Common sense is yet to prevail over the current Luxury Car Tax debacle, with the Senate rejecting an Opposition bid to raise the luxury price threshold to $90,000.
– George Skentzos
The proposal was an acceptable compromise, maintaining the current LCT rate of 25 percent for vehicles over the existing $57,180 threshold, and applying the proposed 33 percent LCT to vehicles priced $90,000 and over.
The Coalition believes such a scheme would help to ensure buyers of 4x4s and people movers wouldn’t be slugged with the new 33 percent tax rate.
It is painful as a motoring enthusiast appalled by the current pricing of new vehicles in Australia to read completely misinformed comments made by our members of Parliament in arguing the case for the LCT rise.
Deputy leader of the Government in the Senate, Stephen Conroy, attacked the Opposition’s proposal with the following remark.
“By lifting the tax threshold, they are giving a tax break to Porsche drivers.”
Meanwhile the most affordable Porsche in Australia – the entry-level Cayenne 4×4, begins at $94,700 – above even the proposed threshold increase.
Its unfounded rhetoric such as this which masks the true climate of the Australian car market, with Mum and Dad car buyers being slugged with a tax hike by outdated legislation which has no real perception of what a luxury car really is in today’s society.