Australia’s luxury car tax changes from 1 July 2025
What this means for you
This update is expected to impact a wide range of models—especially hybrid and plug-in hybrid vehicles that fall between the old and new thresholds. Only a small number of ultra-efficient or electric vehicles will continue to qualify for the higher LCT threshold.
How Prosperity Smart Drive can help
With a novated lease through Prosperity Smart Drive, you may still be able to reduce the overall cost of vehicle ownership, even if your chosen vehicle is now subject to LCT. Our leasing specialists can help you:
Maximise tax savings through salary packaging.
Access fleet pricing and running cost discounts.
Offset LCT impact with smarter finance structuring.
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Whether you’re looking to maximise tax savings, simplify your car expenses, or switch to an EV, Prosperity Smart Drive can help you find the right novated lease solution.