Ouch Luxury Vehicle Tax
Submitted: Wednesday, Sep 24, 2008 at 17:28
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Member - DAZA (QLD)
Just heard on the News, that our Pollies have passed the Luxury
Vehicle Tax in the Senate, any Vehicle over 57KS has a 33% tax
added to the Purchase Price, they mentioned that Primary
Producers ect will be exempt, People buying 4x4's will have to think
twice, as if they wern't expensive enough allready,
O WHAT A FEELING.
Cheers
Daza
Reply By: Notso - Wednesday, Sep 24, 2008 at 17:32
Wednesday, Sep 24, 2008 at 17:32
Cripes, all the yota drivers will have to change over to Nissans!
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Follow Up By: Member - Footloose - Wednesday, Sep 24, 2008 at 17:36
Wednesday, Sep 24, 2008 at 17:36
And use the money they saved to buy a new engine ? LOL
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Follow Up By: Member No 1- Wednesday, Sep 24, 2008 at 17:37
Wednesday, Sep 24, 2008 at 17:37
oh no we wont
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Follow Up By: Member - DAZA (QLD) - Wednesday, Sep 24, 2008 at 17:45
Wednesday, Sep 24, 2008 at 17:45
Hey Footy
Thats not nice mate lol.lol.
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594116
Follow Up By: Member - Footloose - Wednesday, Sep 24, 2008 at 18:12
Wednesday, Sep 24, 2008 at 18:12
Dazza, too many posts about the LC's shortcomings on here give me the same feeling :))
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Follow Up By: Member - Paul W (VIC) - Wednesday, Sep 24, 2008 at 19:43
Wednesday, Sep 24, 2008 at 19:43
oh no we wont x2
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Reply By: Lex M - Wednesday, Sep 24, 2008 at 17:40
Wednesday, Sep 24, 2008 at 17:40
Not quite right. They've increased the existing 25% to 33% I believe.
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Reply By: Member - Phil G (SA) - Wednesday, Sep 24, 2008 at 17:41
Wednesday, Sep 24, 2008 at 17:41
Didn't think of my traytop as a luxury vehicle, but when new it would qualify, and I'm not a primary producer.
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Reply By: Member - Andrew (QLD) - Wednesday, Sep 24, 2008 at 17:51
Wednesday, Sep 24, 2008 at 17:51
This has been flagged for quite some months now, which major paragraphs mentioning this when buying new vehicles.....one couldn't miss it.
I thought the LCT was only added to the component above the $57,123 threshold, and is only increasing from 25% to 33%.......should only add ~$3400 to a 100K vehicle!
The messy part is the "notified" retrospective charging of this from 1 July 2008.....
Andrew
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Reply By: Member - Footloose - Wednesday, Sep 24, 2008 at 18:13
Wednesday, Sep 24, 2008 at 18:13
Ok so luxuary car tax has gone up....but not on a Jagauar X3 according to question time in Parliament ?
What gives here ?
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Follow Up By: Best Off Road - Wednesday, Sep 24, 2008 at 18:20
Wednesday, Sep 24, 2008 at 18:20
Footy,
I happened to be in a Jag Dealership last week (not for the purposes of buying a Jag I hasten to add) and noticed a New Jag for $51,000. X3? Not sure, I didn't take that much notice.
Jim.
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Follow Up By: Member - Footloose - Wednesday, Sep 24, 2008 at 18:28
Wednesday, Sep 24, 2008 at 18:28
Thanks for that, Jim. I thought they were much more exe but apparently not.
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Follow Up By: Member - Andrew (QLD) - Wednesday, Sep 24, 2008 at 18:37
Wednesday, Sep 24, 2008 at 18:37
What is a Jaguar X3??? Anything like a BMW X3?
Andrew
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Follow Up By: Member - Footloose - Wednesday, Sep 24, 2008 at 18:42
Wednesday, Sep 24, 2008 at 18:42
Sorry Andrew. Obviously my knowledge of luxuary cars is limited. Jaguar XJ series might have been the one .
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Follow Up By: Member - Andrew (QLD) - Wednesday, Sep 24, 2008 at 18:49
Wednesday, Sep 24, 2008 at 18:49
That's ok, i've never seen a new Jaguar for under 100K (not that i'm keeping an eye out for one) :-)
BMW's have a system where EVERYTHING is an option, which reduces the base price of the vehicle to under the LCT in many cases....though some of these options should be standard on this type of car IMO. Once optioned, they may go above the threshold and trigger LCT. It is a fun game balancing the price to reduce LCT. :-)
Andrew
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Follow Up By: Notso - Wednesday, Sep 24, 2008 at 20:10
Wednesday, Sep 24, 2008 at 20:10
I think the cheap Jag is a glorified Ford Mondeo.
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Follow Up By: Member No 1- Thursday, Sep 25, 2008 at 07:43
Thursday, Sep 25, 2008 at 07:43
the front wheel drive jag is
well under the 100k mark Andrew
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Follow Up By: Member - Andrew (QLD) - Thursday, Sep 25, 2008 at 07:57
Thursday, Sep 25, 2008 at 07:57
Thanks for that #1.
Andrew
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Reply By: Mike Harding - Wednesday, Sep 24, 2008 at 18:33
Wednesday, Sep 24, 2008 at 18:33
I don't see an issue with raising taxes on expensive items which, almost be definition, most people don't need.
Mike Harding
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Follow Up By: equinox - Wednesday, Sep 24, 2008 at 20:03
Wednesday, Sep 24, 2008 at 20:03
Hi Mike,
I need my vehicle, to go out bush ;))
I payed $5417 luxury tax on my ute, and the only luxury items are power windows and cloth seats.
Cheers
Alan
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Follow Up By: Stephen M (NSW) - Wednesday, Sep 24, 2008 at 20:05
Wednesday, Sep 24, 2008 at 20:05
So Mike, people work hard all their life and decide to travel around oz so they buy them selves a nice new van, and they need something to tow it with, lets say a nice new 200 series cruiser or a VX prado or TI patrol, that has the safety and power to tow the nice new van. So the couple get screwed once again for working so hard paying all thier taxes to finish off their retirement nicely which they deserve. And you have no problem with the government screwing them. Do they need a 200 series, prado or TI patrol maybe not ?? Could they tow it with a falcon or commodore ?? possibly. But if traveling the outback then why not have that bit more comfort etc. All up there getting screwed and you dont have a problem with that ?? Steve
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Follow Up By: Member - Hugh (WA) - Wednesday, Sep 24, 2008 at 22:44
Wednesday, Sep 24, 2008 at 22:44
Mike,
I don't have an issue with the tax increasing, however in my view it would have been appropriate to review the threshold at which it applies. Vehicle pricing has been somewhat offset by reducing tarrifs and FTA with Thailand but has still increased with inflationary pressures. I wouldn't be surprised to see an escalation in vehicle prices over the next few years. So what a nice time to increase the tax rate!
The current threshold of $57k has been eroded over the years and can hardly be deemed representative of a luxury vehicle purchase anymore. I don't know when the current theshold was introduced (someone out there will know) but if indexed to inflation, then I wouldn't be surprised that it should be somewhere between $80-100k.
Well that's where I think it should be.
So much for tax reform... This has all the hallmarks of a nice little money earner at the expense of the average Joe.
Regards, Hugh
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Follow Up By: Member - Lionel A (WA) - Thursday, Sep 25, 2008 at 09:08
Thursday, Sep 25, 2008 at 09:08
$57k.......average Joe........dont I wish........lol.
Cheers.....Lionel.
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Reply By: pojo - Wednesday, Sep 24, 2008 at 20:50
Wednesday, Sep 24, 2008 at 20:50
Dont blame me you voted for them and it can only get worse
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Reply By: Member - Mike DID - Thursday, Sep 25, 2008 at 07:43
Thursday, Sep 25, 2008 at 07:43
" they mentioned that Primary Producers ect will be exempt"
- yet another example of the Government hitting the poor individual who isn't in a powerful lobby group !
Why is diesel in Australia more expensive than petrol, whereas in most countries it's cheaper?
Because businesses get a Diesl subsidy from the government to make it cheaper - us poor suckers have to pay the full amount.
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Reply By: Member - Paul Mac (VIC) - Thursday, Sep 25, 2008 at 09:39
Thursday, Sep 25, 2008 at 09:39
I believe this tax is totally unfair !!!!!!!
In my opinion a luxury car equates to a porsh , BMW or mercedes and the like not a 4 wheel drive Patrol, Cruiser , Pajero or similar. I would have thought 'luxury' would kick in at around $100,000.
Without wanting to get too political, this is just typical of the labour party who buggered up the superannuation system when Keating introduced the income and assets
test on super income to stop some of the countries wealthiest people from collecting aged pensions and welfare. Instead they were successful in stopping many people on modest incomes who had struggled and saved to secure a reasonable retirement. I can only assume the labour party is full of policy advisors who believe if you don't drive a standard Holden or Ford
sedan then it must be a luxury to drive anything else.
Perhaps things might change back in 2 years time.
Owning a 4 wheel drive isn't a luxury. Perhaps filling it up is though.
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Reply By: Member - Porl - Thursday, Sep 25, 2008 at 10:39
Thursday, Sep 25, 2008 at 10:39
It's the tour operators I feel sorry for, they're not primary producers but it's a business and they contribute business taxes same as primary producers and employ people same as primary producers ...
Oh well, time for them to buy blown up nissan 3.0L patrols and do Toni projects on them and claim it as a business expense I spose.
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Reply By: austastar - Thursday, Sep 25, 2008 at 15:52
Thursday, Sep 25, 2008 at 15:52
Not exactly on the same subject - but - similar.
Story as told to me:
Debate in parliament about the unfair taxation on modes of transport. One member ranting on about how some of his constituents were paying a lot of extra in tax for their wheel-chairs and yet how unfair it was that for others with more money, there was no similar tax on Lear jets.
Dry laconic voice from the back bench.
"So stick wings on the wheel chair"
cheers
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