Toyota has urged federal politicians to abolish the luxury-car tax, describing the impost as ‘discriminatory and inefficient’.
The Australian Tax Office has confirmed the threshold has risen to $61,884 from July 1 – an increase of $1,568 on the previous $60,316 trigger.
As a result, the recommended retail prices of 19 Toyota LandCruiser 200, LandCruiser Prado, Kluger and Tarago vehicles have fallen – 17 of them by $470.
Toyota’s executive director sales and marketing Tony Cramb says the reduction provided some relief for new-car owners.
But Cramb says the luxury-car tax should be abolished – especially as there was no equivalent tax on items such as antiques, yachts, motor boats and jewellery.
“Australian motorists are already heavily taxed with GST, stamp duty and registration fees when buying a new car, as well as road tolls and a hefty tax on fuel,” says Cramb
“New-vehicle buyers should not be singled out to pay the additional burden of a so-called luxury tax – especially one that is so inefficient and poorly designed.”
The tax rate was originally 25% on the value of the vehicle above the threshold, but was increased to 33% in 2008.
“Application of the tax does not recognise that many vehicles in this category offer important safety, environmental and theft-reduction benefits. The tax also results in significant compliance costs that are borne by our dealers,” says Cramb.
The luxury-car tax threshold remains at $75,375 for vehicles with an official combined fuel consumption rating that does not exceed 7.0 litres/100km.
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