Preamble
The luxury car tax (LCT) threshold and the fuel-efficient tax limit are determined in accordance with Division 25 of the A New Tax System (Luxury Car Tax) Act 1999 (LCT Act).
From 1 July 2012, the LCT threshold is to be indexed annually according to a factor to be determined by Parliament or, if such a factor is not determined by Parliament, indexed annually in accordance with movements in the All Groups Consumer Price Index (All Groups CPI). [1]
Prior to 1 July 2012 the LCT threshold was indexed in accordance with the motor vehicle purchase sub-group of the Consumer Price Index (CPI).
Parliament has not determined an indexation factor, so for the 2013-14 financial year the LCT threshold will be indexed in accordance with movements in the All Groups CPI unless the indexation factor is 1 or less [2] .
For the 2012-13 financial year this index was 406.6 and for the 2011-12 financial year the index was 398.7 [3] resulting in an indexation factor of 1.020. For the 2012-13 financial year, the LCT threshold was $59,133 [4] . The LCT threshold for the 2013-14 financial year is $60,316 ($59,133 x 1.020).
The fuel efficient car limit is indexed annually in line with movements in the motor vehicle purchase sub-group of the CPI [5] , unless the indexation factor is 1 or less. [6]
For the 2011-12 financial year this index was 401.5 and for the 2012-13 year the index was 395.1 [7] resulting in an indexation factor of 0.984. As the indexation factor is less than 1, the fuel-efficient car limit will not be indexed. For the 2012-13 financial year, the fuel-efficient car limit was $75,375. [8] The fuel-efficient car limit for the 2013-14 financial year remains at $75,375. Note: from the September quarter 2012, the CPI series are now presented on an index reference period of 2011-12, resulting in the index numbers for each index series being reset to 100.0 for the 2011-12 financial year. Accordingly, the index for the 2011-12 financial year has changed. The index for the 2011-12 financial year in this Determination for the luxury car tax threshold and the fuel efficient car limit will not reconcile with the corresponding index for the 2011-12 financial year reflected in Luxury Car Tax Determination LCTD 2012/1 because of this change.
This Determination applies to the financial year commencing 1 July 2013.