
- Do sole traders need to pay Luxury Car Tax (LCT) on vehicles above threshold?
- No. Across every industry and every size band, the engine's answer for a sole trader is: no.
- Do businesses with 1–5 employees need to pay Luxury Car Tax (LCT) on vehicles above threshold?
- No (1–5 employees, turnover $100K–$1M).
- When is "Pay Luxury Car Tax (LCT) on vehicles above threshold" due?
- Per BAS.
Related
Sources
Computed by the Rules Mate applicability engine from the published obligation corpus; facts last checked 3 October 2026. Rules Mate is not a law firm and this is general information, not legal advice. Confirm your position with the regulator source or a qualified adviser before acting.