As reported in the Australian this week it seems the luxury car tax could
soon be abolished as the re-elected Government gets calls from the
European Union to speed things up on a proposed free trade agreement.
For so long a thorn in the side of the car industry the Luxury Car tax most
affecting European imports and depending on the vehicles sticker price
adding 33 cents for every dollar it is over a threshold of $91,387 on fuel
efficient vehicles, and on all others that average more than 7L/100km,
$80,567. To make matters worse from July 1, the fuel consumption figure
will lower to 3.5L/100 trapping a number of previously exempt models.
Luxury car tax was implemented to protect our local industry which no
longer exists – the Governments problem, how to replace the $1.2 billion
dollars it generates. I’m David Berthon