ON THE THRESH­OLD OF LUX­URY

Herald Sun - Motoring - - Carsguide Confidential - Twit­ter: @RTMBlack­burn

LUX­URY car buy­ers won a small vic­tory last week as the gov­ern­ment lifted the lux­ury car tax thresh­old to $63,184 and a num­ber of brands de­cided to pass on the sav­ings im­me­di­ately.

The sav­ings were mod­est — “up to $390” ac­cord­ing to the car mak­ers, barely enough to cover the cost of a pair of floor mats. And that’s on a car cost­ing about $400,000.

Un­for­tu­nately the gov­ern­ment’s gen­eros­ity didn’t ex­tend to more fu­el­ef­fi­cient lux­ury cars.

Some years af­ter the LCT was in­tro­duced in 2000, the La­bor gov­ern­ment in­tro­duced a higher thresh­old of $75,000 for cars that used less than 7 litres per 100km. If your cho­sen car lim­boed un­der that fig­ure on the of­fi­cial fuel cy­cle, it could mean sav­ings of more than $3000 on a $75,000 car.

But the in­cen­tive to buy green has been shrink­ing since then.

For the fourth year in a row, there has been no in­crease in the green car thresh­old. In fact, since it was in­tro­duced it has in­creased by just $375, or 0.005 per cent.

At the same time, the thresh­old for gas guz­zlers has in­creased by more than $6000 (or more than 10 per cent).

That’s the kind of logic that brought you a 33 per cent “lux­ury tax” that ap­plied to cars, but not yachts, di­a­monds and pri­vate jets.

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