Just doing my sums it will add the base price on a V6 TDI (the best seller in Oz) at $74,990 and extra $1058.78. The current luxury car tax (LCT) was $3308.70 on top of the price now will be $4367.48..... that is not including the $6516.48 we pay towards GST.
This means we go from paying 13.1% in taxes to now 14.32% taxed in real terms.
So will this mean the buget model Touareg will now appear in Australia without such items like net partition, 6 disc CD changer and alarm to keep the price still at $74990.

Well I hope my trade in value will also increase that extra grand...looks like I'll need it unless a I go one of those Korean photocopies.

 

mmm may have to re think that R50 purchase

shame on all you tools who voted for this gov ... oh well at least they will only get one term!!!!!!!!!!!!!!!!!!

 

Most likely all cars will go up in price, in fact cars below the threshold will be in greater demand (new or 2nds) thereby driving up prices......and they're supposed to be 'Fighting Inflation'

Isn't it a great way to encourage people to aim for mediocrity as well......
Cheers

 

yeah, but with Diesel likely to be well over $2/l in the near future, its not going to be easy to shift these bread vans when we want to get rid of them......

On another note, I read that the Fed Govt. is changing the advertising laws such that when goods such as cars, airtickets, Holidays etc. are advertised, they have to publish the actual full retail cost incl. all taxes and charges. Thats going to be very interesting for the motor industry who now gets away with murder in the way they advertise. Imagine the fact that they will have to advertsie a price that includes actual cost + taxes+ surcharges + dealer delivery etc. Not sure when it comes in, I think this year....

 

Actually with the Australian Dollar where it is at the moment a V10 should be under the tax if we look at what a V10 can be purchased for in the US ?? Not quite but European car importers have a lot more room to move now than before, as the $A is very strong compared to 12 or 24 months ago.

 

got a quote for a fully loaded v6...u dont even want to know how much the damn lct is!!!

 

A luxury car tax is just plain stupid --- no matter what country it's in. But hey, what else are politicians good for other than legalized theft!

 

Hoodie,

Great idea about indexing and I have advocated for this approach for many years....the only unfortunate floor in this thinking is it goes against Government Tax Policy 101.... that is, they budget specifically for bracket creep effects. Meaning, all goods and services increase in value over time, but the thresholds (level at which tax kicks in) are fixed to deliever increasing proportion of tax back!

Suppose the dealers will just have work harder on the figures to reduce the net amounts!!!!

Craig