There are renewed calls to scrap Luxury Car Tax as figures show shoppers of Toyota family automobiles are paying extra than most status brands. Toyota clients are paying extra Luxury Car Tax than consumers of most prestige brands, prompting renewed calls to scrap the 33 in step with cent levy on cars priced above the $ sixty-six,331 thresholds.
Luxury Car Tax has reaped the Federal Government greater than $5 billion over the past decade – inclusive of greater than $695 million in the final monetary 12 months alone.
Unique research by means of CarAdvice discovered Toyota clients paid $ ninety-nine .7 million in LCT final 12 months in comparison to $97 million for Porsche, $ eighty-four.Five million for BMW, $ eighty-one million for Jaguar/Land Rover and $45 million for Audi.
Buyers of supercars and limousines contributed a fragment of the LCT paid with the aid of Toyota clients in 2018.
Figures obtained through CarAdvice display Ferrari consumers paid greater than $30 million in LCT in 2018, even as Maserati clients contributed $18 million, beforehand of Bentley ($17 million), Lamborghini ($14 million), Aston Martin ($13 million), McLaren ($7.5 million) and Rolls-Royce ($6 million).
The most effective motorists who paid greater in Luxury Car Tax than Toyota clients closing yr have been Mercedes-Benz consumers, who crowned the list at $a hundred and seventy million.
In a bizarre twist, best 3 Toyota fashions are the problem to LCT however dozens of vehicles from prestige brands aren’t slugged way to a loophole in tax guidelines that favor certain sorts of luxury cars.
Confidential figures show 45,800 Toyota clients paid LCT on sure variants of the Kluger SUV, Prado four-wheel-pressure, and LandCruiser 2 hundred Series off-road wagon in 2018 – but best 13,000 Mercedes customers have been slugged with the extra 33 in line with cent tax.
When Luxury Car Tax turned into elevated from 25 percent to 33 in step with cent via the Rudd Labor Government in May 2008, so-called fuel-efficient vehicles (that devour 7.0L/100km or less) have been given a higher LCT-unfastened threshold of $ seventy-five,000.
The anomaly approach that a $ sixty-nine, two hundred Toyota Kluger, a $ seventy-three, six hundred Toyota Prado, and a $ seventy-eight,000 LandCruiser entice LCT – however dozens of Audis, BMWs, and Mercedes-Benzes and other luxury motors are not hit with the greater tax (see list beneath).
In the Audi variety, 38 vehicles from its ninety-vehicle line-up are exempt from LCT whilst 29 of 89 BMW fashions keep away from the extra 33 in step with cent tax. And 25 of Mercedes’ 103 passenger vehicles are also not a situation to LCT.
Another anomaly: top-cease utes inclusive of the $ seventy-five,000 Ford Ranger Raptor and $ seventy-nine,000 Mercedes X-Class X350d Power edition do not entice LCT due to the fact industrial motors are exempt.
“The majority of people who pay Luxury Car Tax are common Australians who purchase vehicles properly underneath $one hundred,000 to move their families,” says Tony Weber, the CEO of the Federal Chamber of Automotive Industries. “Luxury Car Tax has come to be redundant within the Australian automobile marketplace and the time has come to stop the charade that that is a justifiable, sensible or even an essential tax.”
A statement from market leader Toyota said: “We consider [Luxury Car Tax] is an unfair impost on Australians and the automotive enterprise, as it applies best to automobiles and no longer to different gadgets. Motorists already notably contribute to authorities sales while shopping a car through GST, stamp obligation and registration costs.”
Industry insiders advised CarAdvice each aspect of politics are reluctant to scrap Luxury Car Tax amid fears of a voter backlash.