The LCT payable is calculated by the following method:
Calculate the amount of luxury car tax payable for cars supplied in the current tax period, using the following formula for each car:
(Luxury car tax value - Luxury car tax threshold)
The Luxury car tax value is the price of the car excluding:
any luxury car tax for that supply, and
any other Australian tax, + fee or charge, other than GST and customs duty, payable on the supply.
If a car is supplied that is GST-free because the supply is to a disabled person (under the GST Act), the GST that would have been payable had that supply not been made to a disabled person must be included in the luxury car tax value.
Calculate any increasing adjustments to the amount of luxury car tax previously paid.
An increasing luxury car tax adjustment occurs when the corrected luxury car tax payable is more than the luxury car tax previously payable. The amount of luxury car tax payable needs to be increased if any of the following changes have occurred after the taxable supply or importation:
There is an increase in the price of the car after the luxury car tax was included in a previous activity statement.
The ABN was quoted at the time of the purchase or importation and the car is now used for a purpose other than a quotable purpose.
Previously there was a decreasing adjustment and the car is now used for a purpose other than a quotable purpose.
A decreasing adjustment in respect of bad debts was claimed but the debt has since been completely or partly recovered. (This also applies to debts due for 12 months or more.)
An increasing adjustment will also have to be made for the amount of GST. Subtract the luxury car tax previously paid from the amount currently payable.
Add the amount of luxury car tax payable (Step 1.) to the increasing luxury car tax payable (Step 2.) and enter the amount at Label 1E.