Australia: Luxury car tax threshold rises for FY 2022-23

Luxury car tax threshold will rise by 6.6% for fuel-efficient vehicles and 3.9% for other vehicles

The luxury car tax threshold for FY 2022-23 is $84,916 and $71,849 for fuel-efficient vehi

The luxury car tax threshold will rise by 6.6% for fuel-efficient vehicles and 3.9% for other vehicles that are imported, acquired, or sold in the 2022-23 financial year (FY), as compared to the previous financial year’s threshold.

According to the Australian Taxation Office (ATO), the luxury car tax threshold for FY 2022-23 is $84,916* and $71,849 for fuel-efficient vehicles and other vehicles respectively.

The luxury car tax threshold is indexed on 1 July each year and is based on any increases in the motor vehicle purchase sub-group of the consumer price index (CPI). 

According to the ATO, a fuel-efficient vehicle is one that “has a fuel consumption that does not exceed seven litres per 100 kilometres as a combined rating.”

*$ = Australian dollar

 

 

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