Luxury Car Tax is back before the Senate

[ExMX5]

LCT is due to be tabled again this week.

The government hasn't sweetened it and since it was tossed out last time one independant has asked why we need it at all, so it looks like it will be tossed out again at this stage.

More as it comes...

[Alpine*]

An article out of Carsales today!

>> Luxury Car Tax redux
Were you surprised to learn that the federal government's bill to increase the LCT (Luxury Car Tax) from 25 to 33 per cent hasn't just died after being defeated in the Senate last week? We were.
An industry insider told us that it's uncommon for a defeated bill to be re-presented within three months.
"It shows the desperation of the government to impose an unpopular tax that does not enjoy wide support within the government, because it's the flag for the politics of envy," our source told us.
It's 'unpopular', according to the information received, because there has been a substantial body of press coverage of the LCT increase since it was announced back in May.
"Since this was announced, it has been in the mainstream press at least twice a week, since May," our confidential informant continued.
"In terms of [Australian-based] media coverage -- and including Internet here -- there are over a thousand news articles about this. This issue is now part of the government's media measuring, that's how 'front-of-mind' it has become for them."
The informant says that the issue is "political" and, when asked why this issue is being revisited so quickly, made the observation that "a dog always returns to its vomit".


Love the last bit!

[Alext]

This government is getting out of control...

[amk2912]

Come on everyone!!! We got rid of Labor (eventually, with a bit of Nat help) here in WA....let's do it across the states, and Kevin too!

[SimonB]

I've written my email to Senator Fielding, have you?

[Alext]

Rudd is linking the blocking of the LCT to the government's capacity to provide relief for pensioners now: "If we are going to engage in long-term reform for the nation on urban congestion in our major cities, on reform to the pension, it is going to cost a lot of money. And a half a billion for Porsche drivers around the country is something we could put to that purpose."

What a joke.

What about Rudd's $500k 17-day trip overseas?

[Wraith]

Yes, unfortunately it's back on the table, but dosn't look like going ahead - hopefully it'll be killed off once and for all and good n proper !!!

It is because of this that all dealers are still implementing it ! I was at an Audi dealership over the weekend (booked a back to back test drive session of both the new TT/S and new S5 - more of that in another forthcoming thread) and they told me, they are still applying the additional LCT until when and if they hear it's 'definitely' gone...

[MikeVictor]

Originally Posted by Alext

Rudd is linking the blocking of the LCT to the government's capacity to provide relief for pensioners now: "If we are going to engage in long-term reform for the nation on urban congestion in our major cities, on reform to the pension, it is going to cost a lot of money. And a half a billion for Porsche drivers around the country is something we could put to that purpose."

What a joke.

What about Rudd's $500k 17-day trip overseas?

What a joke. Typical use of weasel-words from the Chairman too. I'd like to "engage in long-term reform for the nation" using my size 10 boot and, well, you get the picture...

[Jaymz]

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.”

[bfi2906]

As i understand it, Senator Fielding's proposed amendments would exempt certain groups of people - farmers, tourism operators, etc.. If that's accepted, the amended bill could be passed, which would mean that "normal" buyers of cars over the threshold would still be hit for the additional LCT.

If that's what happens, good luck to the holden and ford dealers trying to sell Calais, Fairmont's & Statesmen -- no chance in hell.

I also believe he is proposing that the threshold of ~$57K for the whole of the LCT, be lifted, and indexed. Not a bad idea at all!!! That threshold was set quite a few years ago. It's like "bracket creep" in income tax. The longer they leave it alone, the more people get caught by it, and thus, the more revenue the tax generates.

[MikeVictor]

Originally Posted by bfi2906

As i understand it, Senator Fielding's proposed amendments would exempt certain groups of people - farmers, tourism operators, etc.. If that's accepted, the amended bill could be passed, which would mean that "normal" buyers of cars over the threshold would still be hit for the additional LCT.

If that's what happens, good luck to the holden and ford dealers trying to sell Calais, Fairmont's & Statesmen -- no chance in hell.

I also believe he is proposing that the threshold of ~$57K for the whole of the LCT, be lifted, and indexed. Not a bad idea at all!!! That threshold was set quite a few years ago. It's like "bracket creep" in income tax. The longer they leave it alone, the more people get caught by it, and thus, the more revenue the tax generates.

I wonder if I can get classed as a tourism operator if I'm going to show my cousin and her husband from the Nederlands around for a month or so! :thumbup:

If this "tax on a tax on a tax" is going to stay, I would suggest increasing the limit it kicks in and indexing the only sensible thing to do.

Wonder what they'll increase the threshold to?

I actually emailed Fielding this morning in support of his decision.

[Jaymz]

Originally Posted by bfi2906

I also believe he is proposing that the threshold of ~$57K for the whole of the LCT, be lifted, and indexed. Not a bad idea at all!!! That threshold was set quite a few years ago. It's like "bracket creep" in income tax. The longer they leave it alone, the more people get caught by it, and thus, the more revenue the tax generates.

I have heard they might penalise cars (more LCT) that have higher CO2 emisions.
Of course BMW and Merc are applauding this but imagine the pain that will be felt in the Ford and Holden camps!

[MikeVictor]

Originally Posted by Jaymz

I have heard they might penalise cars (more LCT) that have higher CO2 emisions.
Of course BMW and Merc are applauding this but imagine the pain that will be felt in the Ford and Holden camps!

The change that got the Greens to vote with Labor was to exempt cars with fuel usage of <7L/100KM I think.

Not even a 118 or 120 make this number, you pretty much have to be a hybrid or diesel vehicle.

If it were based on emissions that could be a very good thing, as a lot of the euro-cars tend to shape up well in this area.

In some cases the air coming out is probably cleaner than when it goes in! :biggrin:

[earlyMLC]

We're screwed,...

Fielding to back luxury car tax changes

Posted 1 hour 19 minutes ago
The Federal Government's attempt to hike taxes on more expensive cars is closer to success after it agreed to the demands of a key independent Senator.
Family First's Steve Fielding says the Government has agreed to exempt farmers and tourism operators from the luxury car tax by offering them a $3,000 refund.
Cars worth more than $57,000 will attract the tax.
Senator Fielding joined the Coalition in opposing the tax last week but will now support the measure when it is reintroduced.
"I think that most farmers and tourism operators will be very thankful not to be hit by an increase in taxes," he said.
"There may be other parties that want to go further but we believe that obviously farmers and tourism operators are the ones that can least afford it.
"They're doing it very, very tough and they're the ones that this is no luxury, this is a tool of trade for these people."


http://www.abc.net.au/news/stories/2...section=justin

[professor]

well, that just knocked my desire and plans to splurge on my dream car at the end of this year for a six.

[Wraith]

Originally Posted by professor

well, that just knocked my desire and plans to splurge on my dream car at the end of this year for a six.

Damn, it puts a huge dent in my plans too, as I'm cross shopping and seriously considering alternatives which are alot more expensive than the 135i and need to fork out even more to get them with exactly what I want

Looks like I'll definitely be going into 2009-10 before getting anything...

On the bright side, there'll hopefully be new and better features/options/variants by then, not only with the Beemer but the other marques I'm considering...

[bfi2906]

Nice work Senator Fielding -- nothing quite like doing your homework -- you should give it a go sometime.

Congratulations!!! You've just put a huge dint in the Australian High end car market, and pi$$ed of a lot of voters that would have stretched up a level in their car, from a Commodore to a Statesman, or from a Fairmont to a Beemer -- in one go. It would have taken considerable thought for you to demonstrate less understanding of the Australian Car market.

But you will have made all the Macquiarie / Elizabeth St farmers happy. They'll all be applauding from the bull bars of their $180K Lexus LX470's as they burn 200Lt/100Kms, as they do the weekend run to the Yarra and Hunter Valleys.

Congratulations Senator Fielding - you twit. Any wonder you're in independant - no one credible would associate with you.

PS - FWIW, the good senator drive a yaris :headbang: - and what's worse, he admits to it. Oh the shame and indignity of it

[MikeVictor]

F*ck

[xa-coupe]

Originally Posted by bfi2906

But you will have made all the Macquiarie / Elizabeth St farmers happy. They'll all be applauding from the bull bars of their $180K Lexus LX470's as they burn 200Lt/100Kms, as they do the weekend run to the Yarra and Hunter Valleys.

I was wondering why a farmer would worry about LCT if they were buying utility vehicles ( and I don't mean utes ). I came to the same conclusion as you, the guys with shyteloads of money will be the ones to benefit..but it sounds like he is doing primary industry a favour... beautiful sleight of hand.
Politicians make me wanna puke.

[earlyMLC]

Flood your abuse to this idiot:

senator.fielding@aph.gov.au

[Guran]

Ah well, so I'm up for an extra $1840. Was expecting that anyway, really. C'est la vie.

[amk2912]

I didn't vote Labor so it's not my fault!

I could have put some decent hi-flow cats on my car with the LCT increase those b*stards took by stealth. I'll still put them on anyway :thumbup: