Comments on: ATO to close Luxury Car Tax loophole

By: IRONGAV

IRONGAV — Tue, 11 May 2010 01:26:00 +0000

As a car enthusiast, who would love to buy one of these percieved “luxury” cars such as a Porsche 911, I’ve been doing some research into the justification of the LCT given by the government when it put forward the bill to raise the tax from 25% to 33%. Thus far I can’t see any justification that is backed by solid facts. Claims that it is hitting the fat cats who want their ferrari’s and rolls royces is completely false when 80% of the cars purchased that are effected by the LCT are large people movers bought by families. Claims that it is for the benefit of the environment etc is completely blown out of the water by the fact that million dollar cruisers use up to 300l of fuel per hr. and are not hit with luxury tax. On top of that, we’re the only country that has a Luxury Car Tax… Basically for me, it comes down to the fact that I’d love to buy a Porsche (which on my salary would mean sacrificing over 50% on repayments) but rather that $250,000, I’d like to pay $190,000, or in other words, the great car without the LCT tax rip off. Does anyone know how to voice an argument that may be heard to the government on this matter? How do we call them out on their obvious political posturing to hit the rich bastards and give to the little battlers?

By: jack

jack — Sun, 29 Nov 2009 23:06:44 +0000

Completely agree. If the money taken in tax was returned to the pockets of the people, then we would watch the economy SOAR.

For example, in the late 1950′s Japan reduced its tax level to around 11%. They massively simplified and reduced their tax system, too. In the next decade, their economy absolutley took off like a rocket. Most ironically, the ACTUAL GOVERNMENT TAX INTAKE INCREASED TENFOLD BY 1970! Just through growth in the economy.

(It can be argued that Japan was fast tracked on growth at the whim of US administrators as a perceived buffer to the rising communism throughout SE Asia during this time; whatever, it worked.)

Currently, nowhere in the Western world are any government game to leave the ‘hands off’, and let the people create the prosperity that ALWAYS occurs when taxes and regulation and size of government are small.

We could scale back these impositions. Simple. Cheap.

Or we could continue on our current path of massive debt creation (government bonds) to goose the economy “back” via ‘nation building projects’ thus guaranteeing future tax hikes to pay it off, which is another “brake” on the economy.

LCT at 57K, when the average wage per annum is similar to this – pfff! Where’s the Tea Party on this one?

By: jack

jack — Sun, 29 Nov 2009 22:46:07 +0000

“Claimable costs per km should be based on engine capacity and that’s it. ”

I’d quantify that bit, for some cars with bigger engines and more torque will consume LESS fuel on an everday driving cycle than cars with smaller, more stressed engines. Particularly as most vehicles continue to gain weight.

With that line of thought we will all be driving 1500kg cars with 1.2L twin turbo mixmasters under the bonnet, consuming 10.5L/100km in the real world!

By: Jester

Jester — Sun, 29 Nov 2009 09:18:41 +0000

C’mon, don’t be crazy MJ – it has nothing to do with oil or pollution, and trust me, a 20K car may create more co2 than a 100K car – still ATO only bends over those ones that worked hard so they can afford a decent car.
Don’t get me even started on boats, and things like that – yet again is the motorists that finance this country.

By: The Realist

The Realist — Sat, 28 Nov 2009 07:38:51 +0000

Typical government response – let’s not efficiently use the vast sums of money we have, let’s just find another avenue to raise more tax monies.

Strange how the LCT limit has not kept pace with inflation…

By: MJ

MJ — Sat, 28 Nov 2009 05:03:41 +0000

A diamond ring DOES NOT use imported oil, cause pollution, traffic congestion, wear and tear of the roads etc.

By: Millbrook

Millbrook — Fri, 27 Nov 2009 06:20:43 +0000

And yes, they do apply tax on top of tax – now that would be funny if it weren’t so damn insulting to our intelligence.

How many jobs would be created or saved if the extra money handed to the Government was spent or invested in others ways throughout Australia?? Why can’t we pay the same as other countries for cars??

By: Rick

Rick — Fri, 27 Nov 2009 06:14:31 +0000

Nicely illustrated – car buyers are cash cows – I’m sick of been gouged by the Government every time you need to buy a car – but unfortunately there’s not much one can do about it.

By: Carz

Carz — Fri, 27 Nov 2009 05:59:59 +0000

WOW! Great looking cars…definitely looks expensive and huge tax. This is so sad…I sometimes wish tax on cars like these are not that high…

By: Millbrook

Millbrook — Fri, 27 Nov 2009 03:32:22 +0000

They’re complaining about a handful of people in the market who are getting to drive a nice car without the heavy tax implications – And yet, Kerry Packer could get away with paying $42 Tax per annum (est.) from the Billions he earned. How much money did the Gov. invest/throw away in finding a way to close this loop-hole and how much will it actually save average Tax Payers??

While we’re on the topic, how much does the Government actually make from us numpties who let them get away with it!!

Example: Luxury/Prestige Vehicle Invoice Price to Motor Dealer $150,000
Jab 1 – + Import Duty @ 10% 15,000 – $165,000
Jab 2 – + Luxury Car Tax 33% of every $100 above $57,009 35,640 – $200,640
Jab 3 – + GST @ 10% 20,064 – $220,704
Jab 4 – + State Stamp Duty (NSW EG. 3%of $45k, then 5%) 10,135 – $230,839
Total Government GRAB!!! $80,839 or 53.89%

Not only that – us dumb fools then allow them to charge us “Stamp Duty” again when we buy it as a Used Car – wasn’t that supposed to go away when GST came in???
The average car will change hands 3 or 4 times in 8 Years and I’m not even going to get into the maths on that one; or the amount of money made on Rego Plates and So-called Premium Plates (don’t be a F**KWIT) – imagine; almost a million cars are sold in Australia each year and the Gov. (Fed & State) and RTA still cry poor when it comes to requests to build safe roads, improve infrastructure and give us the value we deserve instead of more fines & tolls, and new laws to hit us even harder in the pocket.

Waken up Australia!!!