Call to cut Luxury Car Tax on Australian-made vehicles

[vztrt]

http://www.carsales.com.au/news/2011...2c94335af9%2C0

Call to cut Luxury Car Tax on Australian-made vehicles

The 33 per cent slug is hurting local industry – but the peak body wants it scrapped for importers, too

The Federal Chamber of Automotive Industries has called for an urgent review of the luxury car tax, which is about to enter its fourth fiscal year at the increased rate of 33 per cent.

"It's just a bad tax and the threshold should be substantially lifted or the tax should be substantially reformed or abolished," the chief executive of the FCAI Andrew McKellar told the Carsales Network.

In July 2008 the newly elected Rudd Government increased the Luxury Car Tax from 25 per cent to 33 per cent on all vehicles above $57,009 (the threshold is now $57,466 inclusive of GST).

A few months later the Federal Government also gave fuel-efficient luxury cars a concession by making them LCT-exempt up to the value of $75,375, provided the combined-cycle fuel consumption was 7.0L/100km or less.

The overhaul delivered a huge benefit to imported vehicles, and dealt a blow to top-end locally-made vehicles, which were already struggling against the affordability of imports thanks to the strong Australian dollar.

All cars in the Holden Special Vehicles and Ford Performance Vehicles ranges – and Holden's top end Calais, SS and Caprice – are affected by the 33 per cent LCT.

FPV boss Rod Barrett says abolishing the LCT on locally made cars would slash about $3500 off the price of a $70,000 Falcon GT.

"Anything that's going to make a ticket price on a car more attractive to a purchaser would … benefit local industry," he said. "If there was a review I would support it; if [an LCT exemption] came in, of course we'd embrace it. It affects every one of [FPV's] cars … they're all above the threshold."

Holden Special Vehicles declined to comment but Holden spokeswoman Emily Perry conceded there would be "some benefit" if LCT was removed from Australian-made cars.

But Holden is not being as vocal on the LCT issue, likely because it has just received $39 million of Federal government funding to go towards the development of the next Commodore.

FPV's Rod Barrett said: "I can't comment on what governments do today, yesterday or tomorrow however I would have thought … [when LCT was introduced] it was more aimed at the import luxury market, your BMWs and Mercedes and so on, rather than Holdens and Fords."

The FPV boss said LCT is "worth reviewing now … we're going into our fourth year next year of it and we need to look at [how it's affecting] local industry".

But the FCAI believes the roll back of LCT should apply to all luxury vehicles, not only locally-made cars - a point made as recently as yesterday by David McCarthy, spokesman for Mercedes-Benz.

McKellar said if the Federal Government were to make locally-built cars exempt from LCT, it could be "exposing itself under some sort of action under the [World Trade Organisation] rules".

"[LCT] does hit some of the premium locally produced models, which affects local manufacturers, just as it affects some of the other premium brands. Our position [is] that it should be either abolished or substantially restructured and applied to all vehicles.

"We certainly would not be in a position to support a discriminatory approach to phasing it out. The incidence of the tax is growing in terms of the numbers of models it captures over time, [and it] certainly needs to be addressed.

"We'd argue the [tax] rate is too high, the threshold at which it cuts in is too low and both need reforming. And we would argue it needs to be done across the board."

[lockieoc]

about time.

[Iggypoppin']

I've always thought they should abolish the LCT. Wealthier people are already taxed more, why should they have to be taxed even more on the car they choose to drive?

[Wretched]

scrap it for all cars.

[redxm]

why is it that the govt applies taxes on top of taxes (gst + LCT + Stampduty)
how do they get away with it

[cartaa100]

im pretty peed off about how holden recieved grants from the government around 3 weeks ago for 42mil and a few before tht and i havent heard of ford aus who isnt doing aswell as holden atm receive anything!!!

[vztrt]

Originally Posted by redxm

why is it that the govt applies taxes on top of taxes (gst + LCT + Stampduty)
how do they get away with it

Ever broken down the price of Petrol?

[ILLaViTaR]

It's a necessary tax, I wish there was a way it could work with the imports. I'm naive on the subject but why would the imported cars have anymore advantage now than they without the tax??? Does it not apply to both of them equally or something? They should be making them both equally difficult to afford, not creating a monopoly.

I feel the tax is necessary as too many small business owners exploit thier tax benefits, claiming Holden Granges, GT's, XR6 turbo utes instead of a base model ute. Not to mention the bloke next door to me has a holden grange claimed on his tax, he's also decided to give his housewife the title of company directer and claimed her a 5 series BMW.
So I wonder how many people we have out there double dipping.

So instead of contributing the money meant for society, they put it into leather seats and turbo's instead. And that's ok for some reason, when really it should be tax fraud.

If the tax wasn't around we'd have more brickies smoking cigars and hauling bricks across the backseat of their monaro.

[vztrt]

Originally Posted by ILLaViTaR

It's a necessary tax, I wish there was a way it could work with the imports. I'm naive on the subject but why would the imported cars have anymore advantage now than they without the tax??? Does it not apply to both of them equally or something? They should be making them both equally difficult to afford, not creating a monopoly.

I feel the tax is necessary as too many small business owners exploit thier tax benefits, claiming Holden Granges, GT's, XR6 turbo utes instead of a base model ute. Not to mention the bloke next door to me has a holden grange claimed on his tax, he's also decided to give his housewife the title of company directer and claimed her a 5 series BMW.
So I wonder how many people we have out there double dipping.

So instead of contributing the money meant for society, they put it into leather seats and turbo's instead. And that's ok for some reason, when really it should be tax fraud.

You do realise that some cars that cost over 57k are exempt from this (has to do with their fuel economy that was lobbied by the German car companies).

[DJR-351]

Should never have been allowed in the first place, all it does is smack those in the face that have worked there assess off for years to enjoy the fruits of their labour, only to be slugged an extra 33% for their trouble....

I am not talking about your run of the mill multi-millionaire, just the average person that went without for years on the hope of a little taste when retirement comes.....

[ILLaViTaR]

Originally Posted by Iggypoppin'

I've always thought they should abolish the LCT. Wealthier people are already taxed more, why should they have to be taxed even more on the car they choose to drive?

Stops the greedy business owners from ripping off society. Without it they'd find some nonsense excuse to justify a luxury car as a work car.

[vztrt]

Originally Posted by DJR-351

Should never have been allowed in the first place, all it does is smack those in the face that have worked there assess off for years to enjoy the fruits of their labour, only to be slugged an extra 33% for their trouble....

I am not talking about your run of the mill multi-millionaire, just the average person that went without for years on the hope of a little taste when retirement comes.....

Maybe they should be realistic about the price they slug this tax. Say 100k and the tax is applied.

[ILLaViTaR]

Originally Posted by vztrt

You do realise that some cars that cost over 57k are exempt from this (has to do with their fuel economy that was lobbied by the German car companies).

Ah well all the ones who rig it are baby boomers/bogans who wouldn't buy anything else but a ford or holden anyway!!!

Half joking half serious.

[ILLaViTaR]

Originally Posted by vztrt

Maybe they should be realistic about the price they slug this tax. Say 100k and the tax is applied.

Yeah, there'd still be people who want more and more and more, there's no standard. 100k will be too low just like 50 was they both sort've still fit the upper middle class bracket. I don't think there'd be anyway to please everyone. Maybe just target the business sector?? They won't be pleased but rightfully so. If you think you need leather seats and woodgrain to flog timber around then you're what's wrong with the world. Even the privaledge to claim a base model work vehicle is still far more than the working class receives, working class can't even deduct public transport.

[DJR-351]

Originally Posted by vztrt

Maybe they should be realistic about the price they slug this tax. Say 100k and the tax is applied.

I understand where you are coming from, but what does 100k buy you these days, it would not even get you a half arsed block of land in the trashiest suburb in suburbia....

[DJR-351]

Originally Posted by ILLaViTaR

Yeah, there'd still be people who want more and more and more, there's no standard. 100k will be too low just like 50 was they both sort've still fit the upper middle class bracket. I don't think there'd be anyway to please everyone. Maybe just target the business sector?? They won't be pleased but rightfully so. If you think you need leather seats and woodgrain to flog timber around then you're what's wrong with the world. Even the privaledge to claim a base model work vehicle is still far more than the working class receives, working class can't even deduct public transport.

Yes but why does it need to be there in the first place.....??

[irish2]

Originally Posted by DJR-351

Should never have been allowed in the first place, all it does is smack those in the face that have worked there assess off for years to enjoy the fruits of their labour, only to be slugged an extra 33% for their trouble....

I am not talking about your run of the mill multi-millionaire, just the average person that went without for years on the hope of a little taste when retirement comes.....

Typical of the greens socialistic mentality.

[Ben73]

Originally Posted by ILLaViTaR

Yeah, there'd still be people who want more and more and more, there's no standard. 100k will be too low just like 50 was they both sort've still fit the upper middle class bracket. I don't think there'd be anyway to please everyone. Maybe just target the business sector?? They won't be pleased but rightfully so. If you think you need leather seats and woodgrain to flog timber around then you're what's wrong with the world. Even the privaledge to claim a base model work vehicle is still far more than the working class receives, working class can't even deduct public transport.

Why do you care what car someone wants for their business. They are still paying more for the vehicle, not like they are getting it free.
If my business required me to drive around all day, I would like a more comfortable car and not just the base model.

LCT is crap anyway. Get rid of it on all cars from everywhere.

[Bossxr8]

Won't happen, the government need every cent of tax it can get to help pay for all its screw ups.

Thats what the carbon tax is also for.

[Ben73]

Originally Posted by Bossxr8

Won't happen, the government need every cent of tax it can get to help pay for all its screw ups.

Thats what the carbon tax is also for.

And the rest.

If you figured it out. Over half of the average Australians wage would go to the government in some form of tax.

[GTPete]

Originally Posted by ILLaViTaR

Stops the greedy business owners from ripping off society. Without it they'd find some nonsense excuse to justify a luxury car as a work car.

Thats why we have so many on casual employment.
Imagine employing anyone fulltime with that attitude.

[ILLaViTaR]

Originally Posted by DJR-351

Yes but why does it need to be there in the first place.....??

Stops dodgy business owners from abusing their tax privileges. Well helps prevent it.

Take a look on the road, the cars that half ladders on top are claimed along with the ones with advertisements (stickers/decals).

Half the cars on the road with ladders on top (meaning tax deductable almost always) are XR6 turbo's whereas the other half actually use their tax dollars genuinely and buy vehicles intended for trade work.

Then you get the cars with advertisements on the rear windscreen/paint jobs/decals. This is where the real scum become apparent, almost all of them are BMW's, Audi's or spec'd out accords and Territory's.
They should be in a Yaris, it's good enough for all the government advetising.

[ILLaViTaR]

Originally Posted by GTPete

Thats why we have so many on casual employment.
Imagine employing anyone fulltime with that attitude.

We have so many people on casual employment due to the sheer greed of businesses yet again. And that attitude is a direct result of employers abusing the casual position.

I know this first hand as I've worked in 3 casual job positions, all been closer to full/part time casual, without any leave. Casual means, inconsistent shifts, no reliability, no obligation, as it says casual.

Anyone with a brain or who has actually worked in this country would know first hand that when they're hired as casual. They're given 6 shifts a week with 40hrs, expected to work, fired for not turning up. Which is not the definition of casual, moreso full time without any sick/leave benefits.

Business owners have entitlement issues, my last boss would ***** about no one rocking up to their shifts. I don't get it, I mean yeah I agreed it's dog but you owe them no loyalty it's a business, you definitely don't receive any loyalty from the employer, that's the risk he takes if he wants to get out of not being able to fire staff and pay the annual leave. That's the compromise he chose to make. That is reliability for profit.

Why would anyone want to work fulltime work without any of the full time benefits????? Doesn't make any sense to me.

So that's where my attitude came from. When I first jumped into the workforce, my first job was a casual position and red rooster. More hours than part time, no sick leave or annual. My attitude is completely valid, I've lived it mate.

Blame the businesses, moreso the coorperations as their stupid awards help promote casual abuse (small businesses are just as bad though they all do it just on a smaller scale).

I'll say it yet again, coorporations, business are the direct cause of casual work, not the employees. If they didn't abuse the casual system there'd be less people on it, all you can get nowadays is casual work nowadays, not part/full time. I don't know what you've been smoking. I'm sure everyone on casual wants fulltime, as they're basically working it without any of the benefits, not the other way round.

[DJR-351]

Originally Posted by ILLaViTaR

Stops dodgy business owners from abusing their tax privileges. Well helps prevent it.

Take a look on the road, the cars that half ladders on top are claimed along with the ones with advertisements (stickers/decals).

Half the cars on the road with ladders on top (meaning tax deductable almost always) are XR6 turbo's whereas the other half actually use their tax dollars genuinely and buy vehicles intended for trade work.

Then you get the cars with advertisements on the rear windscreen/paint jobs/decals. This is where the real scum become apparent, almost all of them are BMW's, Audi's or spec'd out accords and Territory's.
They should be in a Yaris, it's good enough for all the government advetising.

So where do i fit in the above..?? i left school at 15 and worked my *** off, paid for all my qualifications out off my own pocket, paid my taxes, got the jobs and excelled in them and now earning great coin at forty nine, WTF has what you have dribbled above got to do with me...?? i still have to disappear to sea for six months of the year, every year......or is it because of my wage i am no longer classed as “working class”....??

[flappist]

Originally Posted by ILLaViTaR

We have so many people on casual employment due to the sheer greed of businesses yet again. And that attitude is a direct result of employers abusing the casual position.

I know this first hand as I've worked in 3 casual job positions, all been closer to full/part time casual, without any leave. Casual means, inconsistent shifts, no reliability, no obligation, as it says casual.

Anyone with a brain or who has actually worked in this country would know first hand that when they're hired as casual. They're given 6 shifts a week with 40hrs, expected to work, fired for not turning up. Which is not the definition of casual, moreso full time without any sick/leave benefits.

Business owners have entitlement issues, my last boss would ***** about no one rocking up to their shifts. I don't get it, I mean yeah I agreed it's dog but you owe them no loyalty it's a business, you definitely don't receive any loyalty from the employer, that's the risk he takes if he wants to get out of not being able to fire staff and pay the annual leave. That's the compromise he chose to make. That is reliability for profit.

Why would anyone want to work fulltime work without any of the full time benefits????? Doesn't make any sense to me.

So that's where my attitude came from. When I first jumped into the workforce, my first job was a casual position and red rooster. More hours than part time, no sick leave or annual. My attitude is completely valid, I've lived it mate.

Blame the businesses, moreso the coorperations as their stupid awards help promote casual abuse (small businesses are just as bad though they all do it just on a smaller scale).

I'll say it yet again, coorporations, business are the direct cause of casual work, not the employees. If they didn't abuse the casual system there'd be less people on it, all you can get nowadays is casual work nowadays, not part/full time. I don't know what you've been smoking. I'm sure everyone on casual wants fulltime, as they're basically working it without any of the benefits, not the other way round.

Yep the reason why you do not have a permanent job is everyone else's fault.......

[ILLaViTaR]

Originally Posted by irish2

Typical of the greens socialistic mentality.

Lol and your mentality is to disregard the world and look out for number one??? That would be ok, if it wasn't at the expense of others.

The current system, is a sefish system built by selfish people who aren't content with life, people who need some form of self importance
not for themselves, they need to be perceived as important by others, to be put above others, so resources go into imagry ******** like cars and gold. Rather than towards more practical purposes.

People are born, grow up, work their life away all for a gold watch or a car, when you think about it they're just objects, especially a gold watch. Golds only worth something because someone decided it would be, not because it is. It's just a form of rock otherwise. You're taught into what you want, brainwashed.

No meaning whatsoever, unless you're religious.....

[DJR-351]

Originally Posted by ILLaViTaR

Lol and your mentality is to disregard the world and look out for number one??? That would be ok, if it wasn't at the expense of others.

The current system, is a sefish system built by selfish people who aren't content with life, people who need some form of self importance
not for themselves, they need to be perceived as important by others, to be put above others, so resources go into imagry ******** like cars and gold. Rather than towards more practical purposes.

People are born, grow up, work their life away all for a gold watch or a car, when you think about it they're just objects, especially a gold watch. Golds only worth something because someone decided it would be, not because it is. It's just a form of rock otherwise. You're taught into what you want, brainwashed.

No meaning whatsoever, unless you're religious.....

I hope to **** you are not married and are responsible for anyone other than yourself......

[GT0132]

Originally Posted by ILLaViTaR

Stops the greedy business owners from ripping off society. Without it they'd find some nonsense excuse to justify a luxury car as a work car.

Are they the same greedy business owners you talk about that give employment to around 70% of the workforce in this country? Remember mate without those with the balls to go out on their own in business, create and provide jobs to others we'd be in a pretty sorry state. Nobody was ever given a job by a poor man

[chevypower]

I say scrap luxury car tax all together. The world is a different place now, all car manufacturers have to make world class cars, why target the Germans or any others specifically? Even Hyundai is building cars (Genesis and Equus) that would give BMW and Merc a run for their money.
Also on taxes, cut 20c a litre off fuel tax, and get rid of speed cameras, and let Australia be inhabitable again.

[ILLaViTaR]

Originally Posted by DJR-351

So where do i fit in the above..?? i left school at 15 and worked my *** off, paid for all my qualifications out off my own pocket, paid my taxes, got the jobs and excelled in them and now earning great coin at forty nine, WTF has what you have dribbled above got to do with me...?? i still have to disappear to sea for six months of the year, every year......or is it because of my wage i am no longer classed as “working class”....??

I don't think you should get taxed, but business should at least as if the tax isn't there they'll go back to exploiting their perks (they still do, it's just a lot harder for them to do so with the tax).

I was replying to your question, you asked what reasons there were for the tax, I gave my answer.