Page 20 - MTAA 2019 Federal Election Requirements FINAL MST_opt

ABOLISH LUXURY CAR TAX
The luxury car tax (LCT) was introduced in 2000 to encourage buyers to
purchase locally manufactured
vehicles instead of imported prestige “THE LUXURY CAR TAX
vehicles. The end of passenger vehicle IS REDUNDANT AND
manufacturing in Australia now makes DISCRIMINATORY
this tax redundant. TOWARDS MOTOR
VEHICLE DEALERS AND
▪ LCT is charged at 33 per cent CONSUMERS”
on the proportion of the
vehicle priced over $66,331 (or
$75,526 for vehicles categorised as ‘fuel efficient’). These
thresholds are absurdly low and affect many working vehicles. This
includes four-wheel-drive vehicles that meet the needs of rural
consumers, such as the Mitsubishi Pajero, Toyota Land Cruiser and
Nissan Patrol. They are all priced above the LCT threshold.

▪ These vehicles are essential for performing transport tasks on
roads and in conditions that are often unsuitable for regular
vehicles. This consequently penalise consumers in rural and
regional communities, who are often the purchasers of such
vehicles for work purposes.

▪ The automotive industry strongly believes that the LCT is unfair
and discriminatory towards motor vehicle dealers and consumers.
It acts to artificially inflate the price of vehicles that offer the latest
in safety and emission technologies.

▪ There is gross inequity given traditional luxury items such as yachts
planes and high end jewellery which do not attract the same type
of additional luxury tax.

▪ The automotive industry recommends that the Federal
Government act to abolish the luxury car tax. While MTAA
recognises that the removal of tens of billions of dollars of revenue
is a concern for government, continuing a discriminatory tax is not
acceptable.
▪ If a future government is not prepared to completely abolish the
luxury car tax then, as a last resort, a future government should
legislate a four ‘R’ Strategy;

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