The AADA continues to call for the abolition of the Luxury Car Tax (LCT) which discourages the uptake of the world’s safest, cleanest and most efficient vehicles. Several independent reviews and inquiries have recommended its abolition and Dealers, consumer groups, manufacturers and even Australia’s trading partners are united in their opposition to the LCT. If the LCT is to be retained, it should at a minimum be reformed by raising the threshold to target truly luxury vehicles; exempting low emissions vehicles; and excluding accessories from the calculation of whether a vehicle hits the threshold for paying the LCT.
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