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

FixedNew1 yearMore details
Approval within 24 hours
  • Save the planet. Save thousands on your car loan.
  • 1% discount on qualifying electric cars
  • Required: Good credit history, stable employment history. Aus citizenship or PR.
Approval within 24 hours

Green Car Loan Fixed

  • Save the planet. Save thousands on your car loan.
  • 1% discount on qualifying electric cars
  • Required: Good credit history, stable employment history. Aus citizenship or PR.
FixedNew, Used7 yearsMore details

Hybrid and Electric Car Loan

    FixedNew, Used99 yearsMore details

    Electric Vehicle Loan (Fixed)

      VariableNew99 yearsMore details

      Green Car Loan

        Important Information and Comparison Rate Warning

        All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here.

        The comparison rates in this table are based on a loan of $30,000 and a term of 5 years unless indicated otherwise. The comparison rates for car loans and secured personal loans for the relevant amounts and terms are for secured loans unless indicated otherwise. The comparison rates for unsecured personal loans are applicable for unsecured loans only. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Comparison rates are not calculated for revolving credit products.

        Monthly repayment figures are estimates only, exclude fees and are based on the advertised rate for the term and for the loan amount entered. Actual repayments will depend on your individual circumstances and interest rate changes. Rates correct as of February 28, 2024. View disclaimer.

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