Thursday, September 25, 2008

Luxury Car Tax Update

The opposition has continued its attack on the luxury car tax bill as it passed the final stage of parliamentary processes. The Coalition's deputy Senate leader, Eric Abetz, argues the changes are inflationary and unfair. He says Family First's amendments mean that the bill provides a tax break for farmers who use expensive four-wheel drives but not their farm workers.

We have one of the most socially unequal pieces of legislation passed through this place, the inequity of the amendments is gross, I would even describe it as obscene.
Meanwhile the peak body representing the Australian car industry, the Federal Chamber of Automotive Industries (FCAI), says the legislation agreed to by the Senate, imposing an increase in the luxury car tax is deeply flawed according to its spekesperson.
This tax hike was always bad policy and the various conflicting amendments passed by the Senate have only deepened the flaws in the legislation," FCAI Chief Executive Andrew McKellar said. "The industry is disappointed the Federal Government has pursued political expediency and sacrificed principles of good policy formulation in order to achieve a short-term tax grab," he said. We are concerned with the lack of consultation and particularly disappointed with the apparent disregard the government has shown towards the Australian automotive industry on this matter. >> more
Well to do Australians can splurge on luxury cruises, fine jewellary and designer clothing while just paying the standard 10% GST, so why the bias with luxury cars? Where is the logic?

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