There are renewed calls to scrap Luxury Car Tax as figures show buyers of Toyota own family cars are paying extra than maximum status manufacturers.EXCLUSIVE
Toyota customers are paying extra Luxury Car Tax than buyers of maximum status manufacturers, prompting renewed calls to scrap the 33 in step with cent levy on automobiles priced above the $66,331 threshold.
Luxury Car Tax has reaped the Federal Government more than $5 billion over the past decade – together with more than $695 million within the ultimate economic year alone.
A unique research by means of CarAdvice determined Toyota clients paid $99.7 million in LCT final year compared to $97 million for Porsche, $eighty four.5 million for BMW, $eighty one million for Jaguar/Land Rover and $45 million for Audi.
Buyers of supercars and limousines contributed a fragment of the LCT paid by using Toyota customers in 2018.Figures obtained by CarAdvice display Ferrari shoppers paid greater than $30 million in LCT in 2018, at the same time as Maserati clients contributed $18 million, in advance of Bentley ($17 million), Lamborghini ($14 million), Aston Martin ($13 million), McLaren ($7.Five million) and Rolls-Royce ($6 million).
The only motorists who paid more in Luxury Car Tax than Toyota clients final year have been Mercedes-Benz buyers, who crowned the listing at $a hundred and seventy million.
In a bizarre twist, handiest three Toyota fashions are challenge to LCT but dozens of cars from status manufacturers are not slugged thanks to a loophole in tax guidelines that favour certain sorts of luxurious vehicles.
Confidential figures display 45,800 Toyota clients paid LCT on positive variants of the Kluger SUV, Prado four-wheel-drive, and LandCruiser two hundred Series off-avenue wagon in 2018 – however simplest 13,000 Mercedes customers have been slugged with the extra 33 in keeping with cent tax.When Luxury Car Tax turned into increased from 25 consistent with cent to 33 in keeping with cent by way of the Rudd Labor Government in May 2008, so-called gasoline-efficient cars (that devour 7.0L/100km or less) were given a better LCT-free threshold of $seventy five,000.
The anomaly method that a $69,2 hundred Toyota Kluger, a $seventy three,six hundred Toyota Prado, and a $78,000 LandCruiser attract LCT – but dozens of Audis, BMWs and Mercedes-Benzes and different luxury automobiles are not hit with the more tax (see listing underneath).
In the Audi range, 38 motors from its ninety-car line-up are exempt from LCT at the same time as 29 of 89 BMW fashions keep away from the extra 33 per cent tax. And 25 of Mercedes’ 103 passenger cars are also now not problem to LCT.Another anomaly: top-cease utes along with the $75,000 Ford Ranger Raptor and $seventy nine,000 Mercedes X-Class X350d Power edition do no longer entice LCT because commercial cars are exempt.“The majority of folks who pay Luxury Car Tax are average Australians who buy cars nicely beneath $a hundred,000 to transport their families,” says Tony Weber, the CEO of the Federal Chamber of Automotive Industries. “Luxury Car Tax has turn out to be redundant inside the Australian car marketplace and the time has come to quit the charade that that is a justifiable, realistic or even a vital tax.”
A statement from market chief Toyota said: “We consider [Luxury Car Tax] is an unfair impost on Australians and the automobile industry, because it applies simplest to motors and now not to other objects. Motorists already significantly contribute to government sales when purchasing a car via GST, stamp responsibility and registration charges.”
Industry insiders advised CarAdvice both facets of politics are reluctant to scrap Luxury Car Tax amid fears of a voter backlash.