The Luxury Car Tax (LCT) is now $63,184, up from $61,884. This means small savings for expensive cars.
The LCT is included in the price of cars that cost more than the LCT limit. As the limit is now raised to $63,184, then that means cars more expensive than that amount cost the manufacturer $390 less. BMW and Audi are passing that saving directly on to the consumer.
The related fuel-efficient vehicle tax break is not changed and remains at $75,375. “Fuel efficient”means cars that have an ADR81/02 combined cycle fuel consumption of 7.0L/100km or less.
We’ll leave comment on the LCT and the fuel-efficient tax break for another time, but meanwhile it is good to see BMW and Audi passing the savings on.
