Brands pass on luxury car tax reductions
WITH Australia's Luxury Car Tax (LCT) threshold raised from $61,884 to $63,184 from July 1, several manufacturers have announced savings will be passed directly on to customers.
Shoppers of luxury cars that drink more than 7.0-litres per 100km will save around $390, and the likes of Jaguar, Land Rover, Lexus, Mercedes-Benz, Toyota, Volvo, BMW, Porsche and Audi were quick to say they'll knock the figure off their list prices.
Porsche even rounded its saving up to $400, meaning your entry-level 911 Carrera is down from $208,600 to $208,200, while that Turbo S you were eyeing is now a snip at $444,500.
There have been calls for the controversial LCT to be abolished in the wake of Australian car manufacturing winding up, as there will soon be no local market to protect.
Buyers are stung with a 33% tax on a car's purchase price above the $63,184 threshold, significantly adding to the sticker price of "luxury" cars sold in Australia.
Confusingly, there is no equivalent luxury tax on the likes of yachts for example, even multi-million dollar ones.
Andrew Doyle, MD of Audi Australia, reflected many opinions by saying his company sees any reduction in the LCT, no matter how small, as a positive move.
"The concession isn't a huge sum of money, however we are not in favour of any tax that penalises luxury vehicle owners any more than buyers of other luxury items, therefore we are very pleased to pass along any form of LCT reduction to our customers," he said.
Vehicles classed as fuel-efficient under the taxation system (better than 7-litres/100km) had their threshold remain at $75,375.