11th January, 2018 · Media Release

AADA calls for Abolition of New Car

The Australian Automotive Dealer Association (AADA) has urged the Federal Government to abolish inefficient taxes which apply to the sale of safe, clean and reliable new cars. 

The cessation of passenger vehicle manufacturing in Australia late last year provides the Government with the opportunity to modenise the taxation of new cars and encourage renewal of Australia’s vehicle fleet.   

“The passenger vehicle tariff and the luxury car tax are both relics of the past, which were designed for a time when Australia had a vehicle manufacturing capability.  

“Local manufacturing no longer exists and these taxes merely make new vehicles more expensive,” said AADA CEO David Blackhall. 

“New cars are already more safe, clean and efficient; abolishing these taxes will also make them more affordable,” said Mr Blackhall. 

“The sale of new cars brings significant societal benefits as they are safer, more environmentally friendly and more fuel efficient. Improving road safety, reducing vehicle emissions and bringing down energy costs for consumers are all Government priorities and making new vehicles more affordable will assist in achieving these goals,” Mr Blackhall said. 

In recent months, a number of state governments have announced significant increases to duty on the sale of a car, including a proposal by the Queensland Government to impose the country’s first state-based luxury car tax.  

“Increased taxes on the sale of new cars by various levels of government simply hurt the consumer and also hurt many of the people working in the automotive industry, such as sales staff, finance providers and workshop technicians,” Mr Blackhall said. 

“The Federal Government through the upcoming Budget has the opportunity to show leadership and remove inefficient taxes which make cars more expensive and undermine efforts to renew the vehicle fleet,” said Mr Blackhall. 

To read a copy of the AADA’s 2018-19 Budget Submission, please click here. 


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