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Luxury Car Tax - What a Joke!

Discussion in 'Living Room' started by alexm, 2nd Jul, 2015.

  1. alexm

    alexm Well-Known Member

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    So we can purchase multi-million dollar properties, businesses, boats etc. and pay the relevant taxes however when you buy a new car worth more than $63,184 (or $75,375 for a fuel efficient vehicle), we get hit with an extra 33% tax!

    Considering the local car industry is dead (or dying), this is ridiculous!
     
    Last edited: 2nd Jul, 2015
  2. Be Developer

    Be Developer Property Developer Business Member

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    @alexm

    +1

    Jag xf...basic model 69k...moment u spec it up...hits a threshold...n then easy 90k reach...
     
  3. alexm

    alexm Well-Known Member

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    Spot on Chirag.

    Take a look at the Holden Calais or Toyota SUV's. They're not flash cars however they too get caught up with the LCT tax. Our taxation system is flawed and this is another example.
     
  4. Investig8

    Investig8 Well-Known Member

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    Couldn't agree with you more, it is a joke since the standard SUV runs between 50-75K, it's an exceptional cash grab.

    I refuse to pay it no matter how much I love the car, all our company vehicle purchases have a 60K cap for this reason.
     
  5. AndrewTDP

    AndrewTDP Urban Planning Consultant Business Member

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    I have no problems with the tax as such.

    but when it was introduced it basically covered high end models - 7 series BMWs and the like.

    Now even a base model 3 series is caught up in it. And that needs to be changed.
     
  6. MRO

    MRO Well-Known Member

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    The tax is ridculous and as @AndrewTDP said, the threshold hasnt move much so now inlcudes many cars that are far from being classified as luxury.

    However, I am too tight to even look at cars in this price range so doesnt really effect me personally.:)
     
  7. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    So a customer calls be up and wants to do an equity release on one of his properties so he can buy her husband a BMW i8 - he sends me the invoice for the purchase and the luxury car tax portion came to $54,000. Wowzers.....
     
  8. alexm

    alexm Well-Known Member

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    @Shahin_Afarin , your customer released equity to purchase a car? IMO that is insane!
     
  9. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    When car manufacturing exists stage right in Australia for good - it'd be nice to think they will review some of these taxes.

    I wouldn't hold my breath though.
     
  10. Scott No Mates

    Scott No Mates Well-Known Member

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    Why? The car industry (including petroleum) is subsidised to the hilt. If the same tax breaks were removed from the industry and the incentives shifted onto public transport then the demand & extent of private use of cars may drop.

    eg: ludicrous FBT concessions based on the number of kms driven. Ability to salary sacrifice for a car (or two or more).
     
  11. sanj

    sanj Well-Known Member

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    Nothing inherently wrong with that, they could have a bucket load of cash and assets
     
    Shahin_Afarin likes this.
  12. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Some investors have are incredibly asset rich and have decent servicing to boot.
     
  13. Bayview

    Bayview Well-Known Member

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    Wait until the brand new version of that same car has gotten old enough to have depreciated to below the extra tax figure, and then buy one.

    Probably only need to wait 18 months or so for that to occur, and the car is still basically brand new.
     
  14. Tillie

    Tillie Well-Known Member

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    I thought that tax law allowing FBT concessions based on the number of kms driven has already been changed and kms does not matter anymore. I might be wrong though...