Axe the so-called 'luxury' car tax: Bernardi

November 27, 2018

Conservative Party leader Cory Bernardi has moved today to axe the "Luxury Car Tax" (LCT) as the government opens up the LCT for consideration within a bill on multinational tax avoidance.

The ‘luxury’ term is so arbitrary as to be a joke, applying most often in Australia to the popular work vehicle - the Toyota Landcruiser - as well as the Prado, Nissan Patrol, accessorised utes like the Ford Ranger and minivans.

The tax is charged at 33% on the proportion of vehicle prices over $66,331 (or $75,526 for ‘greener’ e.g. electric vehicles) but, for instance, the Toyota Landcruiser meets that threshold and is considered ‘luxury’ when many farmers need those vehicles for their employment.

Senator Bernardi has told Leon Byner on Adelaide's FiveAA radio, scrapping the tax would save motorists around $700 million a year and would undoubtedly save lives because Australia's vehicle fleet would be more roadworthy.

Yet for 10 years Liberal, National and now government MPs - including former Nationals leader and deputy Prime Minister Barnaby Joyce - have voiced passionate support for axing the car tax, but nothing has happened during the life of the government.

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