Luxury car tax (LCT) is a 33% tax on cars with value (including GST) above our set threshold. This tax only applies to the portion of the car’s value that is above the threshold, not the total value of the car.

LCT is paid by businesses that sell or import luxury cars (dealers), and also by individuals who import luxury cars.

Reporting and paying GST instalments

If you report and pay GST using Option 3: Pay GST instalment amount and report annually, don’t complete the LCT section of your BAS. Your LCT will be included in your GST instalment amount.

However, you will still need to report LCT payable (1E) and LCT refundable (1F) when lodging your Annual GST Return. This is due at the same time as your income tax return.

Reporting and paying GST annually

If you report and pay GST annually you don’t have to report LCT on a monthly or quarterly BAS. You’ll only need to report LCT on your Annual GST Return.

Next steps:

Who needs to pay LCT and who can defer paying it?

See also:

Luxury car tax
LCT – how to complete your activity statement labels



(Australian Taxation Office)