Luxury Car Tax Determination LCTD 2014/2
Date of effect: 1 July 2014







Ruling: 1. The luxury car tax (LCT) threshold and the fuel-efficient car limit are determined in accordance with Division 25 of the A New Tax System (Luxury Car Tax) Act 1999 (LCT Act). | 2. The LCT threshold is 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. Parliament has not determined an indexation factor, so for the 2014-15 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] | 4. For the 2012-13 financial year the index was 406.6 and for 2013-14 financial year this index was 417.0 [3] resulting in an indexation factor of 1.026. For the 2013-14 financial year, the LCT threshold was $60,316. [4] The LCT threshold for the 2014-15 financial year is $61,884 ($60,316 x 1.026). | Fuel efficient car limit: 5. 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] | 6. For the 2012-13 financial year this index was 395.1 and for the 2013-14 financial year the index was 384.6 [7] resulting in an indexation factor of 0.973. As the indexation factor is less than 1, the fuel-efficient car limit will not be indexed. For the 2013-14 financial year, the fuel-efficient car limit was $75,375. [8] The fuel-efficient car limit for the 2014-15 financial year remains at $75,375. | Date of effect: 7. This Determination applies to the financial year commencing 1 July 2014. | Commissioner of Taxation 18 June 2014 | 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 LCTD 2013/1
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