How To Avoid Luxury Car Tax

How To Avoid Luxury Car Tax

Luxury Car Tax (LCT) is a tax applied in some countries (like Australia) on cars above a certain value threshold. To help you better, could you please specify which country you’re referring to? The rules vary a lot depending on the jurisdiction.

Generally, though, here are some common strategies people consider to legally reduce or avoid Luxury Car Tax:

1. Buy a Car Below the LCT Threshold

• The simplest way is to buy a vehicle priced below the LCT threshold. For example, if the threshold is $70,000, buying a car priced at $69,999 avoids the tax.

2. Buy a Commercial Vehicle

• Some commercial vehicles, such as utes or vans used mainly for business, may be exempt from LCT.

3. Use the Vehicle for Business Purposes

• In some places, if the car is used predominantly for business, you might get exemptions or rebates.

4. Import Used Vehicles

• Some used imported cars might not attract LCT, especially if they’ve depreciated below the threshold.

5. Buy a Car Designed for People with Disabilities

• Some special purpose vehicles may be exempt.

6. Lease Instead of Buy

• Leasing a luxury car might shift the tax burden or reduce upfront LCT payable.