Wednesday, September 24, 2008

Luxury Car Tax

The paradox of the car tax bill...

The federal government's luxury car tax increase finally passed parliament's upper house yesterday after being amended by cross bench senators. The government's four bills seek to lift the luxury car tax, which applies to cars worth more than $57,180, from 25 per cent to 33 per cent.

The bills were defeated in the Senate earlier this month after Family First Senator Steve Fielding sided with the coalition to vote it down. >> more

As the Government re-introduced its amended luxury car tax bill into the senate following its deal with Family First, a pertinent thought came to mind...

What a shame Labor politicians could not see beyond tax matters and ideology thus making it possible for us to drive the best cars obtainable at the most affordable market set pricing. Purported “luxury cars” comprise of the safest, most efficient offered; least from an emissions standpoint.

Given to, the fixation many politicos have with road safety, one would think that they would have as many of us as possible benefiting from the latest technologies, which incidentally are typically developed by, and included first, in luxury models .

Instead, they seek to increase tax taking from the upper end of this market and in doing so, artificially preserve the value of older less efficient, more unsafe vehicles. The result sees us keeping these older units on our roads longer than they would otherwise be, courtesy of values driven by tax imperatives …

(Thanks to reader Lisa)

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