Luxury car tax

[Utemad]

Budget shock for luxury car buyers

May 10, 2008 - 10:53PM

The federal government will increase the tax on luxury cars priced over $57,000 in the first budget tax increase in more than a decade.
The tax increase, to be introduced in Treasurer Wayne Swan's first budget, will affect the sales of about 105,000 cars per year, according to newspaper reports.
The tax will increase from 25 per cent to 33 per cent and is mainly aimed at high-end imported vehicles.
Ninety per cent of luxury cars are imported. The tax rise will also impact on locally produced vehicles such as the Holden Caprice, Holden Statesman, Ford's Falcon G6E and the Territory Ghia.
Media reports have revealed that the tax will apply to the GST-exclusive value of cars that cost more than $57,123.
Mr Swan said people on six figure salaries were "doing pretty well in Australia".
"It's abundantly clear that there are some people who are receiving government benefits who are on very, very high incomes, who don't need them," Mr Swan told News Ltd.
"And we ought to have a discussion in Australia about whether we can continue to afford that."
AAP
Budget shock for luxury car buyers - National - BrisbaneTimes (http://www.brisbanetimes.com.au/news/national/budget-shock-for-luxury-car-buyers/2008/05/10/1210131340886.html)

[WhiteD3]

Yep, welcome to the worker's utopia comrade! Where we take from the "rich" and give to the "poor".

[harry]

does that mean they will restart the valiant factory, and we will all have to drive dunnydores, ap5's or falcons

[procrastination inc]

swings and round abouts fellas

[McDisco]

Doesnt matter much to me! Cant afford a luxury car anyway! :(

Angus

[Hymie]

Luckily a new 130 defender sneaks in by a few grand.

[vnx205]

$57,123 excluding GST means almost $63,000 doesn't it?

Ok, it's not going to worry me either.

In fact it's not likely to affect me until it is applied to second hand vehicles below about $10 to $15,000. :p

[RonMcGr]

Yep!
That is Krudd trying to turn Australia into a socialist Country.
Had to happen... It will get worse, as well!
Vote in a clown, expect a circus!

[procrastination inc]

Australia IS socialist, has been for a long time.

Medicare, federally funds for roads, schools, hospitals are all socialist behaviours.

You want to revoke that and revert to user pays for everything?

This increase is one attempt of many to pull some steam out of the economy. Interest rate hikes will hit the bottom and middle earners pretty hard, the top earners won't feel that so much (unless they are foolish enough to be over extended). This sort of thing provides balance

[29dinosaur]

Yep!

Vote in a clown, expect a circus!
:lol2::lol2::lol2::arms::arms:

So what gem do you have for Julia?

[p38arover]

That luxury car figure hasn't been lifted for a while, has it? A lot of cars will be creeping up towards it - especially 4WDs.

[CaverD3]

Those who voted for Kevin should have read the fine print.




KEVIN 07










Australian LABOUR Party

Conservative economic policy; my ar#se! :mad:

[RonMcGr]

:lol2::lol2::lol2::arms::arms:

So what gem do you have for Julia?

Julia who???? :D

[procrastination inc]

Australian LABOUR Party

there is no such thing....

Australian LABOUR Party - Google Search (http://www.google.com.au/search?um=1&hl=en&cr=countryAU&safe=active&q=Australian+LABOUR+Party&btnmeta%3Dsearch%3Dsearch=Search+the+Web)

[RonMcGr]

Australian LABOUR Party

there is no such thing....

Australian LABOUR Party - Google Search (http://www.google.com.au/search?um=1&hl=en&cr=countryAU&safe=active&q=Australian+LABOUR+Party&btnmeta%3Dsearch%3Dsearch=Search+the+Web)

True, they took the YOU out of it :D
It's all them, them them or in their case, Me,me,me.
QLD Labor has the best, all of them have their snout in the money trough!!

[procrastination inc]

Conservative economic policy; my ar#se!

?? what is upping taxes to reduce spending to minimise inflation if it isn't conservative economic policy?

If you are going to play the anti socialist / economic rationalist card then you at least need to be rational, otherwise you'll look like a goose

[procrastination inc]

QLD Labor has the best, all of them have their snout in the money trough!!


*SNORT!* how quickly we forget Joh...

[Ralph1Malph]

Damn those luxury car drivers!:mad:
See what they've done:mad:

By working hard or investing wisely and prospering, they have turned the rest of us into paupers.:eek:

Luckily, as a Soldier on the public purse, I can suckle from the public teat and never reach the dizzy heights of being self sufficient or independently wealthy:(

Anyway, why would I want to, the popularly elected government would tax everything nice I wanted to purchase:o Can you still buy Trabants?:D

Wonder how Lexus or Mercedes sales folk from working families feel now? I wonder if this will result in layoffs from showrooms? Anyone here a salesman or stealer?

Still, I must always remember that this is the will of the people - so sayeth the ballot box!

Rant over:p:p:p:p

Ralph

[procrastination inc]

Anyway, why would I want to, the popularly elected government would tax everything nice I wanted to purchase...


Can you say GST?

Australia's stable political climate has generated two leading parties that are almost indistinguishable. Moaning about details in application of what are fundamentally the same principles is pretty ridiculous.

[RonMcGr]

Australia's stable political climate has generated two leading parties that are almost indistinguishable.

I see, so that is how the labor faithful see it. :eek:
No wonder so many idiots voted in Krudd :mad:

[procrastination inc]

we can make this personal if you like Ron, but I personally don't see the value in it.

Ideological stances are necessarily divorced from reality, whatever their leaning.

[RonMcGr]

Ideological stances are necessarily divorced from reality, whatever their leaning.

Exactly and i will leave it at that :mad:

[WhiteD3]

Whacking up the luxury car tax does nothing to slow the economy, but it plays well with the ACTU's downtrodden masses.

If they were serious about slowing spending they'd put a luxury tax on imported goods like flat screen TVs and alike, make it illegal to offer "don't pay anything for 4 years" schemes that every man and his dog seem to advertise these days, and stop the banks offering continuous credit limit increases on their cards.

It's not the rich or even the well-off that have a problem; its the vast majority of wages people spending beyond their means and not saving anything.

[clean32]

Yep, welcome to the worker's utopia comrade! We're we take for the "rich" and give to the "poor".

Having just relocated from the workers Paradise, with its 13% GST 6% income tax, average life span for a guy is 52, average income is 700 AUD a month, milk like we drink is 2.2 AUD a litre, where you que for 3-6 hours to see a doctor. Where you can lay in hospital for 3 days before you see a doctor. Where 1 in 470 WILL die a year on a road accident, more likely of your pedestrian. and your kids have a 10% chance of dieing before they tun 10 years old,
You guys Have NOTHING to complain about, ZERRO NADA

[procrastination inc]

well, clean, you just put things in perspective I think...:eek:

[procrastination inc]

If they were serious about slowing spending they'd put a luxury tax on imported goods like flat screen TVs and alike, make it illegal to offer "don't pay anything for 4 years" schemes that every man and his dog seem to advertise these days, and stop the banks offering continuous credit limit increases on their cards.

It's not the rich or even the well-off that have a problem; its the vast majority of wages people spending beyond their means and not saving anything.....


Sounds to me like there is a problem with the whole concept of a free market economy. Fixed prices from a centralised administration could be a fix...(not)

[tony]

Reading the posts above you would think

1 we have a choice

2 our elected "establishment" is there to ensure our continued wellbeing.

4 Life will go on as we know it for ever..

Wake up people and smell the roses, it doesn't matter what party is in power they are only there to look after the corporations that put them there.

99% of "ordinary" people don't care, they just look at what's going into their pocket at the end of the week, they don't seem to realise that day by day, year by year, the "Establishment" is bleeding their freedoms away,taxing them onto the poverty line (or below).

I know many of you complain about the price of fuel and then say well there's not much the .Gov can do the price is regulated from Singapore -well think on this, we pay 38c in every litre to the .Gov revenue then we pay 10% GST on the total bill, so in 1 visit to the fuel pump .Gov are taxing you twice.

Western society is in decline the .Govs are just trying to hold back the inevitable.

Tony

[Ralph1Malph]

Clean,

We have nothing to complain about because Procrast, RonMc, WhiteD3 and all the others who contributed to the post are able to do so!
Discussing micro policy means that the macro is stable. We are able to voice our views freely and usually without any invective.
The reason other countries are not as stable or prosperous is because they do not have the same values or value others passionately enough.

So I guess you are right!:D:D but I still hate different taxes between the classes

Cheers
Ralph

[p38arover]

Having just relocated from the workers Paradise, with its 13% GST 6% income tax, average life span for a guy is 52, average income is 700 AUD a month, milk like we drink is 2.2 AUD a litre, where you que for 3-6 hours to see a doctor. Where you can lay in hospital for 3 days before you see a doctor. Where 1 in 470 WILL die a year on a road accident, more likely of your pedestrian. and your kids have a 10% chance of dieing before they tun 10 years old,
You guys Have NOTHING to complain about, ZERRO NADA

Northern Territory?

[RonMcGr]

Having just relocated from the workers Paradise, with its 13% GST 6% income tax, average life span for a guy is 52, average income is 700 AUD a month, milk like we drink is 2.2 AUD a litre, where you que for 3-6 hours to see a doctor. Where you can lay in hospital for 3 days before you see a doctor. Where 1 in 470 WILL die a year on a road accident, more likely of your pedestrian. and your kids have a 10% chance of dieing before they tun 10 years old,
You guys Have NOTHING to complain about, ZERRO NADA

What was it like when the reds ruled?

[WhiteD3]

It's not that I have any issue with tighter monetary policy or the need for short term pain, long term gain, etc.

My point was that upping the luxury car tax is just populist politics and will achieve nothing in slowing spending. It plays well with the great majority who have no interest in this stuff and would rather watch BB than the news, but let's face it; increasing the cost of a car by 8% of the value of said car above $57k will stop no one from buy said car.

ie a D3 SE V6 is $64k drive away now and will be $64,560 come July. The $560 being 8% of the 7k above $57k.

The overheated spending issue is created by those of us spending beyond our means, rich, poor or in between.

[scarry]

whats new?
the more you earn the more they take off you:mad::mad::mad::mad:

[procrastination inc]

nice analysis whiteD3

Political stunt. They need some way to look different to the previous feral garment

[spudboy]

Clean32 - From where have you recently returned???

[VladTepes]

Ironically this budget will be the first time a Labor government has been attacked over fiscal policy by a liberal opposition... from the left !

I find that terribly ironic.


It's a bastard about the tax though as I think it will affect ALL the models in the LR range (although not necc all specs) (the new Defender SVX is above the threshold too).

I wouldn;t mind owning a 'new' Defender one day and there's no way I'd ever be likely to fall into the 'six figure income' bracket being spruiked about.

I think it will mean fewer top end local cars will be sold (bad for those companies wih subsequent flow on effects) and won't help sales of LR either.

Of course this won't worry LR at all. They'll be chuffed that they are classed as "luxury cars" because that's what they've been pitching at for the last few years, and not selling cars has never really seemed to worry them !

[87County]

Well done Wayne - he hit the nail on the head when he pointed out that the buyers of luxury vehicles can well afford to pay a (very) little extra $s

[ak]

It's a bastard about the tax though as I think it will affect ALL the models in the LR range (although not necc all specs) (the new Defender SVX is above the threshold too).



Of course this won't worry LR at all. They'll be chuffed that they are classed as "luxury cars" because that's what they've been pitching at for the last few years, and not selling cars has never really seemed to worry them !

Exactly

[mcrover]

It's not that I have any issue with tighter monetary policy or the need for short term pain, long term gain, etc.

My point was that upping the luxury car tax is just populist politics and will achieve nothing in slowing spending. It plays well with the great majority who have no interest in this stuff and would rather watch BB than the news, but let's face it; increasing the cost of a car by 8% of the value of said car above $57k will stop no one from buy said car.

ie a D3 SE V6 is $64k drive away now and will be $64,560 come July. The $560 being 8% of the 7k above $57k.

The overheated spending issue is created by those of us spending beyond our means, rich, poor or in between.

That was what I was thinking.

If your on $100k per year, you wont even notice the $560 in loose change that the gov will take when you buy your new D3.....rediculas even bothering to coment.

If you really want to control the economy do as suggested before and stop providing credit to those that cant afford it.:o

We have worked extremely hard to get what we have with as little credit as possible so now that interest rates are going up, we wont go broke, but most people around here dont look that far ahead, they look at what they can borrow now and just expect that if intrest rates go up ACA will save them.:eek:

The instrest rates are set by the amount of credit that we are all in so if you dont like high rates then it is up to everyone to not go into lots of credit, it's the simple way of looking at it but it's basically how it is.

I dont know what luxury cars have to do with it but I suppose it will look good to the masses of poorer people (like us) that they are attacking the rich buggers for a change.

Im very sceptical about the gov and the GST on fuel after the excise as well.

Back when GST came in, ULP was .90c to .95c per litre at the servo I was working at in the country.

that is approx 9c in GST with what was then I think about 28c/ltr excise, now at $1.80c odd per ltr is 18c/ltr + 38c excise meaning they are making twice as much as before, why would they want to control that or do anything about it.

We are being ripped off at the pump but the Lux car tax is just a stunt to get the heat off.

[WhiteD3]

Well done Wayne - he hit the nail on the head when he pointed out that the buyers of luxury vehicles can well afford to pay a (very) little extra $s

Fairness? So I work like a dog for years doing a 60+ hour week, do reasonably well (although I'm still a salary man), pay the top rate of income tax, the Medicare and super surcharge for all those years. Pay into my super so I won't be on the pension when I retire...........and then have to pay again, just because I'm spending the money I earned which I've already been taxed on?

Yep, sounds fair:confused:

It's political grandstanding only and he know the majority of people this effects won't vote for him anyway, and the $$ in question are meaningless to both the govt in revenue and those buying the cars.

Frankly I think Wayne and Kev have bigger things to worry about.

[rangieman]

Reading the posts above you would think

1 we have a choice

2 our elected "establishment" is there to ensure our continued wellbeing.

4 Life will go on as we know it for ever..

Wake up people and smell the roses, it doesn't matter what party is in power they are only there to look after the corporations that put them there.

99% of "ordinary" people don't care, they just look at what's going into their pocket at the end of the week, they don't seem to realise that day by day, year by year, the "Establishment" is bleeding their freedoms away,taxing them onto the poverty line (or below).

I know many of you complain about the price of fuel and then say well there's not much the .Gov can do the price is regulated from Singapore -well think on this, we pay 38c in every litre to the .Gov revenue then we pay 10% GST on the total bill, so in 1 visit to the fuel pump .Gov are taxing you twice.

Western society is in decline the .Govs are just trying to hold back the inevitable.

Tony
Yep tony your on the money again :D, It doesnt matter who is in goverment your gunna get screwed one way or another:eek2: , Some people need to take their Blinkers off;)

[mcrover]

Yep tony your on the money again :D, It doesnt matter who is in goverment your gunna get screwed one way or another:eek2: , Some people need to take their Blinkers off;)

Yep no matter who is in gov, that is their main objective.....to separate the voters of as much money as they can justify :(

The cycle will work it's way through again and it will all go full circle and all that crap :p

[Ralph1Malph]

Well done Wayne - he hit the nail on the head when he pointed out that the buyers of luxury vehicles can well afford to pay a (very) little extra $s

Ahh yes, thats what I thought.
Doesn't really encourage me to be rich tho' does it!
Tell me again why it is a crime to be wealthy? I certainly am not, but if I ever do make it, I would like to know I pay the same amount of tax pro rata as the rest of us.
I was a great supporter of the GST, and still am, spend a lot, tax a lot. Spend a little, tax a little, thats about as socialist as it gets in my book!

BTW, it broke my heart to learn that I had paid well short of what the vendors selling my new home were asking. Apparently, they were doing alright as Howard battlers but decided to sell when told they were really a 'working family' :D.

Does anybody else feel different now? I always considered myself a 'battler' but now don't feel any different as a 'working family'....go figure.:eek:

Cheers Ralph

[slug_burner]

whats new?
the more you earn the more they take off you:mad::mad::mad::mad:

It would be interesting to bring some facts into this debate like the gem above. PAYE are carrying their share of the tax burden. In amongst the PAYE what Scarry says is undeniable but does it still apply to the cash job, the deductible everything portion of society:twisted:?

[mcrover]

It would be interesting to bring some facts into this debate like the gem above. PAYE are carrying their share of the tax burden. In amongst the PAYE what Scarry says is undeniable but does it still apply to the cash job, the deductible everything portion of society:twisted:?


Do you want to justify that comment with what your bring home salary is?

Im not saying that it is right what they do but those that do it normally wouldnt earn a year what the high end of town spend on their lunch a year and that is if they work their but off.

And then the gov says they are the tax cheats.

Im sure there are plenty that raught the tax free thresholds etc but they are normally the ones with a disposable income that allows them to afford such things as dodgey accountants and off shore accounts etc.

Dont get me wrong but I work bloody hard, I always have and Im happy to say that because of such work I have 2 cars a house 2 dogs etc and generally a happy life but there was times in my past where I had to work several cash jobs just to make the mortgage payments for the month, does that make me a tax cheat and when I had mates on the doll in the 80's due to being stuck in a country town with no work for 8 months of the year picking up what ever cash jobs they could does that make them a burdon on the country, get some perspective, if you have it and you spend it then you should be called to come to the party and help out.

Im not ever going to be on $100k per year + and if I were a lot of it would go to help others less fortunate than I but some people recon that just isnt enough and they need more and more so they can push house prices/rental prices up making the gap bigger between us and them.

[djam1]

I think this covers it



THE SQUIRREL & THE GRASSHOPPER REST OF THE WORLD VERSION:

The squirrel works hard in the withering heat all summer long, building and improving his house and laying up supplies for the winter. The Grasshopper thinks he's a fool, and laughs and dances and plays the Summer away. Come winter, the squirrel is warm and well fed.
The shivering grasshopper has no food or shelter, so he dies out in the cold.
THE END


THE AUSTRALIAN VERSION:

The squirrel works hard in the withering heat all summer long, building his house and laying up supplies for the winter. The grasshopper thinks he's a fool, and laughs and dances and plays the summer away.
Come winter, the squirrel is warm and well fed.

A social worker finds the shivering grasshopper, calls a press conference and demands to know why the squirrel should be allowed to be warm and well fed while others less fortunate, like the grasshopper, are cold and starving.

The ABC shows up to provide live coverage of the shivering grasshopper; with cuts to a video of the squirrel in his comfortable warm home with a table laden with food.

The Australian press informs people that they should be ashamed that in a country of such wealth, this poor grasshopper is allowed to suffer so while others have plenty.

The Labour Party, Greenpeace, Animal Rights and The Grasshopper Council of Australia demonstrate in front of the squirrel's house. The ABC, interrupting a cultural festival special from St Kilda with breaking news, broadcasts a multi cultural choir singing "We Shall Overcome".

Bill Shorten rants in an interview with Laurie Oakes that the squirrel has gotten rich off the backs of grasshoppers, and calls for an immediate tax hike on the squirrel to make him pay his "fair share" and increases the charge for squirrels to enter Melbourne city centre.

In response to pressure from the media, the Government drafts the Economic Equity and Grasshopper Anti Discrimination Act, retroactive to the beginning of the summer. The squirrel's taxes are reassessed. He is taken to court and fined for failing to hire grasshoppers as builders, for the work he was doing on his home and an additional fine for contempt when he told the court the grasshopper did not want to work.

The grasshopper is provided with a council house, financial aid to furnish it and an account with a local taxi firm to ensure he can be socially mobile. The squirrel's food is seized and re distributed to the more needy members of society, in this case the grasshopper.

Without enough money to buy more food, to pay the fine and his newly imposed retroactive taxes, the squirrel has to downsize and start building a new home. The local authority takes over his old home and utilises it as a temporary home for asylum seeking cats who had hijacked a plane to get to Australia as they had to share their country of origin with mice. On arrival they tried to blow up the airport because of Australians apparent love of dogs.

The cats had been arrested for the international offence of hijacking and attempted bombing but were immediately released because the police fed them pilchards instead of salmon whilst in custody. Initial moves to then return them to their own country were abandoned because it was feared they would face death by the mice. The cats devise and start a scam to obtain money from peoples credit cards.

A 60 Minutes special shows the grasshopper finishing up the last of the squirrel's food, though Spring is still months away, while the council house he is in, crumbles around him because he hasn't bothered to maintain the house. He is shown to be taking drugs. Inadequate government funding is blamed for the grasshopper's drug "Illness".

The cats seek recompense in the Australian courts for their treatment since arrival in Australia.

The grasshopper gets arrested for stabbing an old dog during a burglary to get money for his drugs habit. He is imprisoned but released immediately because he has been in custody for a few weeks. He is placed in the care of the probation service to monitor and supervise him. Within a few weeks he has killed a guinea pig in a botched robbery.

A commission of enquiry, that will eventually cost $10,000,000 and state the obvious, is set up. Additional money is put into funding a drug rehabilitation scheme for grasshoppers and legal aid for lawyers representing asylum seekers is increased. The asylum seeking cats are praised by the government for enriching Australia's multicultural diversity and dogs are criticised by the government for failing to befriend the cats.

The grasshopper dies of a drug overdose. The usual sections of the press blame it on the obvious failure of government to address the root causes of despair arising from social inequity and his traumatic experience of prison. They call for the resignation of a minister.

The cats are paid a million dollars each because their rights were infringed when the government failed to inform them there were mice in Australia.

The squirrel, the dogs and the victims of the hijacking, the bombing, the burglaries and robberies have to pay an additional percentage on their credit cards to cover losses, their taxes are increased to pay for law and order and they are told that they will have to work beyond 65 because of a shortfall in government funds.
THE END

[Debacle]

I see, so that is how the labor faithful see it. :eek:
No wonder so many idiots voted in Krudd :mad:

Dont think I appreciate being called an idiot Ron

Were the swinging voters idiots when they voted liberal or did they become idiots when they voted opposite to your beliefs

[numpty]

Dont think I appreciate being called an idiot Ron

Were the swinging voters idiots when they voted liberal or did they become idiots when they voted opposite to your beliefs

I've tried that one before John.;)

[procrastination inc]

yes, welfare culture is a thing to be despised and ridiculed. But don't throw out the baby with the bath water, some people legitimately need help.

Or would you rather we just top off the old, the infirm and the plain unlucky?

[Chilly]

Like it Djam1.

reminds me very much of the UK but far worse there.

Whilst on this luxury tax....has anyone thought that it might not happen. Yes i know that papers etc are all discussing it....but....perhaps whilst all the noise is being made about this the thing what is going to really P people off tomorrow when announced will be overlooked.

In other words a smokescreen...seen that before too.

Also I had been looking at a new Disco and had to say I was surprised when told about this LUXURY tax. I am far far far away from earning $100,000. (I Work in a factory online working shifts). So by saving and looking after my money I must now pay a luxury tax increase aimed at the rich.....ho hmm!!

[WhiteD3]

Sorry, got to repeat this line from the ABC news tonight re this topic.


"There's folks to stroked and folks to be choked" said the ABC reporter.

:lol2::lol2::lol2::lol2::lol2:

How true.

[vnx205]

...... ........, but let's face it; increasing the cost of a car by 8% of the value of said car above $57k will stop no one from buy said car.

ie a D3 SE V6 is $64k drive away now and will be $64,560 come July. The $560 being 8% of the 7k above $57k.
..... ........
I suppose your figures are right.

In which case, what on earth is all the fuss about?

$560. That is less than a 1% increase in the total price. A lot of people buying a D3 would add that much in optional extras without batting an eyelid.

How many weeks would it take to spend that much on fuel?

How many weeks (or is that days, hours or minutes) would it take for a new D3 to depreciate by that much?

I just can't see how $560 is an unbearable imposition. I know, it's because it's a tax that you hate it, but let's keep some sense of proportion.

[WhiteD3]

I just can't see how $560 is an unbearable imposition.

That's the point, it's not. So why do it? It plays well with the press and (so they think) the majority of voters.

So it's not about economic policy and being responsible, its about politics.

[GregTD5]

The tax increase might only be $580 dollars on a D3, but a D3 as a luxury car is already taxed at 25%. Now it will get an increase of an extra 8% on top.

Greg

[dmdigital]

Hey guys you've all missed the obvious...

The new Land Cruiser 200 just became even less affordable :o

Given it already costs more than a D3, this may mean fewer of them on the road :)

[Tombie]

Hey guys you've all missed the obvious...

The new Land Cruiser 200 just became even less affordable :o

Given it already costs more than a D3, this may mean fewer of them on the road :)

Now thats a pearler... One for the books :clap2::BigThumb::MileStone::Rolling:

[Captain_Rightfoot]

That luxury car figure hasn't been lifted for a while, has it? A lot of cars will be creeping up towards it - especially 4WDs.

What was the car tax? Still 63k inc gst buys a lot of car...

[Lotz-A-Landies]

... but let's face it; increasing the cost of a car by 8% of the value of said car above $57k will stop no one from buy said car.

ie a D3 SE V6 is $64k drive away now and will be $64,560 come July. The $560 being 8% of the 7k above $57k. ...If the average tax cost increase were only $600.00 per car over the 105K cars supposedly impacted by this change, the government coffers will benefit to the tune of $63 million.

Pretty reasonable for the government and keeps the bleeding hearts contented.

All I can say is if it slows down the rate of new BMWs turning up on the streets of Sydney I'll be happy.

Diana

[stevo68]

I agree with the sentiment re: the increase in luxury tax. Taking our beloved LR's into the equation, I would never, ever, buy one new again...unless someone else was paying for it...ie a company car...not out of my own back pocket. The depreciation on these is horrific. I went against my own ideal of buying demo/ 2nd hand and bought my D3 new. Bought for $110k new...sold for $58k 2 yrs later :mad:. Ultimately cars are a liability..a depreciating asset, much better to let someone else wear the luxury tax and depreciation and pick up a "townie" with low to reasonable km's. Even my old man who has bought new bentleys, mercs etc and dropped well over $100k + on resale will not buy new now. That difference in depreciation can be better well used to increase ones asset position.

Regards

Stevo

[Lucy]

*"Taxing the People" Explaining Taxation...*

Sometimes politicians, journalists and the liberal left explain; "it's
just a tax cut for the rich!" And it is just accepted as fact. But
what does that really mean? Just in case you are not completely clear
on this issue, I hope the following will help. Please read it
carefully. Let's put tax cuts in terms everyone can understand.
Suppose every day 10 men go out for dinner and the bill for all 10
comes to $100. If they paid the bill the way we pay our taxes, it would go
something like this:
* the first four men (the poorest) would pay nothing.
* the fifth would pay $1
* the six would pay $3
* the seventh would pay $7
* the eighth would pay $12
* the ninth would pay $18
* the tenth(the richest) would pay $59
So, that's what they decided to do. The 10 men ate dinner in the
restaurant every day and seemed quite happy with the arrangement,
until one day, the owner threw them a curve. "Since you are all such good
customers," he said, "I'm going to reduce the cost of your daily meal by
$20."
Following the reduction, dinner for the ten would now cost just $80.
The group still wanted to pay the bill the way we pay our taxes so the
first four men were unaffected. They would still eat for free. What
about the other six men - the paying customers? How could they divide
the $20 windfall so that everyone would get his "fair share?" They
realised that $20 divided by six is $3.33.but if they subtracted that
from everybody share, then the fifth man and the sixth man would each
end up being paid to eat their meal. So, the restaurant owner
suggested:
* the fifth man, like the first four, now paid nothing (100% savings)
* the sixth now paid $2 instead of $3 (33% savings)
* the seventh now paid $5 instead of $7 (28% savings)
* the eighth now paid $9 instead of $12 (25% savings)
* the ninth now paid $14 instead of $18 (22% savings)
* the tenth now paid $49 instead of $59 (16% savings... the
least proportion of saving).
Each of the six paying customers was better off than before and the
first four continued to eat for free:
But once outside the restaurant, the men began to compare their savings:
"I only got one dollar out of $20," declared the sixth man. He pointed
to the 10th man, "but he got $10!"
"Yeah, that's right," exclaimed the fifth man. "I only saved $1, too.
It's unfair that he got 10 times more than me!"
"That's true!!" shouted the seventh man. "Why should he get $10 back
when I got only two? The wealthy get all the breaks!"
"Wait a minute," yelled the first four men in unison. "We didn't get
anything at all. The system exploits the poor!"
As a consequence, the first nine men surrounded the 10th and beat him
up. The next night the 10th man didn't show up for dinner, so the nine
sat down and ate without him. But when it came time to pay the bill,
they discovered something important. They didn't have enough money
among all of them for even half of the bill!
And that, boys and girls, journalists and college professors, is how our
tax system works. The people who pay the highest taxes get the most
benefit from a tax reduction. Tax them too much, attack them for being
wealthy, and they just may not show up any more. In fact, they might
start eating overseas where the atmosphere is somewhat friendlier

[RonMcGr]

Car tax hike will 'put lives at risk'

Posted 33 minutes ago

The Automobile Association says car makers are likely to scrap some life-saving features in their vehicles to try to avoid the new tax on luxury cars.

The Federal Government will increase the tax on cars worth $57,000 and above in tomorrow night's Budget.

The Automobile Association's director of research and policy John Metcalfe disagrees with the move.

He says it will see manufacturers take out some of the safest aspects of their cars to keep the price below the tax threshold.

"Electronic stability control in particular, which we know reduces single vehicle crashes by about 50 per cent, curtain air bags which reduce life threatening injury are also a feature of the upper models," he said.

"So what's going to happen is to keep your vehicle under the threshold you're going to avoid putting in these life-saving technologies."

Budget inked

Meanwhile Treasurer Wayne Swan has reiterated his statements that tomorrow night's Budget will contain some tough measures to make sure Australia's economy remains prosperous.

All of the thousands of pages of Budget figures have now been finalsied and they have gone to print.

"Spending has been out of control in recent times, it falls to this Government to rein in irresponsible spending," he said.

Speaking on MacQuarie Radio the Opposition's treasury spokesman Malcolm Turnbull questioned Labor's promise to cut public spending with one hand and give tax cuts with the other.

"This is my concern, with the Treasurer I really wonder whether he knows what he is doing," he said.

The Greens have urged the Government to make sure high income earners bear the brunt of any cuts to public spending.

~~~~~~~~~~~~~~~~~~~~~~~
Before the "attackers, attack" it is FROM the news FFS..

[rangieman]

Car tax hike will 'put lives at risk'

Posted 33 minutes ago

The Automobile Association says car makers are likely to scrap some life-saving features in their vehicles to try to avoid the new tax on luxury cars.

The Federal Government will increase the tax on cars worth $57,000 and above in tomorrow night's Budget.

The Automobile Association's director of research and policy John Metcalfe disagrees with the move.

He says it will see manufacturers take out some of the safest aspects of their cars to keep the price below the tax threshold.

"Electronic stability control in particular, which we know reduces single vehicle crashes by about 50 per cent, curtain air bags which reduce life threatening injury are also a feature of the upper models," he said.

"So what's going to happen is to keep your vehicle under the threshold you're going to avoid putting in these life-saving technologies."

Budget inked

Meanwhile Treasurer Wayne Swan has reiterated his statements that tomorrow night's Budget will contain some tough measures to make sure Australia's economy remains prosperous.

All of the thousands of pages of Budget figures have now been finalsied and they have gone to print.

"Spending has been out of control in recent times, it falls to this Government to rein in irresponsible spending," he said.

Speaking on MacQuarie Radio the Opposition's treasury spokesman Malcolm Turnbull questioned Labor's promise to cut public spending with one hand and give tax cuts with the other.

"This is my concern, with the Treasurer I really wonder whether he knows what he is doing," he said.

The Greens have urged the Government to make sure high income earners bear the brunt of any cuts to public spending.

~~~~~~~~~~~~~~~~~~~~~~~
Before the "attackers, attack" it is FROM the news FFS..
Wow another scare tactic ,IF YOUR WORRIED ABOUT ATTACKS DONT QUOTE THE BULL , Whats wrong with buying a cheaper car with all the safety extras that comes in under the tax freshhold wake up and get a life , all these scare tactics , does that crystal ball say when the world is going to end:Rolling:

[RonMcGr]

Wow another scare tactic ,IF YOUR WORRIED ABOUT ATTACKS DONT QUOTE THE BULL , Whats wrong with buying a cheaper car with all the safety extras that comes in under the tax freshhold wake up and get a life , all these scare tactics , does that crystal ball say when the world is going to end:Rolling:

WOW!! Tell it to the news, I'm not interested!
Sheesh there is always one, no doubt I'll get another...

[RonMcGr]

PM hits brakes on luxury car tax | The Australian (http://www.theaustralian.news.com.au/story/0,25197,23770644-5013946,00.html)

THE Rudd Government is prepared to review the $555 million luxury car tax only two weeks after it was unveiled in the budget and even before the new tax laws are introduced into parliament.

The Government is to refer the luxury car tax to the review of the tax system being conducted by Treasury secretary Ken Henry, after calls from the automotive industry and the Government's declaration that "taxes on taxes" were an anomaly.

Wayne Swan increased the luxury car tax, paid on the portion of a car's sale price over $57,123, from 25 per cent to 33 per cent for vehicles delivered after July 1. The tax is calculated after the 10 per cent GST has already been added to the price.

The car industry and the European Union criticised the tax increase, which the Coalition labelled a "Tarago tax" that was not aimed at luxury cars but would increase the price of family transporters for people "with a few kids" or those using wheelchairs.

<snip>

Maybe some sense will come out of this. :)

[d3funct]

**** the luxury car tax... big deal. Buy a Hyundai if you dont like the tax.

What he should be focusing on, is re-introducing the $8,000 rebate for Solar power for HOUSEHOLDS earning $100,001pa.

A family of 4 living on $100,000 is chicken feed, not well off... hardly even 'comfortable'.

[olbod]

That's the point, it's not. So why do it? It plays well with the press and (so they think) the majority of voters.

So it's not about economic policy and being responsible, its about politics.


Most of the Punters dont understand it !
They think that the tax will be on the total, which would be considerable,
not just on the bit above 57k, Which aint much if you are talking about the lower end of the luxury market.
On the high end, most of it is leased anyway as a tax claim.
But to the Grasshopper it sounds good in theory, eh.

[CaverD3]

Both taxes are based on socialist ideology not economics, so no thought given to the consequences.
Labour drew a line at $100,000 income voters an decided that above that amount you don't count.:mad:

[Sprint]

for anyone who thinks new car prices have no effect on used car prices, think again

[RonMcGr]

**** the luxury car tax... big deal. Buy a Hyundai if you dont like the tax.

What he should be focusing on, is re-introducing the $8,000 rebate for Solar power for HOUSEHOLDS earning $100,001pa.

A family of 4 living on $100,000 is chicken feed, not well off... hardly even 'comfortable'.

I take it you did not look closely at the Solar Power sham?

Solar power rebate change cools public demand | The Australian (http://www.theaustralian.news.com.au/story/0,25197,23706542-11949,00.html)

[CaverD3]

Those who need the rebate most are unlikely to be willing to pay for them let alone able to, even with the rebate. Without the rebate it is not worth while for those who can afford it to install them.
If it does not make financial sense for a higher income earner to install as they are effectively subsidising the difference anyway there is no way lower income earners should be expected to take up the smaller cost of solar power.
If the idea of the policy is to promote the use of home solar generation then it should be as wide as possible. If it is to give solar power to the workers the subsidy would need to be close to 100%.

[RonMcGr]

Those who need the rebate most are unlikely to be willing to pay for them let alone able to, even with the rebate. Without the rebate it is not worth while for those who can afford it to install them.
If it does not make financial sense for a higher income earner to install as they are effectively subsidising the difference anyway there is no way lower income earners should be expected to take up the smaller cost of solar power.
If the idea of the policy is to promote the use of home solar generation then it should be as wide as possible. If it is to give solar power to the workers the subsidy would need to be close to 100%.

We put in for it and then backed out after reading how Bligh intended to use it in QLD :eek:
Power went into the grid and we bought it back at a not so cheap rate. The whole deal was nothing like it looked and was going to cost more in the long run.

Bring on nuclear power :D

[CaverD3]

That's why the city folk are pulling out at a rapid rate. Country folk will use the power themselves before the thieving government get their hands on it.

[Mudnut]

This might be wrong, but aren't 4x4 exempt from luxury car tax? Or at least at a reduced rate? I do buy new cars for "work", and the BMW X5 was much cheaper than any other BMW sedan (other than the 1 series). All the luxury 4x4's are cheaper than their sedan counterparts.

Just a question:angel:

Ken

[CaverD3]

Luxury car tax applies but import duty is lower except for jap utes which come from Thailand in which case it is zip as we have a free trade agreement.