From 1 July, the threshold for imposition of Australia’s ridiculous Luxury Car Tax (LCT) rose to $61,884 ($1,568 up on the previous threshold).
Toyota was quick off the mark, announcing 19 LandCruiser 200, Prado, Kluger and Tarago models which now slip under the threshold will have their prices reduced by the full amount - which is up to $470.
With our combination of Federal and State taxes on new vehicles, taxes on fuel, annual registrations and toll roads, Australian motorists pay more than any other drivers on the planet. A trip from Melbourne’s outer suburbs to the city, including parking fees in the CBD requires motorists to contribute to the purses of all three levels of Government (Federal, State and Local).
And with stealth speed cameras in many states, which don’t contribute to road safety, we’re slugged even more – no-one provides more to Government coffers than motorists/new car buyers.
It’s an unfair burden which is not fully passed on to fund new/improved roads and, pleasingly, in announcing these price cuts Toyota has taken the opportunity to deservingly belt Federal politicians once again, calling the LCT “discriminatory” and “inefficient”.
Toyota points out that owners of luxury yachts and even super yachts pay no LCT on their purchases. There is no LCT on private jets…only long-suffering new car buyers are slugged by this unfair tax.
“Australian motorists are already heavily taxed with GST, stamp duty and registration fees when buying a new car, as well as road tolls and a hefty tax on fuel,” explained Toyota Australia boss Tony Cramb. “The punitive tax rate was originally 25 per-cent on the value of the vehicle above the threshold, but was increased to 33 per-cent in 2008. New vehicle buyers should not be singled-out to pay the additional burden of a so-called luxury tax – especially one that is so inefficient and poorly designed.”
Abolition of the LCT is consistent with the recommendations of the Henry tax review.
