Australian Border Force (ABF) has published ACN2025/13 which advises the following changes:
This Notice advises of a change to the definition of fuel-efficient vehicle under amendments to A New Tax System (Luxury Car Tax) Act 1999.
From 1 July 2025:
- a fuel-efficient car is defined as a vehicle that has a fuel consumption that does not exceed 3.5 litres per 100 kilometres as a combined rating under the vehicle standards in force under section 12 of the Road Vehicle Standards Act 2018
- indexation rates applying to the thresholds for fuel-efficient vehicles and other vehicles will be aligned
The onus is on the importer to correctly declare if the imported vehicle is a fuel-efficient vehicle.
This Notice further advises that the luxury car tax threshold for both fuel-efficient vehicles and other vehicles will not increase for the 2025-26 financial year.
From 1 July 2025, the: - luxury car tax threshold for fuel-efficient cars will remain at $91,387
- luxury car tax threshold for all other luxury cars will remain at $80,567
These thresholds will apply for the 2025-26 financial year.
For further information about the definition of fuel-efficient vehicles and LCT thresholds, visit the Australian Taxation Office website at Definitions-Luxury Car Tax and Luxury car tax rate and thresholds.
To view the COMPLETE ACN please click HERE.
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