Luxury Car Tax

​​​​The LCT threshold amount and rate requires a table so when the threshold or rate changes a history is kept.Any amendments to Import Declarations must use the threshold and rate at the Effective Duty Date for LCT calculation.

Luxury Car Tax (LCT) is calculated using the following formula:
(VOTI + GST Calculated – LCT Threshold) *1/(1+GST rate) muliplied by the LCT rate.
When the ICS was implemented the LCT rate was25% and LCT Threshold was $57, 009 however the rates are subject to change.

For the 2009/10 financial year the rate was increased to 33% however a new threshold was implemented to lower the LCT payabe on a fuel efficient vehicle (currently defined as a combined-cycle fuel consumption of less that 7L/100km).The threshold at that time was $57,180 for normal vehicles and $75,000 for a fuel efficient vehicle.

For the 2010/11 financial year the threshold was increased to $57,466 for normal vehicles and $75,375 for a fuel efficient vehicle.

The rates and thresholds are separated for fuel efficient vehicles which allows for different rates and thresholds so different LCT calculations can be applied.

To identify a fuel efficient vehicle (FEV) the user will supply a specific LCT exemption code. If the specific FEV LCT exemption code is supplied and the value of the car is below the FEV LCT threshold, then only the exemption code is required to be supplied and calculations are performed based on the exemption code.

If the value of the FEV is above the FEV LCT threshold, then the FEV LCT exemption code is required and the LCT Pay indicator must be Y for the LCT to be calculated.The calculations are done as if the exemption code has not been supplied but this allows the system to use the FEV LCT rate and threshold.The exemption code is used to pick up the FEV LCT rate and threshold.

LCT can also be quoted for FEVs. If the value of the FEV is above the FEV LCT threshold, then only the LCT Quote Indicator is required to be input.LCT exemption codes are not required when LCT is quoted.

LCT can be calculated for Nature 10 & 30 Full Declarations.

There are five LCT line fields to be calculated for each line of a declaration.

LCT can only be calculated when a "LCT goods" characteristic code is listed against a statistical code of a tariff classification.LCT will only be calculated when one of the following is true:

1. The user has input LCT=Y on the line of the declaration
2. The user has input LCT Quote =Y on the line of the declaration
3. The user has input a valid LCT Exemption code on the line of the declaration

Note that for LCT to be calculated the unit of quantity must be 1.

The five LCT line fields are:

1. Line Calculated LCT Amount- is equal to the (line VOTI + line Calculated GST Amount- LCT Threshold) *1/(1+GST rate) multiplied by the LCT rate.If the LCT is quoted or the importer claims an exemption by using a LCT exemption code (unless the exemption code is for fuel efficient vehicles and the pay indicator is Y), then the amount is zero.
2. Line Payable LCT Amount- set to Line LCT Calculated Amount when the importer has not set the LCT Quote indicator.
3. Line Exempted LCT Amount- is equal to the (Line VOTI + Line Calculated GST Amount- LCT Threshold) *1/(1+GST rate) multiplied by the LCT rate when the importer claims an exemption by using a LCT exemption code (unless the exemption code is for fuel efficient vehicles and the pay indicator is Y).
4. Line Standard LCT Amount- is equal to the (Line Standard VOTI + Line Standard GST Amount- LCT Threshold) *1/(1+GST rate) multiplied by the LCT rate.If the LCT is quoted or the importer claims an exemption by using a LCT exemption code (unless the exemption code is for fuel efficient vehicles and the pay indicator is Y), then the amount is zero.
5. Line General LCT Amount- is equal to the (Line General VOTI + Line General GST Amount- LCT Threshold) *1/(1+GST rate) multiplied by the LCT rate.If the LCT is quoted or the importer claims an exemption by using a LCT exemption code (unless the exemption code is for fuel efficient vehicles and the pay indicator is Y), then the amount is zero.

In the scenario of a temporary import the LCT amount payable is zero and the security concession amount includes the Line Calculated LCT Amount as well as any Duty or GST calculated.

The following tables shows what values will be calculated for each field in the following scenarios:

• Importer pays LCT,
• Import Quotes LCT,
• Importer uses LCT exemption Code,
• Non-taxable and,
• Temporary Import.

Standard LCT Calculations:

• LCT rate of 33%,
• LCT threshold of $57, 466,
• Line VOTI = $70,000,
• Line Payable GST = $7,000,
• Line Standard VOTI = $80,000,
• Line Standard GST = $8,000,
• Line General VOTI = $100,000,
• Line General GST = $10,000.

Fuel Efficient Vehicle LCT Calculations:

• LCT rate of 33%,
• FEV threshold of $75,000,
• Line VOTI = $90,000,
• Line Payable GST = $9,000,
• Line Standard VOTI = $100,000,
• Line Standard GST = $10,000,
• Line General VOTI = $120,000,
• Line General GST = $12,000.

V1.4 06 SEP 2010