Senate Committee hearing on Envy Tax due Tuesday 26th August

[amk2912]

I'm sure "Porsche, Rolls Royce and Maserati" comments from the Govt are cleverly designed by their media spin doctors to exacerbate Tall Poppy Syndrome mentality amongst the vast majority of voters. Its designed to get Joe Average to support the tax as theoretically it should not affect the averae car buyer.

If they were forward thinking they would introduce a sliding scale of taxation so that the more you earn the less you pay in proportion. That way there'd be incentive to work hard and earn more. But then that's too far forward thinking for a Labor Govt...............

[Alpine*]

For those interested, below is a copy of an email my lovely wife sent off this AM, without prompting from me even!

To: senator.fielding@aph.gov.au
Subject: Luxury Car Tax

Senator Fielding,

May I pass on my thanks for your action to vote against the increase in LCT.

This proposed increase affects far more Australian's than just the buyers of Porches, Rolls Royces and Ferraris as the Government would like us to believe. Many other cars, which I would consider modest, now fall above the $57,180 threshold including Australian made Holdens and Fords. I cynically ask, is that why the Labor Government wants the increase knowing this fact?

We have seen in recent months a decline in new vehicle purchases, some of which could be attributed to the proposed change in tax. This is also hurting the Australian Auto industry. Don't even start about what I would consider an unethical requirement to collect the tax before it was even proposed and passed in Parliament.

I understand that the tax was originally introduced to give the Australian made cars an edge over imported cars, however, the threshold hasn't risen in years.

Porsche and Ferrari drivers will pay whatever tax is required regardless of the cost of the cars, however why disadvantage the "Average" Australian (wasn't this Mr Rudd's cry during the election campaign).

Given that this bill will come up again in the next few weeks, I would suggest that they make an increase the tax to 33% if they must, but raise the threshold to something reasonable ie over $100,000 where the real Luxury Cars lie. This will enable we "Average" Australian's to buy a car without being unfairly slapped with a tax really aimed at those earning a higher income.

Regards

I encourage some more support from all of you guys, the Liberals and Fielding (crossed fingers) have saved us all some cash and, aside from that, the fact is what they were trying on us was nothing mare than a Labor tax grab and is damn wrong anyway!

[The Voice of Reason]

The wife's Tarago falls into the "luxury" tax bracket - a bloody Toyota as a luxury car in the same league as Porsches and Rollers???

Purrleeze!!!

[WAY]

Alpine, can you tell your wife to retract that email? I don't want the LCT to increase at $100k threshold!!! Noooooooooo! Lol

[Alpine*]

Originally Posted by WAY

Alpine, can you tell your wife to retract that email? I don't want the LCT to increase at $100k threshold!!! Noooooooooo! Lol

Yeh I thought that too, remember what will be in my garage next to the 1 when it arrives.. MMMMMMM. As I said NO input from me, principle is good though.

[SimonB]

Alpine, congrats to your wife. I was considering writing an email, I will definitely do so now.

[Alext]

Scrap LCT altogether. Double taxing should be disallowed.

[shauno]

I fully agree with the above statement. We need to scrap this tax all together not just prevent the 8% rise or raise the threshold. All it is as mentioned an envy tax and tax on people who strive to achieve. We did not give the labour govt a mandate for raising taxes especially when we have surpluses on the north side of 20 billion a year.

[imported_pacman]

I just dont get the whole LCT purpose. Rudd and Greens claim its aimed at the Rolls Royce Drivers and Porsche owners. Can someone point me to a dealer that sells the above cars for $57,180 because if thats the threshold there must be Porsche and Rolls Royce Models out there at that price point. If the government are serious at aiming at those markets then have a threshold that truly reflects that market ie $200,000 plus. Just looking at my BMW Car Sales Contract I signed close to $9,000 of it is LCT Stamp Duty and Dealer Delivery The Break down is roughly this $3500 DD, $2460 LCT and $2,800 Stamp Duty Oh and GST is in there somewhere as well How many bites at the pie does the government want.

[MikeVictor]

Originally Posted by pacman

I just dont get the whole LCT purpose. Rudd and Greens claim its aimed at the Rolls Royce Drivers and Porsche owners. Can someone point me to a dealer that sells the above cars for $57,180 because if thats the threshold there must be Porsche and Rolls Royce Models out there at that price point. If the government are serious at aiming at those markets then have a threshold that truly reflects that market ie $200,000 plus. Just looking at my BMW Car Sales Contract I signed close to $9,000 of it is LCT Stamp Duty and Dealer Delivery The Break down is roughly this $3500 DD, $2460 LCT and $2,800 Stamp Duty Oh and GST is in there somewhere as well How many bites at the pie does the government want.

As many as they can get away with?

[bluRider]

ATO has released this info:

http://www.ato.gov.au/corporate/cont...t/00162693.htm

which basically says that the dealers should continue collecting the increased LCT as the bill is being re-introduced into the senate...

Spoke to my dealer as well and was advised that should the bill be rejected (again) then I will need to seek a refund from the ATO, although they will assist in obtaining it ...

... not happy jan ...

anyone else heard from their dealer on this?

[shauno]

OK just sent my email off to Senator Fielding

[imported_pacman]

So here is a question when is LCT Applied the price at date of signing contract or price at date of taking the delivery. The reason I ask is my car was ordered before the 1st July however the contract has the 33% lct

[AussieRacer]

For what it is worth, I've sent him an email to!

pacman it is from date of delivery/receipt of goods. I'm in the same situation as you.

[imported_pacman]

Ahh I found the answer in the link posted above to the ATO its calculated at delivery

[Alext]

I think this time they will be forced to make some adjustments to the proposed LCT increase before it is accepted. What those changes are, one can only speculate.

[MikeVictor]

I'd expect the changes they dangled in front of the Greens and Xenophon, which is the inclusion of an exemption for cars with consumption of <7L/100KM.

An increase on the limit to say, $100k+ would be great but I wouldn't hold my breath.

[Timbo]

Originally Posted by bluRider

ATO has released this info:

http://www.ato.gov.au/corporate/cont...t/00162693.htm

which basically says that the dealers should continue collecting the increased LCT as the bill is being re-introduced into the senate...

Spoke to my dealer as well and was advised that should the bill be rejected (again) then I will need to seek a refund from the ATO, although they will assist in obtaining it ...

... not happy jan ...

anyone else heard from their dealer on this?

Youre dealer is talking crap. As per the Ato link above:

"To reduce compliance costs for motor vehicle suppliers, the Tax Office will allow them to report the additional luxury car tax in the first business activity statement (BAS) that is due after the law is passed"

So the dealers have the money not the ATO.