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.