Luxury car tax set to rise
May 11, 2008 by Alborz Fallah
Vehicles that cost $57,000 or above (classified as luxury vehicles) are set to cost even more with the announcement of the new federal budget this Tuesday night.
Around 105,000 new ‘luxury’ vehicles are sold each year and buyers will now have to pay an additional 8 per cent tax – 33 per cent, up from 25 percent.
Although the government aims to target luxury imported vehicles, the tax rise will also affect locally produced cars such as the Ford Territory Ghia and majority of HSV and FPV models.
“It’s abundantly clear there are some people who are receiving government benefits who are on very, very high incomes, who don’t need them,” Treasurer Wayne Swan said.
Vehicles which cost $100,000 or more are currently taxed nearly $8000, under the new upmarket car tax, they will be taxed almost $10,500.
“It’s only fair that those at the top end pay a little more for their luxury vehicles and help us put an end to the high inflation and high interest rates of the Costello-Turnbull era.” Mr Swan said.
Do you think increasing luxury car tax is a suitable way to fight inflation?
Print it: 
okay, in Au, we pay shit loads of money for cars compared with US and EU, this is just one example that Australia is not really a developed country coz most people live in a sub-standard condition considering how hard we work! We have an developed goverment, not a developed middle-class!
compared with US or UK, we in Australia except for mining industry are under paid although we have matching productivity and similar daily working hours. However, the retail prices of cars, IT hardwares, electronics, foods and everything else are very much higher than other countries. We used to enjoy relatively low house price which to some degree bring it a bit fairer but now, it makes it worse. Watch out, OZ, if anyone says we middle class have enjoyed the economic boom, I say, please, I am far from happy.
Goverments dont serve the people anymore,they now serve multi nationl corparations and the international banks.It dont matter who you vote for thay all get told what to do, believe it.Our pay packs are the crops and thay are the farmers,and the system is the harvesting machine
It doesn’t seem the way to fight inflation if it IS inflation. One motor trade rep said that it creates price creep that will encourage higher prices on the lower end vehicles in a manufacturer’s range.
Hit a nerve eh Naughty? I’ll stop the ‘personal’ comments when you leave your black rubber gimp suit lying stained in your Liberal closet. The majority concur with me and disagree with you. You are painted into a fecal corner with your hollow rhetoric…but let’s not get personal now.
Rudd had to match Howard bribe for bribe just so he could convince neo-con ar*ewipes like you that he had a better plan. Truth of the matter is Howard had NO PLAN so bought out the tide Union bashing BS. Your just the gimp Australia had to have. But lets not get personal.
I’m sure prestige consumers can weather this.
price creep sounds feasible.
Shadow minister and former NSW State Liberal leader Peter Denman resigned today unable to reconcile his opposition to the NSW power sell off with the pro sell off stance of the rest of the party.
Peter Denman is obviously a man of principle and u have got to respect that!
yes agree Alec and they play one country off against the other.
Am I bothered? Check,face,car,wallet…..AM I BOTHERED!
The Luxury Car Tax should be abolished or at the very least, it’s threshold raised to something like $90,000.
I hope that the Senate actually does it’s job for a change and blocks this increase. But I guess it’s full of ‘yes men’ who will just rubber stamp it?
I’m sure many people are sorry by now that they elected this bunch of imbeciles.
marvak,
i think raising the threshold would be a good idea especially with the over 57k category increasing.
but the thing is i guess they would raise it by like 20% if it were a 90K threshold to make of for the fewer quantity sold in that bracket.
they have to get their dollars some where, and if they cant find it here, then they will tax us harder on something else, and then we will whinge about that
“It’s abundantly clear there are some people who are receiving government benefits who are on very, very high incomes, who don’t need them,” Treasurer Wayne Swan said.
What does that mean??? Why not reduce/remove their Government benefits or tax them at source instead of screwing the honest hard working middleclass tax payer who props up the lazy Bogans that cannot be bothered to get off their arses iand work.
Like the UK your Government taxes ALL the things that make you happy. So therefore don’t enjoy life, be bloody miserable and don’t pay tax. Oh doesn’t life suck.
Most politician either side don’t really give a toot about you lot, just their own big ego’s.
1/Benjie Says: May 12th, 2008 at 12:15 pm “I heart Unions”
2/PoisonEvil Says: May 12th, 2008 at 6:02 pm “You are painted into a fecal corner”
NM response……….birds of a feather flock together as you two share a braincell. You better calm down and get an un-grip as you holding too hard into the closet. I suggest you share it. And you simpleton BENJI…..nobody said he is unmarried; do you support someone having a mouth like that as very funny and maybe you feed it! WOW, the closet is full and all similar mindset. Your diatribe warblings on what you perceive happened before Rudd got in is too funny to respond to.
I will leave it to you simple braincell sharers to make a fool of yourself as SFA respond in your light closet dwellers! HA HA HA HA
If you wanna get the words it in 3 seconds and takes 5minutes to type it – put brain in gear before you move as very funny you simpletons!
Last post accidentally put up before checked……Put brain in gear before you move (oops…TYPE) as very convulted and weird as!
Benji; Iam glad you heart unions hey. And Evil; that fecal corner is a humdinger. Whatever the F*** you mean? Fools and there hands on it!
How can you say a luxury vehicle is 57K. For 57K you can’t even buy a decent Audi, or a Calais or any HSV. Are they suppose to be luxury vehicles. If you answered yes than you are lost.
I would say that 110K+ is a luxury vehicle, but you say that 57K vehicle with more airbags, better handling and better chance of surviving an accident makes it a luxury vehicle than I say BS.
If everyone of these hard working family people are happy to drive a Kia Cerato, or a Hyundai or a bloody basic Holden or Ford than I say good on them, but you should not be jealous if people that are educated, work hard and bust their balls working hard drive nicer cars.
That also does not make me a cash cow either so LCT is nothing else but an envy tax like some in the media already called it.
LCT – tax to take money of people that worked hard their entire life, tax to rip-people off that prefer finer things in life.
LCT – It’s just an iteration of the incremental salary taxation levels. Earn more and you get dicked more, it’s not like people earning more don’t already pay their fair share of tax.
Why the hell do we have all these massive surpluses. Well , we do have them because we are so over-taxed that it makes me sick, and yeah, we still have shyte goat track roads, shyte hospitals, no bloody water, and we still have majority of population saying that politicians(both Lab/Lib) are doing good jobs.
You all need to get your heads checked, you over-mortgaged, over-taxed robots.
Audi A4 4cyl or a BMW 320i, yeah, such a luxury vehicle. School kids in USA and EU drive them, but apparently only “rich” people can afford them in Oz and they should be bent over a bit more by the ATO.
Yeah, we should all buy junk Holden Commodore and Ford Falcon and kill ourselves when it rains, or be happy with crap interior, or be happy with woeful paint finish that needs cut and polishing when it’s 7-days old, or we have to be happy with excessive oil consumption etc.
Poofter Government…. Because they aren’t getting enough tax out of us already.
I love these envious/dumb people (Toby) that think since I prefer to buy Euro or a better Jap car that I should be ripped off – comments like “well, most people cannot afford a 60K+ car, so if you can then pay a bit extra”.
60K in Oz gets you a bottom of the range Euro, or maybe an FPV or something like that.
Toby, do you know what kind of car you can buy in USA or Canada or EU for 60K+.
AUS$60K in USA will get you a brand new BMW M3.
We are paying AUS$170K for the exactly the same M3. Blame the government tax system for not being able to afford anything, don’t blame the person that can afford a poor pack 60K car, and don’t be happy that they are just slammed with another tax.
So, in Oz for 60K you cannot buy anything decent, and then people like our smart boy Toby reckon that that is fine. C’mon people, get some knowledge before you open your mouth, or start typing.
Oz is way too expensive for car enthusiasts in comparison to our earnings.
We have very old cars on our roads, and car enthusiasts wanting to buy a better car should not be slammed by other people because they can afford it.
You should slam the government for over-taxing you and stopping you from affording a very good car for 60K, and taxing everything so highly that for 35K we can only buy junk.
Uhh was that even worth typing, FingeredinmyMaximus?
It is what happened before Rudd came in; what rock have you been hiding under? You must have the rosiest of tinted glasses if you think we would be better off under Howard.
Lets agree to disagree and leave it at that. Iam not right wing either and thought the simple approach of listening to people and having cabinet meetings in towns was great. Til I saw footage of BS PR of Cabinet Meetings and also 2020 Summit and what was spoken and back slapping shindigs where just that. Plenty of emotion to do it right; but no follow through as bureaucrats still at steering wheel and not Rudd fully. I saw nobody doing the extreme hard yards like in football as all “OUTSIDE BACKS” shyte scared to do the hard yards right up middle. And if there is no aggressive running; then game over!
So what is your defence of interest rates……….as you sound just like people did back when Keating / Hawke were in and interest rates rose and rose ans same PR used with Keating saying how bad the books were left. Obviously you are significantly clever then the rest of the world (actually stupid simple as!) authorities downgraded our credit rating…………..this is “NOT” my opinion but a measure of performance in the worlds eyes on how Australia being governed and impact in our footprint on world stage. ALP during Hawke / Keating Downgraded twice: AA (insulting heaps) V’s COALITION during Howard Upgraded twice: AAA.
So I suggest smelling salts, gather yourself and get a grip of reality as your causing numbness elsewhere as gripping too tight. Its little geeks like you who think they know all………….feed BS and run with BS and blah blah blah BS!
Looks real glossy and bright for Australians….Treasurer says he has made more than 600 cuts and expects to be left with a surplus of around $17 billion as an inflation buffer. So we rob and rob willy nilly. Then he also hits car buyers which will have a flow on effect (increase prices) below the $57,000 Luxury Car Threshold!
But also in ALP style offering an unrealistic $31 billion in tax cuts from July might break through the buffer and renew pressure on interest rates. And to one hand remove heaps of $$$$ and penalise people and then at same time offer massive tax cuts……..well nobody can accept that just as the equally stupid Keating had “same” scenario on plate when he said massive tax cuts and its LAW and done deal….He even said “L…..A…..W taxcuts will be done (he spelt out that word LAW) as set in stone”
And then place into jeopardy any former gain by spending cutbacks to try to combat inflation. Rudd hasnt even touched his wishlist promises yet…..laptop for every kid in school with his so called “Education Revolution”! Clearly the cycle will be interest rate rises more readily. Already up near 10% we will go back into ALP whirlwind days of high interest rates!
God love em……………a footy team of all outside backs!
Access to a laptop for every student – what Ruddy means by that is: Force all the private schools to share what they have with the public schools, computers more often than not, paid for by the parents, you know the “WORKING FAMILIES”. The “WORKING FAMILIES” where both parents go out to work to give their kids the best that they can, and that isn’t the public school system anymore (thanks Mike Rann – Labor premier of SA).
Bret wtf are you saying? Under Howard Private schools got around 70% of government funding on top of fees! State government? Who allocates the money to them brainiac.
P-E,
Nice try on the Labor spin. Neatly avoids that majority of education funding is from the states, and about 90% of that goes to public schools.
The fact is that by sending my kids to private schools I save the govt more than $4500/child per year.
Kids in public schools recieve about $10,000 a year in funding, whilst kids in private schools recieve only about $5500. That shortfall is paid for by the parents!
Bret,
ive finally found something i dont agree with you on.
90% of funding doesnt go to public schools.
the private schools get more funding than public.
the extra you pay to send your kids there goes towards fancy tennis courts and grounds etc
Andrew M,
Nope sorry but you are totally wrong! Public schools get almost double the funding ($10,000/$5,500 are not made up numbers, they are real). The spin that Labor und teachers unions drown the media with is purley Federal funding, which runs at a rate of about 1 to 6 public-private.
What they conveniently forget is that most education funding comes from the State government level and runs at a rate of 8+ to 1 public-private.
BTW an on topic comment: I don’t see any luxury cars in the school carpark, because the “Working Families” can’t affoed them, and did you know we have more trouble getting school canteen volunteers than public schools because all the mums/dads work full time.
OK Bret,
ill look into it a bit further when i get a second.
im happy to be corrected though.
where on this wide world are such government figures available?
Its interesting to hear Naughtius talking about the budget. You claim that the govt 30 billion tax cuts will have an inflationary effect, however the Howard Costello govt was going to bring in much larger tax cuts. Its interesting that you think Labor will do badly for the economy when the Shadow treasurer has already stated that the inflation problem (May 05 in the Australian ) is overrated and wont be going up again (of course he has back flipped like a gymnast now). Pretty much all economists say that is a joke. The current budget has trimmed $7billion worth of fat off the previous govt and you still try to paint Labor as economically irresponsible. When will you realise that it was the previous govts irresponsible spending that would add pressure to inflation, not the current spending cuts.
Andrew M,
It’s just something I know, I’m not sure on a ‘net reference, perhaps do a search on “independant schools association”.
OK I looked for one: AiSV media release from Feb.
The latest Productivity Commission figures show that in 2005-06, government schools in Victoria received combined Australian and Victorian government funding of $10,352 per student, while non-government schools received just $5,613 per student. Government schools received $5.569 billion compared with $1.638 billion for non-government schools.
Bravo to the government on a fair and equitable budget, even though I lose out on a few things like baby bonus etc… it’s the right thing to do.
Let’s face it, the extra tax on luxury cars is nothing compared to the gouging that the car manufacturers perform by way of ridiculously priced options.
BTW, no one has mentioned the budget savings from cutting the publicly funded propaganda campaign that were the weapon of choice of the previous regime. Surely, there’s a billion dollars a year saved there!
Foggy, sorry mate but Rudd will (and already has) actually increase the propaganda spending.
The Prime Ministers department will gain many more public servants at a five yr cost of almost $30 million, just to advise little Ruddles how to “spin” us even more.
Most of the “savings” come from cutting programs that delivered benefits to real people, and at work we started feeling the cuts weeks ago.
Bret, so its not a 90/10 split like you originally claimed?
the figure showing 5.5Bill V 1.6Bill doesnt paint a clear picture.
for that figure to mean something, it would need to be accompanied by how many public V private schools there are and display a figure per school
Andrew, your’e not getting this.
There are two sources of government funding to schools:
1. Federal government: A relatively small amout of the total funding is federally sourced, of that about $6 goes to private for every $1 that goes to public. That figure increased from about $4 over the last eleven years (to address the disparity of funding by the Labor states).
2. State government funding: This is by far the bigger budget (and it varies by state). Something like 80+ % of this funding goes to the public system.
As you correctly stated, the overall funding numbers don’t really mean much, what is the only true indicator is the funding per student. That figure is $10,352 public to $5,613 private, total govt funding (ie. every private school student save the govt nearly $5000).
I think you misread my original statement, regarding the 90 (or 80+) % funding. I said it is “state” as opposed to “federal” or “total” funding.
BTW the Federal funding is dished out according to Beaurau of statistics data on socio-economic status: the poor areas, with lower income families get a higher percentage of it.
Quote (Bret):
“Foggy, sorry mate but Rudd will (and already has) actually increase the propaganda spending.
The Prime Ministers department will gain many more public servants at a five yr cost of almost $30 million, just to advise little Ruddles how to “spin” us even more.
Most of the “savings” come from cutting programs that delivered benefits to real people, and at work we started feeling the cuts weeks ago.”
Sorry Bret, but $30M over 5 years pales into insignificance next to the $200M that Howard spent in the last year trying to ram WorkChoices and Hatred down our throats.
Can you also please enlighten us which programs have been cut that deliver benefits to real people that actually need the assistance?
I have lost some of the “handouts” because of the new means testing, but I’m not bitter, it’s not going to impact my livelihood or lifestyle… and it’s a small price to pay to see essential services being improved.
Foggy,
How about stripping resource from the front line customs to fund Rudd’s US style “security advisor” department? You need to look deeper than the tabloid media.
And guess what, as a Union Delegate (of Aus largest auto union), what is goin on behiond the scenes is scary.
Some utes are priced over the $57k threshold.
eg. TRD Hilux 4×4 with double cabin.
I’m sure there are many utes including Ford and Holden that exceed $57k.
Does Rudd want us to drive a Mahinda ute with inferior crash protection and inferior quality?
The $57k+ utes are packed with safety features and provides towing performance which many trades people require.
This tax is hurting working class people.
I’m sure there are many family cars that will exceed $57k as they are packed with ABS, air bags, ESP, EBD etc etc.
Families require the extra space.
This tax is just squeezing the middle class even further.
This is probably the start of further tax rises.
Next year, Rudd better not increase income tax.
If he does, I will have difficulties paying off my house.
As a lower working class person, I don’t believe in penalising rich people either. Rich people employ people which helps keeps food on the table for families. Otherwise, they pack up and go overseas and take the jobs with them.
What benefit did 2020 vision give?
Republic debate?
Is rudd aiming to reward lazy people who don’t want to work?
FBT is another load of rubbish.
This p***es me off. So, because i work hard to make something of my life and can finally afford a nice car – im penalised?
I should have just gotten a job flipping burgers. Less tax, better benefits.
Lets keep encouraging underachievers.
Woohoo………..it didn’t get passed in Parliament so didn’t go through. Nice win for us Luxury car buyers,nice to have a win for once in Government and tax!
I hate this LCT. It is so unfair.
I worked my ass of in Uni and spent a shitload of money so that when I be
I hate this LCT. What it does is reward underachievement.
I’m a surgeon earning a reasonable amount. I worked my ass off in uni so that I could earn the reasonably and buy a nice house, drive a nice car etc. Now the Rudd government is telling me “Too bad for doing a good job and being a good community member. We’re going to punish you for the effort you put into your earnings and make you drive a under 57000 dollar car. To hell with it. If I wanted to buy a normal car I would have left school and flipped burger as mcdonalds. I went to uni and got a good job because I wanted to enjoy the luxuries in life. Hell I want a BMW or a Mercedes. I don’t want to have to pay an extra 10 grand for the crime of buying a nice car!
This Labour system will lead to a generation full of dole bludgers and lazy bottoms. For our society to move forward, you have to reward the people who do the most work (rich people). This is just punishing them. And where does the extra money raised by the 33% LCT go to? Giving the dole bludgers’ welfare!