Barbara Hartwell News » May 2016

Monthly Archives: May 2016

BUSINESS

Higher Demand For Luxury Cars, Higher Import Duty Taxes

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Lobbyists for the luxury car industry have exerted all efforts to reduce the impact of taxes on luxury cars in Australia. The taxes on luxury cars have been described as discriminatory and a punishment for motorists that prefer innovation and efficiency. The Treasury believes that the sales of luxury cars in Australia will continue to grow so that it has revised its forecasts to incorporate an additional $240 million in luxury car taxes for the next four years.

The boom in luxury cars sales has certainly pushed the government to revise its estimated $510 million taxes this year to $570 million or $60 million more that it has previously expected. Local motorists should be aware that the estimated amount of luxury car tax will increase by 11.5% over the next 12 months.

The Australian government also expected about $550 million from the 5% import duties from overseas cars but the growth in luxury car sales has led to a revision of $570 million. This figure does not include cars from countries that have free trade agreements with Australia.

According to Michael Bradley of the Australian Automotive Association, he was disappointed to see that luxury car tax and import duties remain in place. The taxes do not justify the fact that local car manufacturing industry must be protected. What the taxes should target are safety and fuel efficiency on the roads. What is worse will be the extra $360 million in taxes from Australians in the next year alone.

Since the introduction of FTA agreements, cars from Japan, China and Korea have become significantly cheaper because they are no longer subjected to 5% import duty tax that applies to cars imported from countries like Germany and the UK. Due to the FTA agreements, family cars will be cheaper for Australian households and businesses.

However, not all individuals will be happy with cheap cars. Ferrari 488 for sale is very attractive for many Australian consumers who are looking for a powerful and high performance car. The new Ferrari 488 GTB not only delivers unparalleled performance, it can be controlled to an unprecedented level by less expert drivers.