From GoAuto this morning:
Fate of the controversial luxury car tax bill rests with senator Steve Fielding
By TERRY MARTIN
THE fate of the federal government’s
controversial luxury car tax (LCT) bill
remained in the balance as GoAuto
closed for publication last night, with the
treasurer’s offi ce continuing to negotiate
with senator Steve Fielding prior to the
proposed legislation’s return to the Upper
House this week.
The Federal Chamber of Automotive
Industries (FCAI) was continuing to push
for the bill – which will see the LCT increase
from 25 per cent to 33 per cent – to be voted
down after senator Fielding’s offi ce issued a
statement confi rming that negotiations were
ongoing following initial talks.
The Family First senator, who has become
the crucial link on whether or not the bill is
defeated, held talks with treasurer Wayne
Swan late last week and again this week, and
is understood to have drafted amendments
to the legislation which the government is
considering.
The bill is scheduled to return to the
Senate for further debate today (Wednesday),
although other matters before the Upper
House could mean that a vote is not taken
until later in the week.
FCAI chief executive Andrew McKellar
told GoAuto that the situation remained
“fl uid”.
“It remains in the balance, but the position
of the (car) industry is clear,” he said. “We
urge the Senate to once again reject the tax
increase. It is clear that it is already causing
damage to the industry. If it is passed it will
cause further harm – and that will be to local
manufacturers and to importing brands alike.
“So for that reason, we believe that the
most responsible course of action is for the
Senate to again reject it.
“Our concern is that it is fundamentally
fl awed legislation. It is an unnecessary tax
hike at a time when the economy is slowing.
There is no way that you can make it
fundamentally better through amendments –
however well-intentioned those amendments
(from senator Fielding) might be.”
Mr McKellar said it remained “impossible
to judge” whether the latest moves from
senator Fielding – who has already rejected
the government’s proposed LCT hike on the
basis that it penalised “tool of trade vehicles
for farmers and tourism operators” – would
see an amended bill approved.
“It is really quite impossible to make this
proposed tax increase any better through
amendments – at the end of the day, the
industry would be a net loser,” Mr McKellar
said.
“I have absolutely no criticism of senator
Fielding, or any of the other senators who
are looking at these issues. Senator Fielding
determined his position in the original
debate, and I believe he was very correct in
what he did. And I have no qualms that he is
pursuing discussions as he is entitled to do.
“The industry encourages him to
continue to pursue those concerns that he
has articulated. But also, we have sought
to highlight with him – and with the other
balance-of-power senators – the adverse
impact that this tax increase would have on
the car industry.”