Luxury Car Tax Determination LCTD 2013/1
Date of effect: 1 July 2013

What this ruling is about: Ruling 1. The luxury car tax (LCT) threshold and the fuel-efficient tax limit are determined in accordance with Division 25 of the A New Tax System (Luxury Car Tax) Act 1999 (LCT Act). Luxury car tax threshold 2. From 1 July 2012, the LCT threshold is to be indexed annually according to a factor to be determined by Parliament or, if such a factor is not determined by Parliament, indexed annually in accordance with movements in the All Groups Consumer Price Index (All Groups CPI). [1] 3. Prior to 1 July 2012 the LCT threshold was indexed in accordance with the motor vehicle purchase sub-group of the Consumer Price Index (CPI). 4. Parliament has not determined an indexation factor, so for the 2013-14 financial year the LCT threshold will be indexed in accordance with movements in the All Groups CPI unless the indexation factor is 1 or less [2] . 5. For the 2012-13 financial year this index was 406.6 and for the 2011-12 financial year the index was 398.7 [3] resulting in an indexation factor of 1.020. For the 2012-13 financial year, the LCT threshold was $59,133 [4] . The LCT threshold for the 2013-14 financial year is $60,316 ($59,133 x 1.020). Fuel efficient car limit 6. The fuel efficient car limit is indexed annually in line with movements in the motor vehicle purchase sub-group of the CPI [5] , unless the indexation factor is 1 or less. [6] 7. For the 2011-12 financial year this index was 401.5 and for the 2012-13 year the index was 395.1 [7] resulting in an indexation factor of 0.984. As the indexation factor is less than 1, the fuel-efficient car limit will not be indexed. For the 2012-13 financial year, the fuel-efficient car limit was $75,375. [8] The fuel-efficient car limit for the 2013-14 financial year remains at $75,375. Date of effect 8. This Determination applies to the financial year commencing 1 July 2013. Commissioner of Taxation 22 May 2013






Footnotes: Not previously issued as a draft.


Related rulings: LCTD 2003/1 LCTD 2004/1 LCTD 2005/1 LCTD 2006/1 LCTD 2007/1 LCTD 2008/1 LCTD 2009/1 LCTD 2010/1 LCTD 2011/1 LCTD 2012/1
Legislative references: ANTS(LCT)A 1999 Div 25 ANTS(LCT)A 1999 25-1(3A) ANTS(LCT)A 1999 25-1(5) ITAA 1997 Subdiv 960-M ITAA 1997 960-270(2)
Subject references: car limit consumer price index luxury car tax threshold