...Federal Treasurer Wayne Swan's Luxury Car Tax hike angers the industry.
Carmakers have spoken out strongly about the jump in Luxury Car Tax.
In his first Federal Budget, Federal Treasurer Wayne Swan has implemented a luxury tax hike that will affect cars priced at $57,000 and above.
In a budget that claims to protect lower income earners, the new car tax jumps from 25 to 33 per cent and will precipitate a price rise in around 105,000 cars yearly.
Luxury manufacturers unhappy with the government’s tax hike, argue that it is their investment in new technologies that makes cars safer and greener - and that mass market brands enjoy the benefits of such investment without having to fund research and development.
Mercedes-Benz Australia spokesman David McCarthy can’t understand why the Rudd Government has focussed on cars only. “You can go out and buy a one million dollar speedboat and a two million dollar helicopter and they are not subject to anything but GST.
“The government’s mantra is working families. Do they assume that you’re not a working family if you can afford a $57,000 car?”
McCarthy was unhappy at the speed at which the government imposed the tax and doesn’t think they have given enough thought to the thousands of jobs in importation, distribution and services, that luxury brands provide. “This is a tax on equity, a tax on safety and a tax on technology.”
BMW Group Australia managing director Guenther Seemann backed McCarthy’s stance. “Over the years, luxury brands pioneered new safety technologies such as airbags, ABS brakes, and Electronic Stability Control. Today, mass market brands and their customers reap the rewards”.
“Likewise, luxury brands are today at the forefront of engineering cleaner cars which emit less CO2 emissions.”
However, the government is unlikely to budge, considering its stated plan to reduce inflation and support the battler - struggling to cope with already crippling interest rates.
Audi managing director Joerg Hofmann also spoke out against the tax change. “The Government has a direct interest in making cars safer and cleaner, yet has effectively put this kind of technology at risk for Australian buyers, a move that seems directly at odds with its green agenda “
“For years now, our global headquarters have also invested heavily in important research and development. One key development has been the systematic reduction in fuel consumption and carbon emissions for its vehicles. This year, Audi will introduce the world’s cleanest diesel technology in its new A4 3.0 TDI quattro sedan – a new car with a 90 percent reduction in NOx emissions.”
Imported cars will make up 90 per cent of those affected but the locally produced Holden Statesman and Caprice - as well as other prestige Australian-made cars - will also be in the firing line.
How much more will you pay for luxury cars?
they're great! They make sense....but its still luxury car makers....
I suggest we leave the 20% tax in where it is now, then increase it to 33% somewhere between 70,000 and 100,000?
