The peak body representing franchised new car Dealers is disappointed that taxes on new cars have not been abolished, but has welcomed the luxury car tax relief provided to farmers and tourism operators.
“Today marks a missed opportunity for the Government which has failed to remove legacy taxes for an industry that is doing it tough,” said AADA CEO David Blackhall.
“New car sales have slowed significantly in recent months, hurting car Dealer businesses and their 70,000 employees”, he said.
“For years, we have been told that the abolition of the import tariff and the luxury car tax would need to wait for a return to surplus, but the announcement that we are back in the black has not been accompanied by automotive tax relief”, he said.
“It has been over 18 months since passenger car manufacturing ended in Australia, yet motorists continue to pay taxes designed to prop up a non-existent industry,” he said.
“We applaud the Government for providing relief to farmers and tourism operators by increasing the luxury car tax refund for those eligible up to $10,000”, he said.
“However, we are very disappointed that this will only apply to vehicles purchased after 1 July 2019′, he said.
“We urge the Government to apply this increased refund immediately otherwise eligible businesses will delay their purchases for the next three months, hurting the car retail industry which is already down 8 per cent this year”, he said.