The Australian Automotive Dealer Association (AADA) is disappointed that the Federal Budget has retained inefficient new car taxes and missed the opportunity to reward consumers and local businesses.
“The first budget since the cessation of local passenger vehicle manufacturing provided the Government with an opportunity to modernise the taxation regime for new cars,” said AADA CEO David Blackhall.
“Unfortunately, both the passenger vehicle tariff and the luxury car tax remain on the books and will collectively generate almost $1.3 billion in 2018-19, significantly more than previously forecast,” Mr Blackhall said.
“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 are all Government priorities and these taxes hinder progress towards these goals,” Mr Blackhall said.
“Increased taxes on the sale of new cars by various levels of government simply force consumers to pay more and in the process hurt many of the people working in the automotive industry, such as sales staff, finance providers and workshop technicians,” Mr Blackhall said.
‘We support the Government’s ongoing commitment to extend company tax cuts to firms with turnover over $50 million. Due to the high value of their stock, new car franchised dealers often have high turnover, but much lower profit margins and a corporate tax cut would benefit local car dealers and the tens of thousands of people they employ,” Mr Blackhall said.