Luxury Car Tax Increased

[Guest bigAPE]

Yesterday the Australian Senate passed the expected increase in Luxury Car Tax (LCT) from 25% to 33%. This is after the bill was rejected twice over the past two months, it was eventually passed after concessions

 

However to confuse things further, the senate amended the bill under pressure from the Green party to include an exclusion on vehicles up to $75,000 which consume less than 7 litres of fuel per 100 Km. According to The Australian this would mean "Twenty five imported car models - including the Audi A4, BMW 3 series and Jaguar X-type - would be exempted from the tax altogether as a result of the change". This is as yet unqualified and also untested with Customs/ATO, but will probably only apply the very low end models in each marques range.

 

Source: The Australian (one of many)

 

This will specifically have a negative effect on anyone looking to import a high end car to Australia. As an example, this would raise the duty on a 2006 Porcshe 911 C4 from $24,000 to $33,000

 

Al