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Luxury car tax changes from July 1

David Berthon

If you’re in the market for a so called luxury car it may pay to wait until July 1. The Federal Government has changed the thresholds at which luxury car tax applies so you could save up to $1500 by waiting to the new financial year. From July 1 the luxury car tax will apply to fuel efficient vehicles, those using less than 7.0 litres per 100km’s, after $89,332, that threshold representing an increase of $4,415. On other vehicles, it will apply from $76,950, that threshold currently $71,849. Currently, a $100,000 fuel efficient vehicle attracts $4,525 in luxury tax, from July 1 $3,200, a saving of $1,324. For other vehicles costing $100,000, you now pay $8,445 in luxury tax, from July 1, 6,915, a saving of $1,324. Welcome savings however the abolition of luxury car tax is long overdue. I’m David Berthon

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David Berthon
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