Luxury Car Tax Determination LCTD 2018/1
Date of effect: 1 July 2018

What this ruling is about: This publication provides you with the following level of protection: This publication (excluding appendixes) is a public ruling for the purposes of the Taxation Administration Act 1953 . A public ruling is an expression of the Commissioner's opinion about the way in which a relevant provision applies, or would apply, to entities generally or to a class of entities in relation to a particular scheme or a class of schemes. If you rely on this ruling, the Commissioner must apply the law to you in the way set out in the ruling (unless the Commissioner is satisfied that the ruling is incorrect and disadvantages you, in which case the law may be applied to you in a way that is more favourable for you - provided the Commissioner is not prevented from doing so by a time limit imposed by the law). You will be protected from having to pay any underpaid tax, penalty or interest in respect of the matters covered by this ruling if it turns out that it does not correctly state how the relevant provision applies to you.






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 for the 2018-19 financial year is $66,331. | 3. The fuel-efficient car limit for the 2018-19 financial year is $75,526. | Luxury car tax threshold: 4. 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] | 5. Parliament has not determined an indexation factor, so for the 2018-19 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] | 6. The indexation factor for the 2018-19 financial year is the sum of the index numbers for 2017-18, divided by the sum of the index numbers for 2016-17. Therefore, the All Groups CPI indexation factor (rounded to three decimal places) for the 2018-19 financial year [3] is: | 7. The All Groups CPI indexation factor for 2018-19 financial year is greater than 1 and therefore the luxury car tax threshold will be indexed. | 8. The luxury car tax threshold for the 2018-19 financial year is: | Fuel-efficient car limit: 9. The fuel-efficient car limit is indexed annually in line with movements in the motor vehicle purchase sub-group of the CPI [4] , unless the indexation factor is 1 or less. [5] | 10. The indexation factor for the 2018-19 financial year is the sum of the index numbers for 2017-18, divided by the sum of the index numbers for 2016-17. Therefore, the motor vehicle CPI indexation factor (rounded to three decimal places) for the 2018-19 financial year [6] is: | 11. As the motor vehicle CPI indexation factor for the 2018-19 financial year is less than 1 the fuel-efficient car limit will not be indexed. | 12. The fuel-efficient car limit for the 2018-19 financial year remains at $75,526. | Date of effect: 13. The Determination applies to the financial year commencing 1 July 2018. | Commissioner of Taxation 23 May 2018 | Footnotes: Not previously issued as a draft


Previous rulings: LCTD 2013/1 LCTD 2014/2 LCTD 2015/1 LCTD 2016/1 LCTD 2017/1
Legislative references: ANTS(LCT)A 1999 ANTS(LCT)A 1999 Div 25 ANTS(LCT)A 1999 25-1(3A) ANTS(LCT)A 1999 25-1(5) ITAA 1997 ITAA 1997 Subdiv 960-M ITAA 1997 960-270(2)