Fat cats in driver’s seat Wealthy eye big tax savings on private car imports

CONTROVERSIAL changes to car import laws will deliver massive savings to the super rich — and put a dent in tax revenue thanks to a new loophole.

As the Federal Government asks Australians to tighten their belts, a Sunday Territorian investigation has found fat cats will be able to save close to $200,000 on supercars and luxury sedans. But the price of Australia’s most popular cars such as the Hyundai i30 hatchback would be a staggering $15,000 dearer (from $20,000 to $35,000) if imported privately.

The well heeled can save a whopping $172,000 if they import a new Lamborghini V12 privately under the proposed legislation due in 2018, while the savings on a top-of-therange Porsche 911 Turbo S add up to more than $102,000, and Ferrari’s latest model can be had for $56,000 less than the local RRP, according to detailed News Corp Australia analysis.

The Federal Government rakes in about $450 million in Luxury Car Tax each year and has forecast increased revenue from the tax, which is 33 per cent on every dollar above $63,184.

But experts have warned it will be “open season for rorts” because it will be impossible to calculate the true transaction price of privately imported cars and, therefore, the govern- ment won’t be able to apply accurate tax charges.

The Sunday Territorian based its calculations on untampered prices. But if unscrupulous dealers in the UK are happy to provide what the industry calls a “split invoice” (one for the car, and one for a sales broker’s “commission”) then the savings would be even greater because the 5 per cent import duty, 10 per cent GST and 33 per cent Luxury Car Tax are all based on a dealer invoice — rather than the real price paid for the car.

“Customs cannot and will not be able to determine the true transaction price of a car in another country,” said a high ranking car industry veteran, speaking on condition of anonymity. “This is another tax dodge for the super-rich.”