Luxury Car Tax (LCT) Increase - How Do You Feel?

[Steve]

they are looking at this one as well, however, i think that the tax should be on the petrol, not on the car. If I own a big expensive V8, but never drive it, where as if you own a misely 4 cylinder, but rack up long distances, then a tax on the car itself isnt green. IMO to be effective the tax should be on the petrol

There's already an extraordinary amount of taxes and excises and taxes on excises on petrol, though.

I don't mind the slight increase in "luxury" car tax but $57000 is far too low for it to kick in.

[STV4SYT]

$100k i reckon is a fair starting point for it.

Although maybe, for those that have "collections" the limit lowers and the tax increases for each subsequent car. And definitely increase it for luxury (no-essential) items, as someone suggested, leisure craft, helicopter, private jets. But alas all the people that actually own all these also have the money to have accountants that will manage to minimise the tax they pay anyway.


I saw this happen a few years back when the UK government increased the cost of road taxes for trucks, a large percentage of the hauliers rented an office in southern ireland and re registered all their trucks there. guess what happened next?

[richdave]

Tax changes arent that simple.

have you ever rented a house?

yes a few and have owned an investmaent place too.

With no negative gearing in place, why would people buy rental properties?thered be a lot less rental properties available, and those available would cost a whole lot more to rent.

that's why you would stage things so say over a 10 year period the deductibility reduces (Yr 1 100% of expenses, Yr 2 90% etc..) so the market and anyone with investment property can adjuast their financial situation.

Oh and people buy investment prioperty to GET RICH not for any socially minded "give the poor a house" kinda reason. They would still get the CAPITAL GAIN from owning the prioperty too so they are not lucking out.... just not being subsidised by the poor smo who has to rent their investment AND pay tax too...

Subsitise first home owners and/or home owner mortgage interest and more people could AFFORD a place and not have to rent. Shift the stock of houses from the investors portfolio to the hands of the private citizen who wants to own and live in it.

As for anyone with 2 investment properties bleating about the increase of LCT... My heart bleeeds for you

[theplanner]

I agree that the rate cuts in too early. What we need is true tax reform but NONE of the pollies, left or right, have the balls to do it.

Tax law should be simple.

Earn money = pay tax

Make it flat rate so it is equitable across the board, Apart from say a $10k taxfree threshold, NO exemptions, write off, refunds, just a simple LOWER flat rate. No need to do tax returns....

While ya'll are bagging Rudd, remember that Howard did not have the balls to abolish negative gearing which is welfare for the rich by stealth. How much of your hard earned paid in tax goes to subsidise the guy across the roads rental?

Agree, what we need is a simple tax structure. One that is equitable, so the general masses don't waste their time devising ways to minimise or in extreme cases evade taxes and the government don't have to waste taxpayers money chasing the evaders. Imagine, if it were simpler the late Kerry Packer would have paid his taxes.

Simple Tax Structure = Win Win for all
Improve productivity

[h100vw]

$100k i reckon is a fair starting point for it.

Although maybe, for those that have "collections" the limit lowers and the tax increases for each subsequent car. And definitely increase it for luxury (no-essential) items, as someone suggested, leisure craft, helicopter, private jets. But alas all the people that actually own all these also have the money to have accountants that will manage to minimise the tax they pay anyway.


I saw this happen a few years back when the UK government increased the cost of road taxes for trucks, a large percentage of the hauliers rented an office in southern ireland and re registered all their trucks there. guess what happened next?

Yeah, Eddie Stobart fitted extra tanks to his trucks so they could fill up on the continent and save money on fuel.

The UK has just had a big tax change on cars based on emissions. Not popular
Gavin

[jayjay]

mm, there'd be riots here.. my old commodore on a really really REALLY good day, sits on about.. 14l/100. i'm not to fussed cause we're moving to diesel very soon, but imagine every die hard v8 fan not being able to drive their pride and joy..

[gareth_oau]

mm, there'd be riots here.. my old commodore on a really really REALLY good day, sits on about.. 14l/100. i'm not to fussed cause we're moving to diesel very soon, but imagine every die hard v8 fan not being able to drive their pride and joy..

14 Jayjay? 14? i dreeeeam of getting 14 My main drive is a 375KW FPV GT-P, and I average 19L/100, and sometimes get instantaneous readings of 99.9L/100

[richdave]

Simple Tax Structure = Win Win for all
Improve productivity

Amen Brother!!! Although there are a lot of accountants anw lawyers who make their living from our complex and inefficient tax laws... We can always re deploy them to something useful.... like fish food

[neil]

We all pay Luxury car Tax, it doesn't matter what type of car you own.

How many 100's of statemans are running around Canberra for the follies.
Its the general public which will foot the bill for their privilege.

[R36 Dreamer]

We all pay Luxury car Tax, it doesn't matter what type of car you own.

How many 100's of statemans are running around Canberra for the follies.
Its the general public which will foot the bill for their privilege.

With the fleet discounts the govt gets, I reckon a statesman would be under LCT, though Caprices are a different story.