The ATO has updated the Luxury Car Tax (LCT) thresholds for the 2013/14 financial year.

New LCT Thresholds
The LCT thresholds effective from July 1, 2013 and applicable for the 2013/14 financial year are as follows :

•  ‘Standard’ motor cars $60,316
•  ‘Fuel efficient’ motor cars $75,375 (unchanged)

The GST Input Tax Credit (ITC) on motor cars is limited to $5,224.18 (being 1/11th of the car depreciation limit which is $57,466.

What is a ‘fuel efficient’ motor vehicle?
A fuel efficient motor vehicle has a fuel consumption that does not exceed 7 litres per 100 km. This is as a combined rating under the vehicle standards in force under section 7 of the Motor Vehicle Stan

No change to the Car Depreciation Limit
The Car Depreciation Limit remains unchanged at $57,466, which means that the GST Input Tax Credit (ITC) on motor cars is limited to $5,224.18 (being 1/11 of the Car Depreciation Limit. Note: It will be possible to have a non claimable GST without LCT appearing on the invoice (i.e. purchase price $57,466 to $60,316).

For all enquires please refer to your Relationship Executive or Business Development Manager.