The Federal Chamber of Automotive Industries (FCAI) has spoken out strongly against reports the Victorian State Government is set to implement a luxury car tax (LCT) on vehicles over $100,000.
“It is money grabbing at its worst,” said Tony Weber, chief executive of the FCAI. “But what’s more disturbing is that it is a tax on safety and technology. It targets vehicles that introduce innovative safety and technical features to the market.
“And the vehicle which attracts the most LCT is a Toyota Land Cruiser – a popular vehicle for families and landholders. Hardly a luxury vehicle,” Weber said.
The Luxury Car Tax was originally implemented as a means of assisting Australia’s local vehicle manufacturing industry. Local manufacturing in Australia finished in 2017, which makes LCT redundant. Importantly, an Australian LCT could stand in the way of the development of a European Free Trade Agreement.
“The fact that States and Territories are now considering and implementing this tax is beyond rational belief,” Weber said.