The Luxury Automobile Tax (LCT) threshold has increased for the 2024-25 financial 12 months, which should mean lower prices for varied models on the brand new automobile market.
The LCT threshold for the vast majority of vehicles – those which eat greater than 7.0L/100km, and excluding industrial vehicles, campervans, motorhomes, emergency vehicles and vehicles with modifications for individuals with a disability – is now $80,567 for FY2024-25, up from $76,950.
As well as, the brink for fuel-efficient and zero-emissions vehicles – which quote a fuel consumption figure of seven.0L/100km or less – is up from $89,332 to $91,387.
Businesses which sell or import cars with a GST-inclusive value above the LCT threshold are required to pay the tax, which is charged at 33 per cent per dollar above the brink and sometimes passed on to latest automobile buyers.
As such, models which might be now exempt from the tax could change into cheaper, although manufacturers are inside their rights to offset the exemption with price hikes.
Popular models that headline the list of cars newly exempt from LCT include the Ford Everest Platinum, Ford Mustang GT, and Hyundai Palisade Calligraphy.
Within the efficient vehicles bracket, a pair of Lexus SUVs, a Mercedes-Benz and an Audi are actually exempt from LCT.
Per pricing available online on July 4, 2024, the next vehicles are actually exempt from LCT:
The eligibility criteria for vehicles to be considered ‘fuel-efficient’ is ready to vary from July 1, 2025 following the introduction of the Federal Government’s Latest Vehicle Efficiency Standard (NVES) from January 1.
The edge is ready to be halved from 7.0L/100km to three.5L/100km, which can significantly reduce the variety of vehicles exempt from LCT.
This Article First Appeared At www.carexpert.com.au
