MEDIA RELEASE 18 August 2008
Australia's biggest online car buying service says that the Government has got it wrong on luxury car tax threshold
Private Fleet, Australia's biggest online car buying service says that the
current luxury car tax threshold is too low and should be increased because it
affects approximately 24% of current new car sales.
According to Private Fleet's Marketing Manager Tim Marsh the luxury car tax is
being applied to cars that definitely aren't luxurious like basic four wheel
drives used in the rural sector.
"The current luxury car tax was introduced on 1 July 2000 at a threshold of
$55,575 with 25% tax payable on every dollar over the threshold. That was eight
years ago. We've done our calculations and believe the threshold should be
increased to $71,952 to be in line with official CPI increases since that time.
We'd also advocate that the new tax rate of 33% would kick in for vehicles over
$125k," said Marsh.
"Since the budget announcement we've noticed a number of negative effects.
Firstly, it has imposed penalties on those who have ordered vehicles before the
tax rise was announced who are waiting for production on their new vehicle and
will now be slugged with the additional tax burden. We estimate this will affect
more than 1,000 Australians with vehicles on order.
"Secondly, enquiries and sales of vehicles subject to the luxury car tax have
declined markedly by over 40% as a percentage of our total enquiries around the
country since 1 July," he added.
"We also think the government should think about creating a special exception
for vehicles used in the running of regional and rural businesses so that the
tax remains at 25% for those qualifying for that status similar to the reduced
registration cost in NSW if you have country residence.
"At Private Fleet we work with our clients to minimise the amount of luxury car
tax they are liable to pay but unfortunately we can't avoid it altogether," said
Marsh.
Private Fleet is an Australian owned and operated national online car buying
service. Private Fleet customers are individuals and small businesses who ask
Private Fleet to provide independent advice on their vehicle selection,
competitive pricing and a high standard of service. Private Fleet then invites
multiple dealers from all over Australia to bid for the business.
Private Fleet is affiliated with over 600 dealers across Australia and buys more
cars than any other buying service in Australia. This gives Private Fleet
significant buying power and saves customers money on new car purchases. On
average, Private Fleet can save the customer up to 15 per cent off the dealer
price.
Private Fleet can be contacted on 1300 303 181 or by visiting
www.privatefleet.com.au
Released for Private Fleet by Dennis Rutzou Public Relations (www.drpr.com.au)
For further information please call Joanna Gitsham or Nicola Rutzou on (02) 9413
4244.
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