Luxury Car Tax

Alistair

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Now I have a severe dislike for Rudd and his Labor government, but I'd like to keep this particular discussion to the luxury car tax rather than their overall performance.

Now can someone tell me what the **** this is all about??

Is it nothing more than a token policy for "battlers" and "working families" to think that Rudd and co. are going in to bat for them?? Give me a break. There are so many flaws with this policy.

1) The government's definition of a "luxury car" is one that is priced at $57k or over.

I don't know if this will change, but what made them arrive at that particular number? I was walking past a Mercedes dealership on my way to work yesterday and was checking out the pice tags on the window of each car. The higher end cars were $90k+ and quite obviously "luxury" whatever way you wanted to look at it. However there were a LOT of cars priced between $45k and $56k which makes me wonder how you can own a really nice looking Mercedes and not have it classed as a "luxury car"?

On the other hand, my dad used to own a Ford Territory, though I actually think it was leased through his company. Depending on which model you choose, some of those things can be priced well over $60k. So a Mercedes is not luxury, but a Ford is? Come on...

2) You are not necessarily "wealthy" because you own a nice car!

Why should luxury car owners be slugged extra simply because they prioritise cars in their life? They might have an average job, average house in the suburbs but REALLY love cars and have therefore saved a lot of money to buy their dream ride. It's not something I'd do and you can argue people like that have their priorities mixed up, but who is the government to pigeonhole people that own luxury cars in to being "wealthy"?

On another note (while still being relevant), it's like the private school system. While the majority of students come from wealthier backgrounds, quite a few don't. Their parents have just worked hard and sacrificed a LOT more for their children's education. It's a similar principle. While an investment in the future of your family is a lot different from a car, a lot of people have made sacrifices and saved money to indulge on what is important to them without being "wealthy".

I just think it's a pathetic, token tax to window dress a Robin Hood budget :mad:

EDIT: and FWIW, I don't even own a car!
 
The LCT bracket was from $51,826 and 35% GST/LCT (Luxury Car Tax) applies on any balance in the previous budget. Not a big jump. Mercedes only has two models which will come to under $57,000 brand new, the A and B class which were already priced in for lower end buyers and was part of their strategy in expanding their target market.

I don't see what the problem is with charging a LCT on an expensive car. Its the consumer's choice to purchase a car over $50,000 and if they can think of splurging, then the LCT shouldn't be an issue.
 
The LCT bracket was from $51,826 and 35% GST/LCT (Luxury Car Tax) applies on any balance in the previous budget. Not a big jump. Mercedes only has two models which will come to under $57,000 brand new, the A and B class which were already priced in for lower end buyers and was part of their strategy in expanding their target market.

I don't see what the problem is with charging a LCT on an expensive car. Its the consumer's choice to purchase a car over $50,000 and if they can think of splurging, then the LCT shouldn't be an issue.

EX u may be the most well read person on these forums. And that is a compliment not me being sarcastic. :worthy:
 
Im borderline on this 1.....
i can see how 57k isnt a huge amount these days.
However
If you can afford $57k + for a car you can most likly afford an extra grand or so for our beloved needy government .:lol:
If they needed to get extra cash from somewhere ide rather they hit those that can afford it the most.
Pensioners/struggling families dont need another hit to there hip pocket..
 
This is pretty much the same as Local Gov't in Tassie, with the way Local Council's charge their rates per year.

AAV (Assessed Annual Value) based rates.

It pisses me off, as our house as a higher AAV than the neighbours' yet we both receive the same servies (Water, Sewerage & Garbage), yet we are paying more rates each year than they do.

For what??

Doesnt mean we paid more for it when we brought it....

Another arguement, down Sandy Bay (the cream' de crop of Tas), a place sold for $1.5M were paying more rates on a place that sold for $4M!!!!

Go figure...

But that's off-topic as it's LG not Commonwealth.

Similarly related tho.

End my rant, lol.
 
Agree with point 1. If you wanted a people mover you need to spend more and it will get into that range. So, the tax should only be for sedans, and a higher level for say 4WD and People movers, etc etc.

The second point I am not too sure about. If you are going to spend on something that people in you salary range usually cannot afford, then it is considered a luxury.

Its like people on welfare, they go and spend their money buying $250 Air Jordans. WTF!

Whatever it is, it is still considered a luxury so it should be taxed that way.

Just like cards, I save up to buy. I spend a lot, it is a luxury for me. If it gets taxed that way I understand, but it just means I do not spend on that as much.

That is what the tax is for - to curd people's spending. If you cannot really afford it, then do not buy it. If you can really afford it, then complain about the tax, but you will still buy it in the end.

Now I have a severe dislike for Rudd and his Labor government, but I'd like to keep this particular discussion to the luxury car tax rather than their overall performance.

Now can someone tell me what the **** this is all about??

Is it nothing more than a token policy for "battlers" and "working families" to think that Rudd and co. are going in to bat for them?? Give me a break. There are so many flaws with this policy.

1) The government's definition of a "luxury car" is one that is priced at $57k or over.

I don't know if this will change, but what made them arrive at that particular number? I was walking past a Mercedes dealership on my way to work yesterday and was checking out the pice tags on the window of each car. The higher end cars were $90k+ and quite obviously "luxury" whatever way you wanted to look at it. However there were a LOT of cars priced between $45k and $56k which makes me wonder how you can own a really nice looking Mercedes and not have it classed as a "luxury car"?

On the other hand, my dad used to own a Ford Territory, though I actually think it was leased through his company. Depending on which model you choose, some of those things can be priced well over $60k. So a Mercedes is not luxury, but a Ford is? Come on...

2) You are not necessarily "wealthy" because you own a nice car!

Why should luxury car owners be slugged extra simply because they prioritise cars in their life? They might have an average job, average house in the suburbs but REALLY love cars and have therefore saved a lot of money to buy their dream ride. It's not something I'd do and you can argue people like that have their priorities mixed up, but who is the government to pigeonhole people that own luxury cars in to being "wealthy"?

On another note (while still being relevant), it's like the private school system. While the majority of students come from wealthier backgrounds, quite a few don't. Their parents have just worked hard and sacrificed a LOT more for their children's education. It's a similar principle. While an investment in the future of your family is a lot different from a car, a lot of people have made sacrifices and saved money to indulge on what is important to them without being "wealthy".

I just think it's a pathetic, token tax to window dress a Robin Hood budget :mad:

EDIT: and FWIW, I don't even own a car!
 
Agree with point 1. If you wanted a people mover you need to spend more and it will get into that range. So, the tax should only be for sedans, and a higher level for say 4WD and People movers, etc etc.

The second point I am not too sure about. If you are going to spend on something that people in you salary range usually cannot afford, then it is considered a luxury.

Its like people on welfare, they go and spend their money buying $250 Air Jordans. WTF!

Whatever it is, it is still considered a luxury so it should be taxed that way.

Just like cards, I save up to buy. I spend a lot, it is a luxury for me. If it gets taxed that way I understand, but it just means I do not spend on that as much.

That is what the tax is for - to curd people's spending. If you cannot really afford it, then do not buy it. If you can really afford it, then complain about the tax, but you will still buy it in the end.


Agree with your points, however I thought the luxury car tax was aimed at the majority of high end cars that were imported to assist the aussie Auto market and also reduce ppls spending and curb inflation.. Perhaps a further tax hike on imports??
 
Agree with your points, however I thought the luxury car tax was aimed at the majority of high end cars that were imported to assist the aussie Auto market and also reduce ppls spending and curb inflation.. Perhaps a further tax hike on imports??

Not true about imports. Holdens above $57,000 are also hit with the LCT.
 
most HSV's, GT-Ps etc will be hit, but like the people say, we can winge as much as we want, at the end of the day you pay what you can afford
 
Does the $57k tax threshold apply to NEW cars only or used cars?

Eg. if I was good "friends" with a car dealer and he sold me a used Mercedes SLK for $50k and I paid him another $50k under the table, how would it be taxed? Would it be taxed on the sale value of $50k or do they have a table that classes and evaluates each vehicle on the market?
 
Does the $57k tax threshold apply to NEW cars only or used cars?

Eg. if I was good "friends" with a car dealer and he sold me a used Mercedes SLK for $50k and I paid him another $50k under the table, how would it be taxed? Would it be taxed on the sale value of $50k or do they have a table that classes and evaluates each vehicle on the market?

Had to look it up as I wasn't sure, but:

"There are a number of cases where Luxury Car Tax does not apply on vehicle purchases over $57,009:

if the vehicle was sold or imported prior to 1st July 2000
if the car is supplied over two years following the local build date or, if imported, the vehicle compliance date.
if it is an emergency vehicle (eg ambulance etc)
if it is not GST-free and is specially fitted out for transporting disabled people seated in wheelchairs
if it is a campervan or motor home
if it is a commercial vehicle that is not designed for the principal purpose of carrying passengers.
if the vehicle is supplied by private sale"
 
What crap. It's a good policy, if you can afford a car over 57k you can pay the tax. No one needs a car over that, it's a want not a need purchase I don't see the problem. Should be more like this.. TVs over 120cm for example. Exquisite boxes :lol:
 
Until local car companies lower their costs for new vehicles, Australian's will be forced to buy imported crap from Korea, Japan, Germany, etc, etc...

What about if someone want's to build a $500,000 house? Should they get taxed on that more so than someone wanting to build a $200,000 house?

Obviously they'll have to pay more fees to a Local Council but why Gov't too???
 
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