The Sunday Mail (Queensland)

Lux­ury tax hit for car buy­ers

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FAM­ILY-CAR buy­ers are now pay­ing as much lux­ury car tax as pur­chasers of pres­tige brands. The rev­e­la­tion comes as the in­dus­try re­news calls for the 33 per cent levy to be dropped once Aus­tralian car man­u­fac­tur­ing shuts down by the end of 2017.

A Sun­day Mail in­ves­ti­ga­tion found al­most 200 Euro­pean cars are now ex­empt from the tax – 33 per cent on ev­ery dol­lar above $63,184, which in­cludes the 10 per cent GST – while ve­hi­cles such as Toy­ota Tarago, Toy­ota LandCruise­r and Nissan Pa­trol are slugged with the ex­tra charge.

The tax on a LandCruise­r is up to $16,805 be­fore op­tions.

Fig­ures show Toy­ota Aus­tralia cus­tomers pay an es­ti­mated $85 mil­lion a year in Lux­ury Car Tax – com­pared with be­tween $80 mil­lion and $90 mil­lion each from Audi, BMW and Mercedes-Benz – even though only 12 mod­els in the Toy­ota range of al­most 100 vari­ants are taxed.

By com­par­i­son, two out of ev­ery three mod­els from Audi, BMW and Mercedes-Benz – more than 60 cars from each brand – are sub­ject to the tax.

Euro­pean car mak­ers are lob­by­ing their gov­ern­ments to block Aus­tralia’s Free Trade Agree­ment with the Euro­pean Union un­less the lux­ury tax is abol­ished.

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