On Thursday 16 August, Senator Bernardi raised concerns in the Senate about luxury car tax imposed on new cars.
AADA supports the basic points made by Senator Bernardi. Our policy stance, consistently communicated to the government and in the media remains unaltered: both the tariff and the LCT should go.
According to the Australian Bureau of Statistics, there were 19 million registered vehicles on the road last year. 74.7 percent or 14 million of these were light passenger vehicles with an average age of around 10 years. These legacy taxes force up new car prices making it more expensive for Australians to drive cheaper, safer and more environmentally friendly new vehicles.
According to VFACTS, around 147 thousand vehicles or about 21 percent of the market came from UK/EU sources for the seven months through July 2018. All are subject to the 5 percent tariff, and a high proportion of those also attract LCT. Many Australian export businesses can benefit from post-Brexit FTAs with the UK and EU, but achieving these agreements will be more difficult unless these taxes are eliminated.
AADA therefore continues to advocate strongly for the abolition of these imposts which will not only benefit new car buyers, but also Australia’s export industries.