5th March, 2019 ยท Media Release

NSW Car Tax to Hurt Already Fragile

The Australian Automotive Dealer Association (AADA), the peak body representing Australia’s franchised new car Dealers has questioned the need for the NSW Labor Party’s car tax amid new data showing the industry is doing it tough.

Data released today by a Federal Chamber of Automotive Industries shows that sales for new cars is down 8.4 percent year-to-date nationally, while the figure for NSW is a staggering 9.6 percent down year-to-date.

“Car sales are down for the 11th month in a row and given the state of the industry in NSW the last thing it needs is another tax,” said AADA CEO David Blackhall.

“Sales of premium cars have been particularly hard hit in recent months. This tax will further restrict such sales which is a shame as these cars have advanced safety and environmental features which are good for society,” he said.

“Sales of electric vehicles remain very low and this proposed new tax will further discourage the uptake of no emissions cars as it falls on most of the electric vehicles available on the Australian market,” he said.

“We remain concerned about the effect this tax will have on vehicles such as the Toyota Landcruiser, which is not a luxury car and is important to many regional motorists,” he said.

“The point has been made that only two models of Landcruiser are above the proposed thresholds, but this ignores the fact that it is one of the most accessorised vehicles in Australia and the cost of safety and off-road accessories can add thousands to the final price, pushing many vehicles over the threshold,” he said.

“There is already a federal luxury car tax and this is tax on a tax on a tax which is unwarranted and tough on the retail car industry and its customers,” he said.

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