The Sunday Mail (Queensland)
Luxury tax hit for car buyers
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.