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Australia: Consultation on draft legislation to amend fuel-efficient vehicle definition under luxury car tax

The consultation closes October 16, 2024.

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September 23, 2024

Treasury released for consultation Treasury Laws Amendment (Fairer for Families and Farmers) Bill 2024: Luxury Car Tax—draft legislation that would amend the luxury car tax (LCT) law by:

  • Reducing the maximum fuel consumption for a car to be considered fuel-efficient for purposes of the LCT to 3.5 litres/100 kilometres (from the current 7 litres/100 kilometres)
  • Amending the index number used to index the LCT threshold from all groups consumer price index (CPI) to the motor vehicle purchase sub-group of the CPI

The consultation on the draft legislation closes October 16, 2024.

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