Import tariff 5% by 2010?

[Carlos]

Does anyone have any information if the import tariff for cars are going to be reduced to 5% by 2010?

[amk2912]

Mate, the way the economy is going I doubt the Govt is about to give away future revenue!

[Carlos]

That is what I thought and also that Victoria is pushing to have it extended until 2015, but that Bracks in the last report that was commision, recommended that it was lower on 2010.

[Guran]

Dec 2008 issue of WHEELS (page 22) claims that the import tariffs will be cut from 10% to 5% from 2010. 4WD tariff stays at 5%. This is part of the newly released Federal Govt policy for the automotive industry (as of 10th Nov).

The govt document "A New Car Plan for a Greener Future" confirms that the tariff reduction will go ahead on 1st January 2010.

http://www.innovation.gov.au/automot...eIndustry.aspx

[Carlos]

Thanks mate, if that goes ahead, then it means that car prices will have to go down, so for 2010, hopefully car dealers will pass the whole save on to us the suffering customers, lol!!!
Here is a part of the legislation:

"The passenger motor vehicles and parts thereof tariffs should be reduced from 10 to 5 percent on 1 January 2010. This, combined with assistance under the Global Automotive Transition Scheme, will help deliver benefits to the economy as well as continuing to provide transitional support for the industry."

Agreed.:thumbup:

[Guran]

Actually Carlos, it's more likely that prices will stay pretty much constant when this tariff reduction comes in. It provides a mechanism for car manufacturers to keep their prices steady while absorbing inflation of production costs. You only need to look at what car prices have done over the last 15 years or so to appreciate this. While the tariffs have been falling all that time, the list prices have remained pretty much constant.

[professor]

not sure that what you mean there guran; even if it provides manufacturers a mechanism to keep nominal prices "steady", the inflation-adjusted real prices will surely be affected somewhat.

[Carlos]

I reckon they will go down, at least on the most expensive models since, the import tariff is fromthe bottom of the price, just before the GST or LCT comes into play, even though you can always expect car dealers not to pass it, but less hope for the prices to go down even if it a little, now with the aussie dollar so low, they are going to readjust the prices up again.