Luxury car tax threshold raised again for electric vehicles

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on June 01, 2021
Luxury car tax threshold raised again for electric vehicles

The federal government has raised the luxury car tax threshold for 'fuel efficient' vehicles for the 2021-22 financial year.

The threshold - raised for the second year in a row - now sits at $79,659, up from $77,565 the previous financial year.

'Fuel efficient' vehicles in the government's eyes are vehicles consuming less than 7L/100km on a combined cycle.

The regular threshold also got bumped from $68,740 last financial year, up to $69,152 in the new financial year.

The luxury car tax (LCT) is essentially a 33% tax for the cost of the vehicle above this threshold. 

Since Holden and Ford ceased production on Australian shores, the LCT has proven unpopular, with many industry lobbies calling for its end.

Taxation on electric vehicles (EVs) has also been a contentious topic recently, with Victoria moving to introduce a road-use charge on EVs, while at the same time introducing a $3,000 subsidy.


In the market for a new 'green' car? The table below features car loans with some of the lowest interest rates on the market for fuel-efficient vehicles.

Lender
Advertised rate Comparison rate* Monthly repayment Interest TypeVehicle TypeMaximum Vehicle AgeOngoing FeeApplication FeeTotal RepaymentEarly RepaymentInstant ApprovalOnline Application

FixedNew1 yearMore details

Green Car Loan

FixedNew2 yearsMore details
QUICK APPLICATION PROCESS WITH NO FEES

New Vehicle Fast Loan Low Rate

  • Quick application process and no monthly fees
  • Low fixed interest rates with terms of up to seven years
  • New car loans cover cars up to 3 years old
QUICK APPLICATION PROCESS WITH NO FEES

New Vehicle Fast Loan Low Rate

  • Quick application process and no monthly fees
  • Low fixed interest rates with terms of up to seven years
  • New car loans cover cars up to 3 years old
FixedNew1 yearMore details
No ongoing fees

Plenti Car Loan

  • Interest rates ranked in the best 20%
  • No ongoing fees
  • Can apply online
No ongoing fees

Plenti Car Loan

  • Interest rates ranked in the best 20%
  • No ongoing fees
  • Can apply online
FixedNew, Used5 yearsMore details

Fixed Car Loan (with Low Emission Vehicle discount)

Base criteria: fixed and secured car loans for 'low emission' cars. Data accurate as at 01 September 2020. Rates based on a loan of $30,000 for a five-year loan term. Products sorted by advertised rate. Repayments are calculated based on advertised rates. *The Comparison rate is based on a $30,000 loan over 5 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of January 25, 2022. View disclaimer.


Photo by Dmitry Novikov on Unsplash 

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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author-avatar
Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison is passionate about breaking down complex financial topics for the everyday consumer.

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