Audi, BMW, Porsche, Toyota To Pass On LCT-Related Savings Photo:

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Tony O'Kane | Jul, 02 2015 | 3 Comments

With the Federal Government's increase to the luxury car tax (LCT) threshold now in effect, serveral manufacturers are already starting to pass on the savings to their customers.

Starting from 1 July, the LCT threshold has been raised by $1300 to $63,184. The current LCT rate is 33 percent on the value of a car above the LCT threshold.

There is a catch, however. The threshold for ‘fuel-efficient’ cars (those consuming under 7.0 l/100km on the combined cycle), remains unchanged at $75,375. For those cars, the amount of LCT payable remains the same.


RS 6 now $390 more affordable - not that you needed an excuse to want one



Audi Australia has passed on the full saving on all of its models affected by the luxury car tax, with the exception of those which consume less than 7.0 l/100km.

“We see any reduction in the Luxury Car Tax (LCT) payable by our customers as a positive move,” said Andrew Doyle, Managing Director of Audi Australia.

“The concession isn’t a huge sum of money, however we are not in favour of any tax that penalises luxury vehicle owners any more than buyers of other luxury items, therefore we are very pleased pass along any form of LCT reduction to our customers."

Audi's new pricing is already in effect and applies to all orders made from July 1.




BMW Australia pre-emptively factored the LCT changes into its updated M135i and 6 Series pricing when both models launched last month, but now all other "non fuel-efficient" models in its range above the new LCT threshold now wear savings of $390.

BMW Australia CEO Marc Werner said passing on the LCT savings was the right thing to do.

“While the fuel savings afforded by our BMW EfficientDynamics technologies means the changes only apply to select vehicles within our model range, we are committed to acting in the best interests of our customers," Werner said.




Porsche has gone a step further than other brands by rounding the LCT savings up to an even $400, which now applies to all of its models that consume more than 7.0 l/100km.

That means every Porsche besides the Macan S Diesel, Cayenne Diesel, Panamera Diesel and the S E-Hybrid variants of the Cayenne and Panamera are all $400 cheaper than before.

Hardly a huge discount for the average Porsche buyer, but it's the most generous LCT-related price cut that's been anounced thus far.




Despite the term "luxury" car tax, the impost doesn't just apply to manufacturers from the top end of town.

Even models from that most prosaic of brands, Toyota, are affected by LCT, and the Japanese brand has been the first non-luxury automaker to announce price changes as a result of the LCT threshold shift.

Starting from this month, prices of the Prado VX and Kakadu, every Landcruiser 200-Series variant and the Tarago Ultima are reduced by $390. The Prado Altitude special edition also gets a $390 markdown.

The Kluger Grande AWD is also reduced by $390, but its 2WD stablemate only gets a price cut of $377 due to it now falling under the LCT threshold.

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