24th November, 2017 ยท Media Release

Queensland car tax clear case of policy
on the run

The peak body representing new car Dealers is strongly opposed to the increase in vehicle taxes announced by Queensland Labor yesterday.

Reports indicate there will be an additional $2 per $100 of dutiable value added to the transfer duty costs of buying new cars worth more than $100,000.

“Our industry was not consulted and on the eve of the election we have not been provided with any detail on this new tax. This is a clear case of policy on the run,” said AADA CEO David Blackhall.

“During this election campaign, we have seen data which shows that Queensland is the most expensive state in Australia to own and operate a motor vehicle. This thought bubble will hurt consumers and the industry,” Mr Blackhall said.

“Earlier this year, Victoria hiked stamp duty on cars without prior industry consultation or warning. The new Queensland tax, like the Victorian tax, is nothing more than an impost on retail dealers which will inevitably lead to reductions in the profitability of these businesses, and potentially job losses if those businesses are forced to cut back,” Mr Blackhall said.

“What is being proposed is the only state based luxury car tax in Australia and it will not just penalise the car buyer. Queenslanders working in the supply chain for vehicles subject to this this tax, such as sales staff, finance providers and workshop technicians, they all suffer,” Mr Blackhall said.

“The Treasurer has suggested that this new tax will target those buying Maseratis and Ferraris. Let’s be very clear, at that price point this tax will fall on a top selling vehicle such as the Toyota Landcruiser which is popular with farmers,” Mr Blackhall said.

There is already a luxury car tax which is levied by the Federal Government and this duplicate tax may lead to unintended consequences, such as jurisdiction shopping and a move away from safer, more fuel efficient vehicles.

“I wouldn’t be surprised to see motorists in South East Queensland crossing the border into New South Wales to purchase vehicles and avoid this tax, which would be a terrible result for Queensland new car dealers,” Mr Blackhall said.

“Vehicles in this price range are generally equipped with advanced safety and fuel efficiency features and it makes little sense to apply an additional tax to vehicles providing societal benefits,” he said.