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Just Toyota •Toyota slams luxury-car tax
Page 1 of 1

Toyota slams luxury-car tax

Posted: October 15th, 2015, 5:14 pm
by CarModder
Toyota slams luxury-car tax

Jul 2, 2014 By Toyota Australia.




** Full price reductions passed to motorists **

Automotive industry leader Toyota today urged federal politicians to abolish the luxury-car tax, describing the impost as discriminatory and inefficient.

The call came as Toyota passed on the full cost savings to consumers resulting from this week's CPI-related increase in the threshold at which vehicles are subject to the tax.

The Australian Tax Office has confirmed the threshold has risen to $61,884 from July 1 - an increase of $1,568 on the previous $60,316 trigger.

As a result, the recommended retail prices of 19 Toyota LandCruiser 200, LandCruiser Prado, Kluger and Tarago vehicles have fallen - 17 of them by the maximum of $470*.

Toyota's executive director sales and marketing Tony Cramb said the reduction provided some relief for new-car owners.

But Mr Cramb said the luxury-car tax should be abolished - especially as there was no equivalent tax on items such as antiques, yachts, motor boats and jewellery.

"Australian motorists are already heavily taxed with GST, stamp duty and registration fees when buying a new car, as well as road tolls and a hefty tax on fuel," Mr Cramb said.

"New-vehicle buyers should not be singled out to pay the additional burden of a so-called luxury tax - especially one that is so inefficient and poorly designed," he said.

"The punitive tax rate was originally 25 per cent on the value of the vehicle above the threshold, but was increased to 33 per cent in 2008.

"Application of the tax does not recognise that many vehicles in this category offer important safety, environmental and theft-reduction benefits. The tax also results in significant compliance costs that are borne by our dealers.

"Toyota's opposition to this tax and our call for its repeal is consistent with the recommendations of the Henry tax review," Mr Cramb said.

The luxury-car tax threshold remains at $75,375 for vehicles with an official combined fuel consumption rating that does not exceed 7.0 litres/100km.


PRICE CHANGES, EFFECTIVE JULY 1*


KLUGER

<tbody>
<tr>
MODEL
NEW PRICE
REDUCTION

<tr>
2WD Grande auto
$63,520
$470

<tr>
AWD Grande auto
$67,520
$470

</tbody>




LANDCRUISER PRADO

<tbody>
<tr>
MODEL
NEW PRICE
REDUCTION

<tr>
GX Auto T/D 7 seat
$60,988
$202

<tr>
GXL Manual T/D
$61,219
$271

<tr>
GXL Auto petrol
$62,720
$470

<tr>
GXL Auto T/D
$63,720
$470

<tr>
VX Auto petrol
$77,520
$470

<tr>
VX Auto T/D
$78,520
$470

<tr>
Kakadu Auto petrol
$91,120
$470

<tr>
Kakadu Auto T/D
$92,120
$470

</tbody>




LANDCRUISER 200

<tbody>
<tr>
MODEL
NEW PRICE
REDUCTION

<tr>
GX Auto T/D
$78,165
$470

<tr>
GXL Auto petrol
$84,165
$470

<tr>
GXL Auto T/D
$89,165
$470

<tr>
VX Auto petrol
$95,165
$470

<tr>
VX Auto T/D
$100,165
$470

<tr>
Sahara Auto petrol
$114,165
$470

<tr>
Sahara Auto T/D
$119,165
$470

</tbody>




TARAGO

<tbody>
<tr>
MODEL
NEW PRICE
REDUCTION

<tr>
Ultima Auto V6
$70,665
$470

</tbody>


* Recommended retail price is provided for media purposes only and does not include statutory charges or other on-road costs.