Car Stamp Duty To Rise In Queensland !!!

[csv8]

Queensland car buyers will fund a $528 million increase in mental health spending through increased stamp duty on vehicle sales, with V8s costing most and fuel-efficient hybrids least.

Under the measure, to be included in next week's budget, the motor duty levy will be raised from two per cent of the purchase price to three per cent for four-cylinder vehicles, 3.5 per cent for six-cylinder vehicles and four per-cent for V8s.

Premier Peter Beattie said the extra tax meant buyers would pay an extra $220 in duty on a $22,000 four-cylinder Toyota Corolla while duty on a $38,000 Holden Commodore would increase from $760 for a six to $1,330 for a V8.

But the duty on hybrid cars would remain at two per cent to encourage more motorists to take up the environmentally friendly option.

He said the tax increase was necessary to pay for additional funding for mental health services for the state which has one of the highest suicide rates in the country.

"Queensland has underfunded mental health for too long, we can't continue to have a higher percentage - 14 per cent higher when it comes to suicide - than the national average," Mr Beattie said.

However, he said even with the additional funds the state's mental health spending would only be 85 per cent of the national average.

"We only moved it five per cent, but if we hadn't done this it would have gone backwards," he said.

Treasurer Anna Bligh said the tax increase was expected to raise an additional $200 million a year which would cover the increase in mental health spending of $528 million over four years.

However, she said the stamp duty increase would be the only additional tax included in next Tuesday's budget.

She also indicated the budget would remain in surplus.

"This does mean a small revenue increase but frankly it's modest, its prudent and it means we can see increased services that Queensland deserves without the budget going into deficit," she said.

"If we want national levels of service delivery we've got to bite the bullet on some areas of revenue without losing our competitive tax status."

Ms Bligh said Queensland would remain the lowest taxing state in Australia and indicated the budget would offer relief for taxpayers in other areas.

"There will be other other areas of the budget where we will be looking at some moderation of tax," she said.

Here we go again, punishing us V8 drivers for our love of V8's.