Page 21 - Beep Beep JUNE 2025

FOR IMMEDIATE RELEASE 6 May 2025
MTAQ Welcomes Government
Consideration to Abolish
Luxury Car Tax
The Motor Trades Association of Queensland (MTA
Queensland) strongly supports the Australian Government's
consideration of abolishing the $5.2 billion luxury car tax (LCT)
as part of negotiations for a free trade agreement with the
European Union.
The proposed removal of the 33% tax on vehicles above the
thresholds of $91,387 for fuel-efficient vehicles and $80,567 for
other vehicles would benefit Australian consumers and
automotive businesses significantly.
"The luxury car tax has long been outdated and inefficient,
unfairly impacting Australian motorists and businesses," said
Rod Camm, CEO of MTA Queensland. "Its removal would help
reduce vehicle costs for consumers whilst supporting
thousands of automotive businesses across the country during
a critical period of industry transformation.”
MTA Queensland believes abolishing the LCT would deliver
multiple benefits to the Australian automotive sector, including:
• Increased affordability of newer, safer, and more
environmentally friendly vehicles
• Enhanced competitiveness for Australian automotive
retailers
• Expanded consumer choice in the Australian market
• Support for employment across sales, service,
repair, and parts sectors
"The potential removal of this tax represents a
significant opportunity to modernise Australia’s
automotive taxation framework at a time when our
industry is undergoing unprecedented technological
and structural change," Mr Camm said.
MTA Queensland looks forward to continued
collaboration with the government as the industry
navigates this transition period, particularly regarding
electric vehicle adoption and supporting infrastructure
development.
"We stand ready to work constructively with the
Albanese Government to ensure that reforms like the
abolition of the luxury car tax deliver maximum benefit
to Australian consumers and businesses whilst
supporting the industry's sustainable future," added
Mr Camm.
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