Thursday 8th December 2016


Removing Luxury Car Tax a good move for consumers


The Motor Trade Association of South Australia today joined with South Australian Treasurer Hon Tom Koutsantonis MP to push for the abolition of the Federal Government’s Luxury Car Tax. 

“There is no need for a Luxury Car Tax, a tax that hurts consumers and we again call on the Federal Government to remove the tax,” MTA Chief Executive Officer Mr Paul Unerkov said.

“While there was a domestic vehicle manufacturing sector, the Luxury Car Tax may have had some merit, but with car manufacturing winding down, the Luxury Car Tax no longer supports local jobs.”

The Luxury Car Tax is applied at 33% for every fuel-efficient vehicle priced at more than $75,526, other vehicles priced more than $64,132 and is indexed annually. 

“Most people would think a Luxury Car Tax was for a premium or high-end sports car, but there are a number of 4WDs and work utes that are currently being charged the Luxury Car Tax.

“Low emission vehicles also attract the Luxury Car Tax and with the State Government and private sector looking to reduce their carbon emissions removing this tax will make more of these vehicles accessible to consumers.

“The Federal Government has made numerous comments about wanting to reduce costs of vehicles for consumers, reduce red tape and cut taxes. One of the easiest, most effective ways the Federal Government can do this is to remove the Luxury Car Tax.

“As Treasurer Koutsantonis has said, it is hard to justify continuing to raise revenue from Australians through these taxes.”