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

**PaulRozza** · 12-05-2008, 08:57 AM

Well, the 'new' government has decided to hit those of us fortunate enough (read: those of us that work our asses off to be in a position) to afford a 'luxury car'. As one of many that have preordered an R36 Passat, this is just another few $'000 into the govt's coffers. Anyone else unhappy with this?

**Vene** · 12-05-2008, 09:07 AM

So if the contract is signed, does it still have provision to introduce this tax?

**RhysQ** · 12-05-2008, 09:41 AM

Originally Posted by PaulRozza

Well, the 'new' government has decided to hit those of us fortunate enough (read: those of us that work our asses off to be in a position) to afford a 'luxury car'. As one of many that have preordered an R36 Passat, this is just another few $'000 into the govt's coffers. Anyone else unhappy with this?

the tax is for cars over $57,000...correct? i had a look in the paper at a schedule of the taxes for random different car prices. for a $67,000 car (ford territory as per The Bulletin) the tax difference from current is $500. i'm pretty sure if you can afford a $67,000 car you can afford the extra $500.

as for a $309,000 car (porsche as per The Bulletin), the tax difference from current is $15,000. once again, if you can afford a car worth that, $15,000 would be bread crumbs.

final one, a $100,000 car, the tax rise is from $8,000 to $10,500.....not really that much.

the one thing however, i don't agree with, is the price at which the luxury car tax starts. since when is a $57,000 car a luxury car. i don't consider a toyota landcruiser a luxury car.....do you?

it should be up around $70,000 - $75,000.

Cheers,
Rhys

**Cro** · 12-05-2008, 09:43 AM

I'm quite annoyed as I work bloody hard to get the things I want.
All the extra $$$ I'll be paying will be going to some slacker who is happy on 50k a year or less for the rest of their life and that gives me the ****s.
This government seems to punish people for working hard and wanting to advance their careers.

**STV4SYT** · 12-05-2008, 10:25 AM

Th unfortunate thing is that there is now going to be a lot of cars with lower specs to fit under the $57k limit. it is way too low, most decent spec people carriers fit this, so are they the underprivileged family with 9 kids will have to pay luxury car tax to ferry their family around???

**Vene** · 12-05-2008, 10:26 AM

Agree entirely........besides we're having to pay GST, LCT and stamp duty!!! A triple tax (with overlap) just to buy a CAR! (not to mention the worse of them all - income tax), and the government is wondering why there is a steady stream of skilled workers leaving the country.

**OilBurna** · 12-05-2008, 10:40 AM

good old krudd govt... sign of things to come. First alcohol taxes now this.

old chinese proverb taxing the rich does not help the poor.

whatabout the family that needs a 7 seat vehicle ie a Tarago at 65k.. Why not tax watches, boats, helicopters etc over a certain amount instead etc. They ued crap examples ie Jag S Type vs more normal every day type vehicles. At least Mr Bracks gave me some money back when I bought mine by cutting the stamp duty in Vic.

**Wolves1877** · 12-05-2008, 10:40 AM

Just shows how stupid Labour are. If you increase the price of luxury items, it creates a greater void between cheaper priced products. This then encourages the manufacturers of the lower priced products to increase their prices, whilst still retaining the same price differential as before the increase in LCT.

So in the end, all cars go up in price and that further adds to inflation... the very thing Robin Hood is supposed to be trying to reduce.

**R36 Dreamer** · 12-05-2008, 10:48 AM

Originally Posted by OilBurna

good old krudd govt... sign of things to come. First alcohol taxes now this.

old chinese proverb taxing the rich does not help the poor.

whatabout the family that needs a 7 seat vehicle ie a Tarago at 65k.. Why not tax watches, boats, helicopters etc over a certain amount instead etc. They ued crap examples ie Jag S Type vs more normal every day type vehicles. At least Mr Bracks gave me some money back when I bought mine by cutting the stamp duty in Vic.

I like the fact the example Swanny used is of a superseded model - the SType is being replaced by the XF, if it hasn't already.

At the end of the day it is only a couple of hundred bucks in R36 land, but it will be interesting to see whether exotics get a bucketload of pre-orders to try and get in prior to the new tax rate (if that will work).