Luxury Car Tax (LCT) Australia 2026: What Importers Pay

LCT is an Australian federal tax charged at 33% on the part of a car's value above the LCT threshold. It applies to imported cars as well as locally sold ones, and is collected by the Australian Border Force together with customs duty and GST.

The ATO sets the thresholds each financial year, with a higher threshold for fuel-efficient vehicles. Always check the current ATO figure for 2026–27 before you calculate.

The LCT value is built from the customs value plus shipping, insurance, customs duty and GST. Tax is then charged at 33% on the amount above the threshold (on the GST-exclusive portion).

Example: if a car's LCT value is AU$20,000 above the threshold, LCT is roughly AU$6,000.

Most imported passenger cars pay 5% customs duty (0% for cars from countries with a free trade agreement, including the UK under the Australia–UK FTA where origin rules are met), then 10% GST, then LCT if above the threshold.

LCT applies to cars under two years old at import and to most others above the threshold, but cars imported by an owner under certain personal-import pathways and some vintage vehicles may be treated differently. Get a customs broker's calculation before you ship.