Public Relations Company

Public Relations Company  
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

Released for Private Fleet by Dennis Rutzou Public Relations (
For further information please call Joanna Gitsham or Nicola Rutzou on (02) 9413 4244.

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