The Australian Automotive Dealer Association (AADA) says it is disappointed tonight’s Federal Budget failed to announce the removal of new car taxes such as the luxury car tax.
AADA has expressed its disapproval of what it describes as a “missed opportunity to reward consumers and local businesses.”
AADA chief executive David Blackhall says he expected better from the government post car manufacturing.
“Unfortunately, both the passenger vehicle tariff and the luxury car tax remain on the books and will collectively generate almost $1.3 billion in 2018-19, significantly more than previously forecast,” he says.
“The first budget since the cessation of local passenger vehicle manufacturing provided the Government with an opportunity to modernise the taxation regime for new cars.”
Blackhall says as the Coalition government is looking at an election later in the year, it could have benefited consumers and small business by making new safer cars more affordable.
“The sale of new cars brings significant societal benefits as they are safer, more environmentally friendly and more fuel efficient,” he explains.
“Improving road safety, reducing vehicle emissions and bringing down energy costs are all Government priorities and these taxes hinder progress towards these goals.”
It’s news he says won’t help the AADA’s 1500-plus automotive franchise businesses, nor support the automotive industry.
“Increased taxes on the sale of new cars by various levels of government simply force consumers to pay more and in the process hurt many of the people working in the automotive industry, such as sales staff, finance providers and workshop technicians,” he adds.
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