26th February, 2019 · Media Release

NSW Labor’s Tax on Cars a Blow to

The New South Wales Labor Party’s policy to increase car taxes would be a blow to motorists and a struggling car retailing industry.

“This taxation proposal could not come at a worse time for NSW car Dealers who are currently doing it tough,” said AADA CEO David Blackhall.

“New car sales declined by six percent in NSW in 2018, over three times more than any other state in Australia. The industry is struggling due to drought and a tightening credit market and does not need another tax hit,” he said.

“It’s very disappointing that the NSW Labor Party is targeting an industry that employs more than 22,500 people throughout the state, including many in rural and regional electorates, and contributes more than $700 million to the state’s coffers,” he said.

“NSW motorists have made a strong contribution towards a healthy state surplus by paying rego and duties, while also shelling out GST, tolls and fuel taxes. At some stage you have to say enough is enough,” he said.

“This will be sold as a tax on luxury vehicles and it’s been suggested this proposal will target those driving Maseratis. Let’s be very clear, at that price point this tax will fall on a top selling vehicle such as the Toyota Landcruiser. A car which motorists in regional and rural areas would describe as a necessity rather than a luxury”, Mr. Blackhall said.

“This policy will also make most of the electric vehicles available in Australia significantly more expensive, which makes a mockery of any attempts to promote the uptake of electric vehicles,” he said.

“There is already a luxury car tax which is levied by the Federal Government and this duplicate tax will only add to the cost of vehicles with advanced safety and fuel efficiency features,” he said.

“This is of course, a tax on a tax on a tax – triple taxation, since stamp duty compounds on both GST and the Federal luxury car tax. It’s a bad tax, a poor policy choice and completely inappropriate given the worrying signs emerging in the NSW economy.”

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