There are renewed calls to scrap Luxury Car Tax as figures show that Toyota family automobiles are paying extra than most status brands. Toyota clients pay additional Luxury Car Tax than consumers of most prestige brands, prompting renewed calls to scrap the 33 in step with a 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, including greater than $695 million in the final monetary 12 months alone. Unique research using CarAdvice discovered Toyota clients paid $ ninety-nine .7 million in LCT’s last 12 months compared 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 Toyota clients’ aid 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 more in Luxury Car Tax than Toyota clients in the closing yr were Mercedes-Benz consumers crowned the list at $ hundred and seventy million. In a bizarre twist, the best 3 Toyota fashions are the problem to LCT; however, dozens of vehicles from prestige brands aren’t slugged to a loophole in tax guidelines that favor certain sorts of luxury cars.
Confidential figures show 45,800 Toyota clients paid LCT on certain variants of the Kluger SUV, Prado four-wheel-pressure, and LandCruiser 2 hundred Series off-road wagon in 2018 – but the best 13,000 Mercedes customers have been slugged with the extra 33 in line with cent tax.
When Luxury Car Tax turned elevated from 25 percent to 33 in step cent via the Rudd Labor Government in May 2008, so-called fuel-efficient vehicles (that devour 7.0L/100km or less) were 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, 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, while 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 because 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 the Federal Chamber of Automotive Industries’ CEO Tony Weber. “Luxury Car Tax has come to be redundant within the Australian automobile marketplace, and the time has come to a stop the charade that that is a justifiable, sensible or even an essential tax.”
Market leader Toyota said: “We consider [Luxury Car Tax] an unfair impost on Australians and the automotive enterprise, as it applies best to automobiles and no longer to different gadgets. Motorists notably contribute to authorities’ sales while shopping for a car through GST, stamp obligation, and registration costs.” Industry insiders advised CarAdvice that each aspect of politics is reluctant to scrap Luxury Car Tax amid fears of a voter backlash.
